In an effort to stop foreclosures, HUD has decided to award grants to 9 Alabama state agencies. This decision, coupled with the lowering offorclosed homes taxes and penalties, will surely drive the foreclosure number down. The said grants will total $435, 484.
Last year, there were 19, 896 foreclosure cases filed in Alabama, includingforclosed homes in Toney, Alabama, as evidenced in the report from the Birmingham HUD office. Since each foreclosure filing can be equated to an entire family in trouble, the department believes the fund will surely help reduce the number offoreclosures in Alabama, and, consequently, families avoid foreclosure.
With the reduction of forclosed home taxes and penalties, the said funding from HUD hopes to provide assistance to about 10, 000 mortgage borrowers on the brink of foreclosures. The grants also target the 22,000 homeowners who are likely to default on their housing loan payments and 5,000 homeowners who have neglected to pay their mortgage dues at least once in the last year.
The funds from the HUD will be broken down as follows: $43, 374 to Jefferson County Housing Authority so that they will have funds for their counseling programs, and $29, 097 for the Committee for Economic Opportunity in the same county to be used for assisting homeowners looking to avoid foreclosure with a loan modification program.
On the other hand, buyers interested in a foreclosure home will be pleased to know that the federal government has become quite lenient with regard to the forclosed home taxes and penalties. In fact, in most states, lenders who participate in loan modification and short sale as well as buyers of distressed properties receive incentives. Obviously, the federal government hopes to improve home sale activity and eventually raise home market values, which will pave the way for the housing market's recovery.
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