DEL.ICIO.USAtlanta area to get $70 million for foreclosure problems
Counties, city will submit plan for how money would be used
The Atlanta Journal-Constitution
Friday, September 26, 2008
About $70 million in emergency federal aid is being made available to metro Atlanta cities and counties to tackle the region’s foreclosure crisis, the U.S. Department of Housing and Urban Development announced Friday.
Latest Headlines:
• More Business news
• Search pending foreclosures
• Find metro gas prices
• Money-saving tips!
Markets »
The money, part of a $4 billion nationwide program approved by Congress earlier this year, will help local governments buy or redevelop distressed foreclosed properties “that otherwise become sources of abandonment or blight,” HUD Secretary Steve Preston said.
The $70 million will be spread among the area’s five largest counties and the city of Atlanta. The amount of grant money available to each jurisdiction varies, based on level of need determined by HUD. DeKalb County is set to receive the most money, $18.5 million, followed by Atlanta with $12.3 million.
Local governments have been asked to submit a plan to HUD by Dec. 1 detailing how they would use the money.
Preston said there’s not enough money available to provide a comprehensive solution to any community’s problems. Instead, the program is designed to help local governments target their most hard-hit areas.
HUD officials said they planned to release more information on Monday about how the program will work, including what types of properties will be eligible.
DeKalb County CEO Vernon Jones said he envisions the county becoming a one-stop real estate shop, where the government would buy foreclosed homes and provide mortgages for prospective buyers.
The details of the plan are still being worked out and must be approved by HUD. Jones said he’s optimistic it will make a difference.
With $18 million, “we can buy quite a few homes,” Jones said. “We can take our neighborhoods that are unstable and make them stabilized so they can become vivacious again.”
The county will carefully screen home loan applicants — a step Jones said many mortgage companies neglected to take in recent years. In addition, buyers will be required to meet with a consumer credit counselor before any deal is closed.
Numerous metro Atlanta neighborhoods have been hit by waves of foreclosures, creating a vicious cycle in which home values become further depressed, sparking even more foreclosures.
Foreclosure rates in metro Atlanta range from 9.9 percent in Clayton County to 3.7 percent in Cobb County, according to HUD.
Wayne Flanagan, a real estate broker with ReMax who specializes in bank owned property, said the market for foreclosed homes in some of the hardest-hit areas has deteriorated to the point where it can be hard to find buyers.
“Because of the sheer number of bank-owned properties and the condition of most of the properties, they’ve been reduced in value to the point where they cost less than most people’s cars,” he said. “But they are not in a condition where anyone can live in them, and it’s attracting a lot of vagrants. Even when they are boarded up, it’s a blight to the city.”
Flanagan said local governments moving in to buy some of these homes could help act as a catalyst to encourage others to get back into the market.
“Wisely done, it could be a very positive thing,” he said. “We’ll just have to see.”
HUD officials said the funds, known as Neighborhood Stabilization Grants, can be used in a range of ways. Governments can buy land or property, demolish or rehabilitate abandoned homes, offer down payment and closing cost aid to low and moderate-income buyers, as well as create “land banks” to buy, manage and later dispose of vacant land.
Clayton County Commission Chairman Eldrin Bell said the grant money should help expand the county’s ongoing effort to deal with foreclosures, including credit counseling and a “triage” system that directs families toward services that can help them avoid foreclosure.
Clayton is set to receive $9.7 million.
“It’s a significant shot in the arm,” Bell said.
Community allocations, with local foreclosure rates in parentheses:
- Atlanta: $12,316,082 (5.6%)
- Augusta: $2,473,064 (6.8%)
- Clayton: $9,732,126 (9.9%)
- Cobb: $6,889,134 (3.7%)
- Columbus-Muscogee: $3,117,039 (6.3%)
- DeKalb: $18,545,013 (6.4%)
- Fulton: $10,333,410 (5.4%)
- Gwinnett: $10,507,827 (4.6%)
- Savannah: $2,038,631 (6.0%)
- Statewide: $77,085,125 (5.1%)
Services »
Comments
By BigJuicy
Sep 27, 2008 7:20 PM | Link to this
How come over 75% of all home loans made to African-Americans with an income over $100k were subprime in 2007? Sounds like discrimination to me...
