Foreclosures are something of an unfortunate, practically everyday occurrence these days. For whatever reason, whether it was simple homeowner ignorance or unfavorable mortgage terms, South Florida homes are now becoming frequent foreclosure properties. Thankfully, real estate agents, corporations and organizations around the country have been using their deep pockets and their expertise to stop foreclosures and give homeowners a break.
The Ford Foundation is considering using its more than $11 billion in assets to develop and fund programs where homeowners who’ve entered into unmanageable mortgages can hopefully have the terms tweaked to something they can actually manage. This strategy particularly targets those people who are allured by the “no down payment” perk, don’t realize what they’re getting into, and then end up payments they can’t meet.
Living Cities is a group known for their efforts in reviving inner cities and is also considering a similar approach like the Ford Foundation by funding programs intended to keep homeowners in their homes and making use of properties that have since been abandoned. By raising nearly $10 million, they’ll be able to use this money towards long term loans that are much more flexible than standard mortgages.
Other groups have considered loaning significant money to states with high foreclosure rates and/or abandoned properties with the intention that these states will buy these distressed properties. Using the same idea as Living Cities, setting aside money where struggling and delinquent homeowners can refinance into a mortgage they can actually afford is another idea being tossed around.
Considering the staggering number of properties in foreclosure and the less than favorable state many South Florida homeowners are in financially, these philanthropic efforts and how effective they may be in the long term are debatable but certainly welcome. Could any of these end up working more effectively than others and actually help Miami real estate slowly return to better shape?