More than 200 homeowners in trouble of losing their homes to foreclosures attended a foreclosure-prevention clinic together with representatives from banks and lenders to discuss mortgage modifications in an effort to prevent more foreclosures. These irate homeowners have lambasted the Treasury Department and the White House for their seemingly lack of support in providing direct assistance for these homeowners.
Most of these homeowners were hopeful that the Housing and Economic Recovery Act which Congress promulgated could ease out their problems with foreclosures. They were expecting direct financial assistance through mortgage restructuring.
However, what communities received were fractions of the $4 billion fund for the Neighborhood Stabilization Program (NSP). To their surprise, the funds were not intended for homeowners but were directed for local governments to purchase and rehabilitate already foreclosed properties. Miami Gardens has more than 4000 foreclosure homes, the worst in Florida, and the NSP fund can only purchase 1 percent or 40 homes from this lot.
Foreclosures continue to grow in numbers nationwide with a staggering 25 percent increase in October as compared to last year. Experts believe that the current economic crisis stemmed from this increase in foreclosures. Chairwoman Sheila Bair of the Federal Deposit Insurance Corporation has been lobbying for the approval of their proposed mortgage-relief plan which has met stiff opposition from the Treasury Department and the White House. Many are supporting this plan but until it is approved, local communities are finding immediate solutions that they can implement at their own accord.
A proposal from Miami was sent to the administration asking for permission to leverage the NSP fund against lenders. Since banks and lenders want foreclosed properties off their books, local governments will use the NSP fund only for banks that signify support in mortgage modifications and would shun away from banks and lenders that do nothing to help the community.
Many experts and economists believe that the real solution to the economic crisis is in helping people and families with their mortgages and stem the flow of foreclosures.
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