Changes to federal foreclosure program announced

AP via Google News ^ | April 2, 2010 | By TAMARA LUSH

[Oldeconomybuyer]

ST. PETERSBURG, Fla. — The federal government announced Friday that it is relaxing some rules to make it easier for communities to spend funds on redeveloping abandoned and foreclosed properties.

The changes, effective immediately, will allow cities, counties and states to buy properties in mortgage default and uninhabitable homes with lingering code violations through the $4 billion Neighborhood Stabilization Program.

The program was started in the midst of the nation's foreclosure crisis, but a year later about a third of more than 300 local governments that got grants have barely made a dent in them, according to a recent report from the U.S. Department of Housing and Urban Development.

Some city, state and county officials say they have had trouble spending the grant money because federal rules are confusing and cash investors have often outbid them for residential properties.

HUD also expanded the definition of an abandoned property to include homes where no mortgage or tax payments have been made for at least 90 days or a code enforcement inspection has determined that the property is not habitable and the owner has taken no corrective action.

[Oldeconomybuyer]

Governmental waste, fraud, and abuse in action.

[RC one]

"Now a community can buy a property that is at least 60 days delinquent on its mortgage if the owner has been notified, or if the property owner is 90 days or more delinquent on tax payments"

and what will they do with these properties purchased with tax payer dollars I wonder?

[Neidermeyer]

So we’re throwing due process out the window AGAIN.

[Wisconsinlady]

So Obama tells the banks they have to stop their foreclosing, but the municipalities can just on someone’s property in only 90 days?

[woodro43]

Translation: Buy up propertites next door to you, give house to ghetto rats along with new hybrid cars all payed for with your tax $, you put up with noise and trash to avoid lawsuits, neighborhood turns into new ghetto, you foreclose and leave, government continues trend until it owns majority of U.S. property.

Result: Real Estate phase of socialism complete

[Oldeconomybuyer]

...and what will they do with these properties purchased with tax payer dollars ...

Pay their brother-in-law 10X the normal labor rate to fix them up, then sell the property at 1/4 market value to the Mayor's niece Ja'Niqua.

[TheDailyChange]

What a JOKE!

[tumblindice]

“homes where no mortgage or tax payments have been made for at least 90 days or a code enforcement inspection has determined that the property is not habitable”

But wait a second—here in Indiana by statute a plaintiff has to wait at least 90 days *from the date of filing the foreclosure Complaint* before a sheriff’s sale, and zoning violations are almost always just fines, not forfeitures and ...

You didn’t hear what I said: “I’m from the federal government and I’m here to help you.”

[RC one]

90 days late on your property taxes and your home gets bought by the government and given to people who have never paid a dime in property taxes. Nice.

[RC one]

or turn it into low/no income government subsidized housing

[funfan]

I love the language the government uses it is very telling
“It just broadens the pool of available properties that local governments can target,” he said. “This opens up more possibilities for them.”

So now if you are 90 days late on your property tax your home is on their radar.