There were a combined 3,780 Fort Worth foreclosure homes from the period September 2007 to October of 2008. Specifically, most foreclosed homes in the city are located outside Loop 820, in seven ZIP codes where real estate and residential development are concentrated. This is not surprising as foreclosures are always expected to hit such areas, where development is on-going. In fact, in Fort Worth, numerous new homeowners fall into foreclosures in the first five years of their new home purchases.
Across the US, the Housing and Urban Development department has been actively rolling out its Neighborhood Stabilization Program. Of course, Texas is covered by the program. Fort Worth is set to receive up to $6.2 million in government funds for the city to curtail its rising foreclosed homes rate. However, the city government is planning to take a different scheme in using the federal rescue aid.
Instead of buying foreclosed homes outright, the City Council has decided to distribute the amount as loans to needy homebuyers and homeowners in the area. About $5.6 million of the amount to be provided to the city would be used to fund loans of $20,000 increments to as many as 280 homeowners and homebuyers. The funds will be provided to buyers to finance down payments, costs and repairs of Fort Worth foreclosed homes.
The loans will be targeted to the neediest families in the city. More than half of the loans would be targeted to low-income households, or those earning less than $32,300 annually. The rest will be given to families with earnings median of about $77,500 annually. Homeowners who have been living at their foreclosed homes for more than five years will also be prioritized.
