HUD Foreclosures shine
The persistent homelessness that has been created by the foreclosure crisis enveloping the country sees some relief in the form of statistics. From 2005 - 2007 homelessness has reduced by 30%.
The Interagency Council on Homelessness which is part of the US Department of Housing and Urban Development released a report after assessing the situation. Two reasons for the decrease were cited.
The first is because from using resources for making provisions for emergency housing the focus has shifted to provide supportive housing. The new housing is for individuals facing addiction and mental health problems, and is to be in permanent apartments.
The second is the usage of more reliable and extensive methods being employed to collect data.
The Interagency Council on Homelessness’ executive director, Philip Mangano, said that this has to be the largest documented reduction of homelessness in the country’s history.
Many supporters advocating the cause of homelessness, Mr. Mangano included, are expressing a note of concern though. With the analysis based on data from 2007, it does not reveal the complete impact of the current situation of homeowners involved in Bank and HUD foreclosures.
In the summer of 2008 the Congress passed the National Housing Trust Fund Act as part of the bill which is to deal with the current foreclosure crisis, which will build low income housing to be used for rentals.
National Coalition for the Homeless’ executive director, Michael Stoops, says that since 1990 this as the first significant affordable housing act.
Homeowners facing foreclosures will also see relief as part of the housing bill. Around 400,000 homeowners are to benefit from the part of the bill which will allow them to work with their lenders in refinancing their existing mortgages. The federal housing administration has been allowed to spend up to $300 billion in insuring refinanced loans under this scheme.
Relief is also there for people who have gone through HUD foreclosures or lender placed foreclosures. Local communities are to receive funding to refurbish, renovate and sell homes that have been previously foreclosed.
Instances of local community programs where the foreclosed home have been bought by non profit organizations and leased to the previous homeowners, giving them another chance at ownerships, have started surfacing.
