Tuesday, January 18, 2011

More Federal Government stupidity regarding foreclosures?

Talk about Federal money with strings attached.

Only about half of the $4 Billion in Federal funds available to communities to redevelop foreclosed properties has been used.   As of 3-16-2010 about 40% has been committed. Some officials say the ever changing rules are to blame for their reluctance to participate as they are prevented from buying properties at less than 1% of appraised value.  With properties available for alot less, local communities are prohibited from purchasing the property at the reduced rate.  This is part of the Neighborhood Stabilization Program (NSP). If this is true, why are we doing that?  Does that make any sense whatsoever?

I understand that the Federal government wants to do something - but what can it do but to continue to screw up and cause everyone to stumble over each other in the attempt to move the economy forward.  I guess stumbling forward is considered successful?

Source:  MDJ, 4-2-2010, 5B

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