Thread: Fairfax County In Virginia Buys Foreclosed Properties For Mi

Fairfax County In Virginia Buys Foreclosed Properties For Mid-Income Families
July 1, 2008 2:46 p.m. EST

Vittorio Hernandez - AHN News Writer
Fairfax, VA (AHN) - Despite a $220 million deficit for the fiscal year, Fairfax County in Virginia is going beyond counseling in addressing the housing crisis besetting the nation. The country allocated $10 million from tax revenues to purchase up to 200 foreclosed homes for mid-income families.

At the onset, 10 houses will be bought by the country, and the 190 would be purchased by qualified buyers through government-backed, low-interest loans. The bulk of the financial assistance would be extended to first-time home buyers earning up to $75,600 a year or 80 percent of the median income in the county. A $385,000 cap would be placed on home purchases, which excludes condominium units.

The man behind the idea is Gerald Connolly, chairman of the Board of Supervisors of the county. "Fairfax, like the rest of the country, is facing a foreclosure crisis that's unprecedented... The county has to use its resources and influence to try to stem the tide," Connolly said, quoted by the Washington Post.

The program, however, was questioned by some of his colleagues. Supervisors Pat Herrity and Michael Frey rejected the program because they believed the market could manage the mortgage crisis by attracting private homebuyers to the foreclosed properties. Supervisor John Foust suggested helping Fairfax families about to lose their units instead of providing financing for the purchase of homes already lost.

Connolly insisted the program could solve the housing problem in the county and even serve as a model for the rest of the U.S. He plans to extend the program further if Congress passes the mortgage relief bill.

http://www.allheadlinenews.com/articles/7011472369

Well other than helping Gerald Connolly's relatives unload their investment properties 10 million is'nt going to do squat to address anything.

Originally Posted by lateone

Well other than helping Gerald Connolly's relatives unload their investment properties 10 million is'nt going to do squat to address anything.

Yeah , I was thinking something like that myself . Why don't they help the home owner "Before" they are Foreclosed on ?

No way should they help anybody pay their mortgage! Let the market work it out. People who pay their mortgages shouldn't be forced to pay their neighbor's, too.

Originally Posted by AngelaTC

No way should they help anybody pay their mortgage! Let the market work it out. People who pay their mortgages shouldn't be forced to pay their neighbor's, too.

pretty tuff outlook with a country on the downslide . If Bushco can bail his banker friends with taxpayers dollars the home owner should get help also !

LENDERS SHOULD BE MADE TO BEAR THE BRUNT OF THIS MESS. THEY KNEW EXACTLY WHAT THEY WERE DOING WHEN THEY LENT TO SOME OF THOSE RISKY BORROWERS.

THEY SHOULD FREEZE THE INTEREST RATES ON MORTGAGES AND HAVE A MORATORIUM ON FORCLOSURES. THIS WOULD AT LEAST KEEP ENTIRE NEIGHBORHOODS FROM BEING HALF EMPTY. BECAUSE THIS IS ALSO AFFECTING THE PROPERTY VALUES OF HOME OWNERS WHO HAVE BEEN IN THEIR HOMES FOR YEARS AND HAVE MORE TRADITIONAL LOANS.

TAXPAYERS SHOULD NOT BE EXPECTED TO SHOULDER THIS.

AND THE HOME OWNERS ....THE RISKY ONES.....I THINK SOME OF THEM WERE GREEDY, BUT SOME WERE NAIVE. THEY WERE LED BY GREEDY LENDERS.

THE TRUTH IS THAT GREEDY OR NAIVE BORROWERS COULD NEVER HAVE GOTTEN THE LOANS IF LENDERS HAD ACTED RESPONSIBLY. AND THE LENDERS DO HAVE THE INFORMATION AND KNOWLEDGE TO KNOW THE CONSEQUENCES OF WHAT THEY WERE DOING.

SO LET THE LENDERS TAKE THE HEAT.