Real Estate Foreclosures » Local Governments Taking On the Foreclosure Crisis

Local Governments Taking On the Foreclosure Crisis

Posted on July 30, 2008
Filed Under Foreclosures | Leave a Comment

It is probably now clear to most individuals that if there is going to be a real solution to the foreclosure mess, the solution needs to be creative and come from the local level. The federal government has done little accept to offer tax breaks for corporations and more power that is centralized. These non efforts have been called foreclosure relief. Instead of taking money from renters to assist victims of foreclosure, Congress is taking money from renters and those who have homes in foreclosure to gift automakers and airlines.

The good news is some concerned citizens and local governments have started to put methods into place that deal with foreclosures in a creative way. The solutions vary from tearing down homes that have been abandoned and turning them into parks for the community to refusing to hold sheriff sales. Some solutions have also been fining a bank that allows homes to go into disrepair. Cities and neighborhoods are the ones that are working that hardest to stop foreclosures. In these cases, some are gaining very important victories against mortgage holders.

In Ohio, the city is tearing down whole city blocks containing abandoned homes and is turning them into parks. This is in reaction to the exodus of people from the area. By converting these blocks into parks they are helping to stop the decline in home values that are caused by foreclosures and abandoned homes. This also helps alleviate vandalism and crime in the community. It is a great idea to return the land to a natural condition and the additional land may be of use as neighborhood garden. High transportation and food prices are a part of everyday life now so if an area can grow food on its own it will be able to sustain itself for a long time.

Since cities have started to become ghost towns, suburban areas fall victim to crime, and property values continually drop, local governments will have to do something to stop the wealth from leaving the area. Local government officials such as sheriffs can gain popularity and gain a favorable public opinion if they stand up for homeowners. If local governments stand up the community will win over banks.

The city of Cleveland targets owners of foreclosed homes after a public home auction. The city will fine any homeowner who does not keep their home in good condition. Lenders who gave out predatory loans and quickly foreclose on homes and who are now enjoying tax breaks may have to deal with some new issues.

Because of predatory lending practices, there are many victims. Towns are falling victim to crimes and condo projects are standing half-built. While the government concentrates on making sure corporations are taken care of, local governments are finding solutions to foreclosures in their areas. There are many towns that are implementing ways to keep wealth in their communities. There is a lot to learn from these towns as they undertake what many believe the federal government is not handling at all.

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