Foreclosure Crisis Gets the Government Moving

Time icon December 5th, 2008 by Autor Joseph Smith

It is sad to see foreclosed properties deteriorate over time. What makes this even sadder is the number of such properties keep increasing through time. And one of the places that is greatly affected by this foreclosure crisis is the Prince William County, Virginia which is located in Washington Metropolitan Area.

Foreclosure Crisis Gets the Government Moving

The government has broken its silence and has made efforts to respond on such a crisis. Washington politicians has issued a mortgage rescue bill, which provides $300 billion for refinanced mortgages and $4 billion for repairing and buying up foreclosed homes in communities.

Only 42 applied to refinance mortgages, which is so far from the 400,000 homeowners expected. This is why the government plans to make it easier for borrowers to get qualified for the loans.

Communities’ plans are expected to be submitted by December 1, and the U.S. Department of Housing and Urban Development will be approving proposals and will be giving out funds by February.

Washington foreclosures are highest in number in Prince William County. Sales are going up, but still, prices do not. The $4 billion that the country will get has parts allotted for helping middle-income families buy new homes, purchasing foreclosed apartments to prevent eviction of renters, rehabilitation of foreclosed homes, and other redevelopment efforts. The effect of this $4 billion allotment will depend on how communities are going to use it.

Most foreclosed properties are being sold “as is”. Some, like those in Irongate are more damaged than those in Gainesville. But whatever it looks like, for as long as it is untouched by a repairman, it will sell way lower than its original home value.

Foreclosure crisis is not really a hopeless case. It is good news that during the previous two months, the number of foreclosure sales has outpaced newly-foreclosed properties. If this trend continues, Washington foreclosures will significantly decrease, as well as that of the whole nation.

Learn about government foreclosures.

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