Pasco County is Waiting for Federal Funds

October 27th, 2008

Pasco County is Waiting for Federal Funds
A rescue plan for foreclosure that is worth $20 million has taken some shape in Pasco County. This has made the commissioners of this county put forward that proper steps have to be taken to deal with this real estate crisis situation in Pasco County. The increasing rate of foreclosure nationwide has put the real estate everywhere into severe problem. The West Pasco Board of Realtors president Greg Armstrong has addressed to over 50 agents and agents and said, “We must act swiftly to turn the tide,” He has also said that Pasco County shows a foreclosure filing of nearly 100 every week.

The real estate experts have decided to come forward and put their strong efforts to deal with the problem. They think that something has to be done to assist the distressed homebuyers to get out of this crisis situation. They have decided to use a major portion of the federal funds for helping them out. Armstrong said, “We are in extraordinary times and it calls for extraordinary thinking,” The problem of foreclosures has also brought down the prices of homes. This has been beneficial for the first time buyers who could now buy homes at a price much below the prevailing market value.

George Romagnoli, the community development manager of Pasco County said that the original concept was to use major part of the federal fund after the county by making a direct purchase of nearly 182 properties that have been foreclosed and are in a tremendously bad condition. Just like the real estate experts, Commissioner Michael Cox agrees upon the fact that a homebuyer aid program will help a large number of residents of Pasco County than it would have been if the county bought simply the properties that have been foreclosed.

This county has been able to qualify for the 17th biggest amount under the US Department of Housing and Urban Development’s Neighborhood Stabilization Plan. It is supposed to get a share of $19,495,805 that is much more than that of the combined amount allotted to Boston, San Diego, Nashville, and New Orleans. Public hearings are going to take place in the next month. Pasco County has to make a submission of its plan by December 1 to the HUD. It is expected to get its share of funds by December end.

John Gallagher, County Administrator said that the plans will aid in preventing a second session of subprime loans to the buyers who have defaulted on their payments and are facing foreclosure now. This will in turn also prevent history from making a repeat.