Richmond and Northern Virginia Gets Foreclosure Assistance

The real estate experts of Richmond and Northern Virginia are going to meet soon to discuss about how to spend the $46 million to fight away foreclosure crisis. This amount is likely to be handed over to the local governments for rehabilitating the vacant properties, buying homes, assisting the first time home buyers to make their mortgage payments, as well as helping the distressed borrowers to get back their homes and prevent foreclosure. This $46 million is actually a part of the $4 billion program of the US Department of Housing and Urban Development that was approved by the Congress in the month of July. It was basically to help those areas that have been heavily affected by the problem of foreclosure.

According to the US Department of Housing and Urban Development, about 4.3 percent of the mortgages in Prince William are in a state of foreclosure. It has been found that the Fairfax County has a foreclosure rate of about 2.3 percent. Probably both these counties are going to get some extra amount of cash from Richmond. It has been estimated that about $38.7 million share of Virginia is going to be directed through the housing officials in Richmond. Prince William County is going to enjoy $4.1 million and Fairfax County will get a share of $2.8 million.

Counties like Arlington and Loudoun as well as Manassas and Alexandria of Northern Virginia can go for an application of money from the state pot. Director of Virginia Department of Housing and Community Development Bill Shelton has said, “The key thing is that $38.7 million for Virginia may seem like a big number, but in the foreclosure business, it’s a pin drop in the bucket. So if we don’t find ways to leverage this, it’s not going to be impactful,”

Fairfax County has plans to use the share of HUD and $6.3 million together in county funds as has been said by the deputy director of housing and community development Mary Stevens. She has further said, “We want to help homeowners in distress and buy foreclosed properties to sell to first-time home buyers,” The data of HUD reveals that although Fairfax, Prince William, and other areas of Northern Virginia are facing foreclosure problem, still their condition is much better than some of the nation’s places that has been badly affected by this real estate problem. The rate of foreclosure in Florida, Nevada, California, and Ohio stands at 10 to 14 percent and that in Detroit stands at 16 percent.

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