Fixing of Foreclosure Crisis Through the Stimulus Funds in the Bell and Coryell Counties

The Bell and Coryell county homes are supposed to receive aid from the combined contract of the ‘Fort Hood Area Habitat for Humanity’ with the state through a contract worth $1.75 million. According to this contract the Habitat will rehabilitate the various properties and make them affordable for the families with lower incomes.

The tabs on the stimulus funds are supposed to be removed by the state. According to Gordon Anderson (the senior communications adviser for the Texas Department of Housing and Community Affairs) the $90 million package is included in the funds received by the state due to the ‘Housing and Economic Recovery Act of 2008′.

Anderson further emphasized that, “These dollars are geared toward stabilizing neighborhoods that have suffered from foreclosures or abandoned homes, and arrest the slide of declining property values to surrounding neighborhoods.”

If the deal is signed the Bell County will get approx $1.1 million and Coryell County will receive an amount of $630,000 according to Gene Bauer, who is the executive director of the Fort Hood Area Habitat.

Bauer awaits the review contract to be sent by the Department of Housing. Bauer emphasized that, “This is not an influx of funds for Habitat. We will act as an agent for the state. We won’t actually get any money.”

Bauer’s job involves identification of foreclosed homes and to complete the paperworks and to settle the deal for the Department of Housing.

Bauer observed that, “The state will close on the sale and actually take title to the property. We will manage it and arrange for repairs to be made. The state will reimburse us for the cost of repairs. Our job will be to identify a low-income family as purchaser and take them to the Department of Housing. The state will finance a 30-year, zero-interest mortgage for them to buy the property. That’s why we want to get into this. Habitat doesn’t get any money for this, but it gives us another tool in our toolbox to eliminate poverty housing.”

Bauer observed about the foreclosed properties, “They will have to meet all the requirements of our program, which includes helping others build their homes. But if we match them to a foreclosed home they may not make the repairs. It will depend on the repair work. But probably not.”

The Foreclosure Listing Service of Addison report features an approx hike of 22% has been noticed in the Bell County foreclosures since 2008 to 2009 According to Foreclosure Listing Service of Addison.

Anderson observed that there was a distribution of $90 million among the major metros and scantily populated areas.

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