Foreclosures: $25 Million Granted to Cincinnati

October 7th, 2008

$25 Million Granted to Cincinnati
US Department of Housing and Urban Development has granted the communities of Cincinnati area a fund of over $25 million. This federal money has been granted to them so that they can fight with the problem of foreclosures in their area. Half of this fund can be used to rehab and buy properties that have been foreclosed. This fund will help the distressed homeowners facing the real estate problem to a great extent. The wave of foreclosure has put them into a terrible situation. The fund that will be handed over to the communities comes from the Neighborhood Stabilization Program of HUD. This program was created by the Housing and Economic Recovery Act of 2008.

It has been said that the fund has to be used within a period of 18 months. Foreclosure has left many homeless. They really are at loss as to whom to go for help. Mark Mallory, who happens to be the Mayor of Cincinnati, has declared that an amount of $8,361,592 will be received by his city. Money will also be given to twelve more jurisdictions of Ohio. Butler County will be receiving an amount of $4.2 million. Hamilton County has been granted an amount equaling to $7.9 million. A total of $7.9 million and $2.1 million have been granted to Hamilton City and Middletown respectively.

Mallory has not said anything regarding when they are going to receive the money but is very sure of getting it soon. He has also said that the community development and planning departments of the city is going to decide upon how to make use of this money effectively in the real estate. He has expressed his deep excitement and has said, “We are very, very, very excited about what this means for this area. We’re certainly happy to see it.”

The fund from HUD will help a lot especially those with a low and moderate income for making their down payments. Besides, it will also help them in meeting their closing costs provided that the homebuyers get their mortgages from well known lenders and also get to attend sessions on housing counseling. The municipalities will also be able to make use of the fund for creating land banks other than collecting and managing the properties that are vacant for redevelopment purpose. Proper steps are required to be taken in the area so that people becomes more aware about the problem of home foreclosure.