New Placer County Recovery Act program offers hope for homebuyers
Market for bank-owned properties may feel boost
North Auburn, Bowman and Foresthill are among the areas Placer County is targeting in a new program to reduce the number of vacant, bank-owned houses and help low- or moderate-income buyers purchase residences. The initiative is part of a federally funded nationwide effort known as the Neighborhood Stabilization Program. The county has been awarded a $750,000 grant for its program from Housing and Economic Recovery Act coffers. Other areas in which the county is set to launch the program are Kings Beach, Tahoe Vista and Sheridan. The primary goal of the program is to stabilize neighborhoods hard hit by foreclosures by acquiring vacant, bank-owned houses, renovating them if necessary, and helping residents with limited incomes purchase the homes. Loans also can be made directly to homebuyers to purchase houses already listed for sale directly from banks. In Placer County, the home-purchase assistance will be available to residents with low or moderate incomes. To meet moderate-income limits, a four-person household must have an annual income of no more than $87,350. Each participating household will be required to make a 3 percent down payment and line up financing from a private lender for part of the home-purchase price. The program will provide gap loans up to $150,000 to cover the rest of the purchase price. The loans will be shared-equity, second deeds of trust that do not require monthly payments and generally will not be repaid until homes are sold. A release from the county states participants do not have to be first-time buyers. To be eligible for acquisition, bank-owned homes must have been vacant at least 90 days. The federal government designated which areas are eligible to participate in the program, using data on such factors as foreclosure rates and the numbers of sub-prime mortgages in each area. More information is available at 530-745-3150.
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It looks, sounds and acts like Fannie Mae. Hopefully it won't run into the same problems.
Okay, so the program is "supposed" to help low to moderate income people buy a house in Placer County. We've had these kind of programs before, somehow when they are "reworked" the low income people, once again, are unable to buy a house. Placer County has a number of ways that it 'limits' the number of low-income people who can live here, particularly in Auburn. First, in the Fine Print, of the program is the Requirement that a family needs to have 3% down; now, we're talking a minimum of $6000 to $10000 CASH, in order to begin the process. When I said CASH in the Bank, that's exactly what's required -- Oh, and they are particular about HOW the cash got there; it cannot be a second loan, or money from a relative -- it has to be your own Cash. One would think that 99.99% of the "low-income" people do not have that kind of cash laying around. That's the First layer of buracracy that pushes low income people away from available housing. Then, incredibly, several years ago when Placer County advertised that North Auburn (Lariat Ranch) had homes available on a special program for first-time homebuyers -- the Fine Print, let us know that they were only accepting teachers and fire-fighters, or the like. Isn't this flat-out Discriminatory -- I mean, these are Federal funds that Placer County is using -- WHERE do they get the audacity to "limit" WHO can apply for them? I really don't thing much will change this time around.
Maybe more federal funds should have been used to modify people`s loans, so they would not have lost their homes in the first place. There was tons of money designated for that purpose, yet only 500,000 mortgages had been modified as of October 09. Unless they are selling these bank owned homes for a fraction of the median home price in this ares, I don`t see how low income folks would be able to afford that mortgage, taxes an insurance.
Also, I wonder when the responsible people (who still work, pay their bills, saved their money,did not buy homes or cars they couldn`t afford, don`t have five + kids, in short: folks who don`t fall in the category of Obama`s "95%" of the population stimulation) get a bonus or a reward????
What is wrong with 3% down? If you can't come up with a least 3% down maybe you are not ready or responsible enough for a loan. If they had enforced this in the past maybe I would not have lost at least 40% of my net worth mostlly because of government programs. AS a retired construction worker who worked my whole life for every thing I have I hope we don't go down that path again. Auburn has its share of low income housing already.
watchit I agree, no more handouts, if they dont have 3% no house, even that is to little.
Here's an idea, if the banks want to sell the empty houses they should LOWER THE PRICE!