Fairfax County On Foreclosures

July 16th, 2008

The Fairfax County Board of Supervisors has passed a notice that they are going to fight rigorously to cut down the damaging foreclosure crisis. A three-pronged policy has been planned to create the deal with the Fairfax foreclosure crisis which involves in acquiring, reinstalling, along with revamping and selling off some of the more affected structures of the area. This would attract new buyers easily.

The plan has been approved by an 8-2 vote that just followed after a discussion on the difficult exchange going on between the housing staff and the supervisors involved. There have been much going on regarding the relevance of the details and the scope of the entire plan in the long-term perspective.

About 10 houses that were evacuated have been put up for resale in the county. This incident along with the greater optimism involved to aid first-time homeowners getting into foreclosures are the primary agenda. The Home Equity Loan Program has been anticipated to fill as many as 100 homes in the entire county. Fairfax County will also be offering proper counseling to the home owners so that they can be guided better in the process of property related dealings.

Republican supervisors Pat Herrity and Michael Frey have argued that the market had been filled up with evacuated homes since the county’s first intervention. Frey has even said that it is uncertain how Fairfax would come back to a stable environment in the middle of a shaky market.

Herrity has been viciously critical about the over inflated figure of 3,518 foreclosures that have been reported in the very first half of 2008. He claims that some of the homes have been counted more than twice to have come to this high figure. The Chairman, Gerry Connolly, acknowledged that the plan was too idealistic and could not possibly suceed with very pin-point applications in its uncharted ways. He even cited that over 300 people recently got arrested in regards to the national mortgage fraud problem. The collapse and the resulting federal bailout of Bear Stearns stand out as an incident where the market just doesn’t seem to function in realty reality. Connolly says that these instances raise the government’s obligation to check if there is enough aid to help in this crisis situations.

The running program is to be paid by rerouting the housing funds. The next year would see that the infusion of this money gets distributed according to housing officials. The program is supposed to work to create leverage in the federal resources when they are finally available. It is unclear as to how the homes purchased under the program would be spread across Fairfax County, or whether it would be a better idea to work on the clusters of those hardest hit.