Thursday, April 09, 2009

Neighborhood Stabilization Program will help prevent foreclosures from creating blight in neighborhoods

Yesterday Los Angeles welcomed the new Secretary of Housing and Urban Development Shaun Donovan (second from left), who visited South L.A. neighborhoods on a tour of foreclosed homes. His visit underscores President Obama's commitment to keeping Californians in their home, where more than 25% of all foreclosures nationally have occurred, and the innovative approach that the City of Los Angeles is taking to address this crisis.

Secretary Donovan emphasized the need for the federal and city governments to work together to stem the tide of foreclosures. The homes we visited will be purchased with funding from the federal government's Neighborhood Stabilization Program, designed to combat blight and prevent community destabilization by helping low- to moderate-income families purchase homes that have been foreclosed.

In many ways, Los Angeles is a model for the nation. We discussed our mutual efforts to help refinance and modify mortgages for families facing foreclosure, to keep renters from being evicted from foreclosed properties, and to stop communities from becoming blighted. He specifically noted the need to prevent fraud against homeowners looking for help with their mortgages. (If you are facing foreclosure and need help, be sure to use a qualified loan mortgage consultant. You can check for help.)