By AtlObserver
Sep 27, 2008 4:02 PM | Link to this
Most people don't realize that "subprime" or stated loans were available to people with excellent credit. In 2005, I discovered loan programs that had no income verification nor job verification. The only qualifications were you could show $120,000 in assets (cash, 401K, bank accounts, stocks, home equity, etc) and you had at least at 720 or 760 credit score. THAT'S IT! These were 100% loans (no money down) up to $1Million.
This mortgage mess is not limited to one race or area of town. Yes, it may be higher in certain areas, but there are $800,000-$900K foreclosures in predominately white areas too! Can't say that it's just black folk.
Alot of people took advantage of these unregulated programs in Atlanta and now we're paying the consequences.
By ATLObserver
Sep 27, 2008 4:00 PM | Link to this
Most people don't realize that "subprime" or stated loans were available to people with excellent credit. In 2005, I discovered loan programs that had no income verification nor job verification. The only qualifications were you could show $120,000 in assets (cash, 401K, bank accounts, stocks, home equity, etc) and you had at least at 720 or 760 credit score. THAT'S IT! These were 100% loans (no money down) up to $1Million.
This mortgage mess is not limited to one race or area of town. Yes, it may be higher in certain areas, but there are $800,000-$900K foreclosures in predominately white areas too! Can't say that it's just black folk.
Alot of people took advantage of these unregulated programs in Atlanta and now we're paying the consequences.
By ATLObserver
Sep 27, 2008 3:58 PM | Link to this
Most people don't realize that "subprime" or stated loans were available to people with excellent credit. In 2005, I discovered loan programs that had no income verification nor job verification. The only qualifications were you could show $120,000 in assets (cash, 401K, bank accounts, stocks, home equity, etc) and you had at least at 720 or 760 credit score. THAT'S IT! These were 100% loans (no money down) up to $1Million.
This mortgage mess is not limited to one race or area of town. Yes, it may be higher in certain areas, but there are $800,000-$900K foreclosures in predominately white areas too! Can't say that it's just black folk.
Alot of people took advantage of these unregulated programs in Atlanta and now we're paying the consequences.
By free
Sep 27, 2008 1:19 PM | Link to this
Ron you are not intelligent at all. Blacks only make up 12% of the US population. And incase you didn't know the majority of blacks nationwide are not homeowners. Trust me the US would not consider a bailout if there were only black families experiencing this problem.
However, leave it up to the AJC bloggers to make this about blacks. I guess blacks also wrote the loans, underwrote the loans, built the shabby houses, overpriced them (like they say, it's the market), sold them and made out like fatcats, packaged the loans into worthless securities, and now also need a bailout to the tune of $700B. Only in Georgia can this be perceived as a black thing.
By John
Sep 27, 2008 9:15 AM | Link to this
Wow - I don't remember being given better treatment when I applied for my mortgage, and I am white. I guess it's because my wife and I were both employed, had minimal credit card debt, no car payment, 25% down and FICO scores around 715. We also did our homework to make sure that if one of us lost a job, we would still be able to make our mortgage payment.
To those that feel they were targeted for being black, that wasn't the case. The only reason you are in trouble now, is because you were in over your head in the first place. You, not the mortgage broker, agreed to the terms of the loan. Was the interest rate too high?? That's because your credit score was lower than it should have been, your employment history wasn't what it should have been and either a low down payment or nothing at all.
Please, don't use race as the excuse for all of the loans that have gone bad.
I'll tell you what, I'll try to get a group of people organized, we'll call it "100 White Men" and we'll see if we can figure out a plan for the money from the government.
Wow, did you read that last paragraph?? How racist did that sound? Doesn't feel good, does it? There is discrimination everywhere, even against whites - I see it every day...at the CVS, Kroger, City of Atlanta offices, etc.
By Alecia
Sep 26, 2008 8:53 PM | Link to this
Kim-I did not say that I was a realtor. I am an investor. Someone didn't do well in reading comprehension. However, neither the realtors nor the investors preyed on anyone. The last time I checked, neither realtors nor individual investors were financing people and repackaging loans, atleast not at the level of the major financial institutions. It is between the banks and the people that took out the loans. You need to read up on a subject before you comment, and hopefully read it correctly.
