Southfield Has Taken Its First Step for Getting $3.2 Million Foreclosure Fund

November 27th, 2008

The first step towards qualifying for the foreclosure aid fund of up to $3.2 million has been taken by Southfield. They are planning to use the money for helping the homeowners in fighting with the problem of foreclosure and abandoned homes in the real estate. The officials of Southfield have published their proposed Neighborhood Stabilization Program on the website of the city. This way it has been able to meet its first deadline that has been established by the Department of Housing and Urban Development (HUD). This fund is a part of the Housing and Economic Recovery Act of HUD that was approved in the month of July.

Southfield has to meet its next deadline on December 1. Along with Southfield, the other communities are required to make their formal applications by that date. They have to clearly mention as to how they plan to spend the foreclosure fighting fund. Southfield together with Waterford and Pontiac is one of the heavily hit foreclosure communities. These regions are suffering heavily from subprime mortgage problems. Above $8.7 million fund has been approved for those communities. About a total of $17.4 million has been kept aside for nearly 50 other communities of Oakland County.

A total of about $3.9 billion have been approved by the Congress for providing emergency assistance. This includes $264 million for the communities of Michigan. According to the manager of Community and Home Improvement of Oakland County Karry Rieth, “The money is intended to help finance the purchase or refurbishing of foreclosed homes, or in some cases, the money can be used to demolish houses that are beyond salvaging.” The people of Southfield have been asked to get hold of the deputy administrator Fred Zorn for foreclosure assistance. City Council President Joan Seymour said, “Fred Zorn has been working on the plans since he came aboard,”

Seymour also said that the city is planning towards working in close connection with the associations in the neighborhood that deals with foreclosed and vacant homes. The feedbacks from the residents have to be taken by the respective communities. Zorn has already received a feedback from one of the residents who has said that their foreclosure fighting plans are going to provide great advantages to the real estate of the city. The goal of the city is to make an equal distribution of the federal fund throughout the city. However, according to the president of the Ravines Neighborhood Association Mindell Penn, this won’t be that easy.