Merced County Needs Fund to Fight Foreclosure

Merced County is one of the hardest hit counties of California. Nearly 25 percent of homes in California are facing a notice of foreclosure on them. The real estate of this county is suffering heavily. It has been put forward by the leaders of the Merced County that the state needs to give a foreclosure aid fund amounting to $30 million. This fund can be used to help the distressed homeowners to come out of this grave situation. About $145 million fund was provided to California under the Neighborhood Stabilization Program by the federal government for helping the different counties and cities in fighting with the problem.

The cities and counties received over $300 million directly. Merced County including its cities was not taken into the round of direct funding from the federal government. A note of frustration was evident among the area leaders as this county was not included into the direct funding round. They have decided to seek help from the state. They are expecting that the foreclosure aid will be granted to them in the month of March and will be subjected to execution in May. Mayor Ellie Wooten said, “I promise you we’ll spend every dime as quickly as possible,”

The plan aims at helping the low income group to get their home back to them and at the same time reduce the number of abandoned homes. This will help in stabilizing the price in the real estate. On an average, homes in the Merced County have lost nearly 40 percent on their value. Tommy Jones, Mayor of Los Banos said, “Merced County is the hardest-hit county in the whole nation. There are families behind these numbers hurting.” California account for 25 percent of the foreclosure throughout the country and based on that the officials there hoped to receive about $1 billion fund. However, it got $529 million as foreclosure prevention fund.

A report has been sent to director Lynn Jacobs by Merced County and its six other cities. This report highlights the devastating condition of the real estate of the region. Last summer, Congress passed the Housing and Economic Recovery Act that proposed for a $4 billion foreclosure aid for the suffering homeowners of the country. The leaders of the Merced County are eagerly waiting for a positive move. For the time being they have nothing to do but to wait for a decision by the state.

Popularity: 6% [?]