Feds send foreclosure aid

Federal money is flowing into “distressed” neighborhoods like Springfield and Eugene.

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Neighborhoods across the country plagued with foreclosure are being aided by $3.92
billion as part of the federal Housing and Economic Recovery Act of 2008.

$19.6 million of that money is going to Oregon cities like Junction City and Cottage Grove to help buyers purchase foreclosed homes, a program that began in November.

The aim is to prevent “foreclosure wastelands” from forming in the state, said state housing Director Victor Merced when announcing the program.

Besides preventing deterioration — when several homes on a street or block are empty and unkempt — the program is intended to establish a floor under housing prices in hard-hit neighborhoods, Eugene housing officer Bob Briscoe said.

Read the full story at The Register-Guard.

{biztweet}Oregon Housing and Economic Recovery Act{/biztweet}