WEST PALM BEACH, Fla. (AP) -- In a state where foreclosures are up nearly 70% from a year ago, this South Florida city is doing what it can to help keep people in their homes.
The city on Tuesday will open a foreclosure assistance center in partnership with the U.S. Department of Housing and Urban Development to help homeowners renegotiate mortgage payments, repair damaged credit, and, in some cases, provide a direct payment of $10,000 to people behind on their loans.
As housing markets slump nationwide, cities across the country are scrambling to work with residents who are in danger of losing their homes to foreclosures. Daylong fairs, where lenders and counselors offer advice to desperate homeowners, have occurred in Miami, Philadelphia, Boston, and dozens of other cities and towns.
In February, Florida trailed only Nevada and California in the percentage of homes in foreclosure. RealtyTrac Inc. said 32,447 homes were in foreclosure statewide in February, up more than 69% from February of last year and up more than 7% from January.
The new center in West Palm Beach will be free of charge and open weekdays. The $1 million program will be financed with $650,000 from a developer-funded city trust and about $350,000 in HUD grant money.
The center also will help financially stressed homeowners sell their homes through what's known as a "short sale," where the home is sold for less than the amount owed on the mortgage but a foreclosure is avoided.
The city has partnered with financial institutions to buy the homes, including BankAtlantic (BBX), Bank of America Corp (BAC, Fortune 500). and SunTrust Banks Inc (STI, Fortune 500).
"Then the city will place the purchased houses in our affordable housing program making potential buyers eligible for down payment and closing cost assistance," said city spokesman Chase Scott.
Added Mayor Lois Frankel: "For many, the national dream of home ownership has turned into a national nightmare of foreclosure." The center's intent, she said, is "to provide concrete solutions to the most daunting challenge facing America's families." See Also
No comments:
Post a Comment