POSTED  ON JANUARY 22nd, 2009  
Milwaukee Responds to Rising Foreclosures

Cities across the country have been impacted by the negative effects of rapidly escalating mortgage foreclosures. The foreclosure problem is affecting both new and long-term Milwaukee homeowners. Whether it is due to a job loss, illness or unsuitable loan product, thousands of homeowners have been faced with the potential loss of their homes.

It is important for homeowners to act quickly in seeking assistance, communicating with their lender or a non-profit counseling agency as soon as possible. Often homeowners will delay reaching out for help, in turn reducing the options available for assistance. Certified homebuyer counseling agencies offer foreclosure counseling services and will act on behalf of the homeowner to assist in loan modifications or budget counseling. The key is act immediately. Click on the link below for a list of resources available for homeowners facing foreclosure.

Help for Homeowners faced with the inability
to make mortgage payments or facing foreclosure.

Neighborhood Stabilization Program Funding (NSP)

The U.S. Department of Housing and Urban Development (HUD) recently approved the City of Milwaukee’s plan for utilizing its $9.2M allocation of Neighborhood Stabilization funds authorized under the Housing and Economic Recovery Act of 2008. Congress has directed that these funds be used specifically to address currently vacant and foreclosed properties. These funds can not be used to assist homeowners currently at risk of foreclosure.

The City will use its NSP funding to assist homeowners and investors purchase and rehabilitate foreclosed homes, expand the City’s stock of quality affordable housing, establish a land bank, and demolish abandoned and blighted properties. Strategic use of NSP funding is only one component of the City’s response to the foreclosure problem and will complement initiatives to prevent future foreclosures and assist homeowners currently at-risk of losing their homes.

Please check back in February for details on how homebuyers and investors interested in purchasing a foreclosed property can access these resources.