The Real Deal Miami

Disappointed by federal efforts, local leaders try to ease foreclosure crisis

November 20, 2008 06:11PM

Floridians facing foreclosure had high hopes last summer
when Congress passed the Housing and Economic Recovery Act, which
promised
mortgage restructuring assistance for homeowners. But communities with
significant numbers of foreclosures instead received federal funds to
buy and refurbish
foreclosed homes — money that only allowed for the purchase of less than
1 percent of the units in foreclosure in Miami Gardens. Local leaders are working on
grassroots solutions, such as letting cities use the federal
foreclosure purchase money to leverage lenders, who will then help
borrowers avoid
foreclosure.