Shajuan-It is sad when someone is voting for a party and can not even spell its name. Hopefully you will use some of the government programs and go back to school. Your writing is horrible. By the way a teaser loan is irrelevant to the amount of money put down. While you are on the internet please Google teaser rate loan. As I said before, these products should not have been offered to these people in the first place. If you bought your house with a FICO below 700 and had no down payment, you really were not qualified in the first place, and under pre-1999 standards, would not have been granted a loan. As far as race, the last time I checked Hispanic was a minority and you mentioned that minorities were suckered. Just here to say...You are the only one capable of keeping yourself from being suckered. Lender's rates are determined on FICO, down payment, and employment. If you have these 3 in place, shop around for your rates and terms, and quit blaming someone else.
As far as the democrats or "democrates" as you like to say encouraging foodstamps, watch the news. Pelosi presented a "stimulus package" yesterday, trying to get more foodstamps. We should not bail anyone out. Unfortunately, we are in this situation anyway. You can thank programs like Neiamiah(sp?) and the loosening of Freddie and Fannie guidelines, which began in the Clinton years. Just have to wonder what the government is going to do with all of those foreclosed homes. Guess we will have more section 8 if the dems. get their way. As we are discussing this $700 billion dollar bail out, let's not forget the $300 billion bail out for homeowners 2 months ago. The victims are the ones in foreclosure due to high unemployment or lowered property values, the taxpayers, or the people paying their mortgages.
By shajuan2003
Sep 26, 2008 6:36 PM | Link to this
alicia- i am not ignorant i have a 30yr fixed loan . i am a democrate and no i dont want no food stamps and any other free goodies dont forget what goes around comes right back around this market and your career feild is at fault preying on the ignorant and the uneducated and most of all trying to get the elderly to refinace to use the equity in their homes. by the way you are not stupid i hope not you know exactly what i was saying teaser loans ( no money down, 500.00 will get you into this house) shame on you and your crooked industries. blacks dont want no handouts whats latino got to do with the situations by the way research have been do over and over again blacks and latinos get charged outrageous rates. blacks account for only 12% of the US population so all of this couldnt have been because of these people. you make plenty of since up in your post i just don't like when the poor and the uneducated is taking advantage of regardless if they are black white, latino , everyone had their FAIR SHARE IN THIS MESS that we as taxpayers have to by for. also its not funny are jokable to laugh at the penniless leave this people its not the time or the place to be judging this people leave this people alone this ppeople are victims too. alecia last you are something else you have the nerves to be taking about these people these ignorant people have help some of your co-workers and etec. so know i guest you want to throw them away like a douche bag. shame on you thats all i have to say or wright to you. God will see these people through their storms. good day alecia!!!!!!!!!
By shajuan2003
Sep 26, 2008 6:34 PM | Link to this
alicia- i am not ignorant i have a 30yr fixed loan . i am a democrate and no i dont want no food stamps and any other free goodies dont forget what goes around comes right back around this market and your career feild is at fault preying on the ignorant and the uneducated and most of all trying to get the elderly to refinace to use the equity in their homes. by the way you are not stupid i hope not you know exactly what i was saying teaser loans ( no money down, 500.00 will get you into this house) shame on you and your crooked industries. blacks dont want no handouts whats latino got to do with the situations by the way research have been do over and over again blacks and latinos get charged outrageous rates. blacks account for only 12% of the US population so all of this couldnt have been because of these people. you make plenty of since up in your post i just don't like when the poor and the uneducated is taking advantage of regardless if they are black white, latino , everyone had their FAIR SHARE IN THIS MESS that we as taxpayers have to by for. also its not funny are jokable to laugh at the penniless leave this people its not the time or the place to be judging this people leave this people alone this ppeople are victims too. alecia last you are something else you have the nerves to be taking about these people these ignorant people have some of your co-workers and etec. so know i guest you want to throw them away like a douche bag. shame on you thats all i have to say are wright to you. God will see these people through their storms. good day alecia!!!!!!!!!
By corey
Sep 26, 2008 5:49 PM | Link to this
carolyn you just use racism as an excuse everytime something like this comes up. its getting old, its almost 2009, its not racism its facts. get some respect for yourself and stop using other peoples "racism" as your excuse, maybe its not the color of your skin but just your trash personality in general.
[1 2 3] next
Commenting is open from 8 a.m. to 5 p.m. M-F, except on Tuesday when it's open until 9 p.m.
Post a comment
*HTML not allowed in comments. Your e-mail address is required.
Request a comment be removed