Upcoming Foreclosures

Should stimulus funds be used to allow developers to buy foreclosed houses?

The stimulus provided $2 billion for HUD's new Neighborhood Stabilization Program that provides funds to state and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities. These funds are in addition to the $3.9 billion provided for the same program in the Housing and Economic Recovery Act of 2008 (enacted last July). While HUD has yet to distribute the $2 billion provided in the stimulus, a recent review by the Los Angeles Times of a similar program launched in 1998 indicates what kind of results we might have to look forward to: Congress launched the program in 1998 to clear the Department of Housing and Urban Development's books of foreclosures and provide affordable housing. Local governments would buy the homes for $1, fix them up and resell them at a discount to poor families, who would get a chance to put down roots in the community. More than 2,300 homes have been sold by HUD for $1 each nationwide, with 326 in California. Nearly half of the homes in California were bought by companies or individuals who typically resold them at a much higher price. The city of San Bernardino bought more Dollar Homes -- 62 -- than any other city or county in the state. But San Bernardino officials could not provide The Times with any account of what happened to the homes after they were sold. Using county property tax and assessor records, federal bankruptcy files and real estate listings, The Times tracked every property sale to San Bernardino under the program since 2000. Among the findings: * At least 43 of the 62 homes were sold to housing contractors and investors. Within months after purchase, nearly all were resold, and for an average of three times the original sales price. Despite their track record, San Bernardino received $8.4 million from the first $4 billion for the Neighborhood Stabilization Program. Source: http://www.latimes.com Great use of stimulus money yet again!

Public Comments

1. HELL NO.
2. ands thats why if you are smart you stop people doing that
3. Yes, this keeps the tax base intact as well as prevents a host of other problems already described in the article. The fact that houses were re-sold is excellent as that stimulates the local ecnomies and also keeps property values intact for the neighbors...
4. No way. Developers are part of the reason there was a housing collapse. They overbuilt by using cheap illegal immigrant labor.
5. it's working for diane feinstein's husband
6. If they were TRULY worried about the American people, they should have given that money directly to the taxpayers. It would have been cheaper and more effective. According to the 2007 IRS Data Book, there are approximately 134 million taxpayers in the US. They could have given each taxpayer in the US $15k and only spent $2 trillion. People would have been able to keep their homes, and the economy would have been stimulated. But, NO... instead all this money went to bankers and special interest... you know... the new American way.
7. It's OK as long as 50% is refunneled back into Obama's Campaign funds