11/19/08 Help is on the way for homeowners

By Charles Sercombe

Finally, some good news for financially-stressed homeowners.

Not only are local banks and other mortgage holders bending over backward to prevent further home foreclosures, now the federal government is stepping in.

Last week, two new programs were announced that will come to the rescue for some homeowners and communities.

The Neighborhood Stabilization Program aims to help would-be homeowners get financial assistance and loans that in some cases won’t have to be repaid if the homeowner remains in the purchased house for at least five years.

For communities, the federal grant will allow cities to purchase homes for cheap in order to either demolish them or renovate and prepare them for sale.

Details of this plan are still being worked out. Hamtramck is expected to be in line for federal assistance through the Wayne County Economic and Neighborhood Development Department.

The county will receive almost $26 million to disperse to cities.

Hamtramck City Manager William Cooper said the money is expected to be disbursed sometime in February.

He said there are currently 15 houses slated for demolition. He said he hopes to also purchase more foreclosed houses and either demolish them if they are beyond repair or fix them up to sell at a low price.

“This gives the city a golden opportunity to sell houses at an affordable cost,” Cooper said.

Cooper said the city has received houses for $1 each from the state after going through the foreclosure process. Those houses, he said, are too damaged to repair.

“All they are good for is a bulldozer,” he told the City Council last week.

He said often the houses aren’t even worth the $1 paid for them.

It costs $6,000 to $7,000 to demolish a house.

Another new federal program, called Streamline Modification Program, will rescue homeowners who are close to losing their homes. The Federal Housing Finance Agency is working with banks and mortgage servicers.

The main focus is to allow homeowners to renew their mortgage terms at a lower rate.

To qualify, you must live in the house in question and have missed at least three mortgage payments.

For more information, contact your mortgage servicer.

News of the local financial bailouts comes as Wayne County recently published its lists of properties facing tax foreclosure. There are 132 Hamtramck properties in danger of being foreclosed unless the property owners settle up on delinquent taxes by March.

Some of the properties listed may have already been paid up before the list was published.

Included in the list are properties owned by former and current city officials and some prominent businesses. The Phoenix Apartment building on Caniff is included, which could mean a huge disaster for the tenants living there.

If the building is foreclosed, tenants could face eviction.

The Carpenter Medical building on Carpenter is also facing foreclosure.