Tucson Receives Rehab Money to Sustain the Surging Foreclosure Situation
Posted in Foreclosures, March 11th, 2010
Arizona foreclosure observed a rise in the year 2009 due to the continuing increase in home foreclosures in Tucson in the same year. With foreclosure activities continuing to surge in the Arizona including Tucson, these areas are in high demand to investors who are spending a lot of money to get the listings for the sale of the bank-foreclosed homes.
In 2009, Tucson foreclosure filings shot up by 42 percent in comparison with 2008, and a very sharp rise of 201% could be seen from 2007, as 12,798 foreclosure filings were reported in 2009. It was 3 percent of the total residential foreclosure filings in the city. A total filings of 163,201 has marked a sharp rise of 40 percent over a one-year time; a record. This was a 6.12 percent increase considering the total units of the state. In comparison with the filings of 2007, this marked a sharp increase of 323.2 percent!
Ranking second after Nevada in its foreclosure rate in 2009, Arizona is one of the worst affected states after the start of the economic downturn. Going against the current declining trend of foreclosure rates across the country, Arizona came second in January this year with more than 21,000 filings. This unpleasant foreclosure situation across the state is making the federal government concerned about the state. To combat with the recent foreclosure situation, Arizona and some other worst affected states received federal assistance worth $1.5 billion. With a sharp decline in the home value, President Obama announced more funding for the state.
The Urban Development Department and Federal Housing also helped the state to control this foreclosure situation in Tucson. $4.2 million received to buy and renovate foreclosed homes to ensure that it falls under the affordable housing and rental program and for its neighborhood revitalization program.
Pima County, with its county seat Tucson, received $22.165 million from the HUD as part of the second round of the Neighborhood Stabilization Program. The nonprofit Chicanos Por La Causa the city of Phoenix, Pima County – were the three major cities that received federal funds.
The American Recovery and Reinvestment Act program offered a total of $56.3 million in funding to Tucson since the economic downturn began, and since receiving the money, it bought about 50 foreclosed homes. The city is expecting buy over 80 such homes and convert them into the affordable housing program.
