Bank and HUD Foreclosures Prompt Additional Government Grants- By: Clark Raitz
With the increase in the number of bank and HUD foreclosures not showing any sign of abating, the U.S. federal government was forced to issue grants worth $73 million designed to benefit foreclosure counseling agencies all over the country. The announcement was made a few days before Christmas in a teleconference held by the U.S. Housing and Urban Development (HUD).
The news has considerable significance in Indiana as the region, like other U.S. states, has suffered from high levels of Indianapolis home foreclosures and distressed properties in various locales in the past three years. The grants, according to government representatives, will be used to provide financial support to counseling agencies specializing in assisting homebuyers and homeowners facing possible foreclosure.
According to federal government officials, borrowers who receive advice from home counselors have more chances of avoiding foreclosure and are more likely to secure loan modification. The recently announced grants are part of the federal government’s efforts to control the continuous rise in the number of bank and HUD foreclosures all around the country. Latest housing data for 2010 showed that around 980,000 properties have been repossessed by lenders during the year and more are expected in 2011.
Although Indianapolis home foreclosures and distressed dwellings in the whole state of Indiana remain at high levels, Nevada remained the top-ranked state in terms of foreclosure numbers in 2010. Along with Nevada, the states of Utah, Florida, Arizona and California are also in the top five when it comes to foreclosure activities. Most analysts agree that along with the growing foreclosure total of the country, declining tax revenues from Real Estate also contributes to the problem, with local agencies unable to offer more services to homeowners who need them most.
Analysts added that huge foreclosure supplies are leading to more abandoned and vacant properties, leaving municipalities lacking in tax revenue resources. The grants, according to federal officials, are meant to pick up the slack in foreclosure-related services caused by declining local revenues. The effort will also benefit senior homeowners who are believed to be most immune to homeownership problems, with a big number of elderly homeowners seeing their properties lost to bank and HUD foreclosures.
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