PRESS

WASHINGTON – June 16, 2008 – In an effort to stabilize declining home values in certain neighborhoods, the Bush Administration today announced a temporary policy that will extend government-backed mortgage insurance and allow for the immediate sale of vacant foreclosed properties.

For one year, the Federal Housing Administration (FHA) will insure foreclosed properties marketed and sold by property disposition firms on behalf of lenders. The properties, which must purchased by owner-occupants, will no longer be subject to the customary 90-day waiting period.

“A glut of foreclosed and abandoned homes harms neighborhoods, frustrates homebuyers and delays a community’s recovery,” said Brian D. Montgomery, Assistant Secretary of Housing-Federal Housing Commissioner. “The action we take today will allow homebuyers to purchase these homes in much greater numbers and ease the excess supply of unsold homes in neighborhoods across the country.”

FHA’s new temporary policy will help stabilize neighborhoods experiencing high rates of foreclosure by reducing the inventory of unsold properties. Many foreclosed properties remain vacant for months, inviting vandalism and reducing values of surrounding homes. To address that sizeable inventory, lenders have hired companies that specialize in the marketing and disposition of foreclosed homes. It’s reasonable and appropriate that these firms have the ability to sell the properties to borrowers using FHA financing.

With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This prohibition is intended to prevent property flipping, a predatory practice that strips a home of its equity before being quickly resold at an inflated price to an unsuspecting buyer. FHA’s new policy will permit the immediate sale of foreclosed properties to legitimate borrowers wishing to use FHA-insured financing.

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Taking fundraising to tropics

By AIMEE CHOUINARD CORRESPONDENT
Published Wednesday, June 11, 2008 at 4:30 a.m.
Last updated Wednesday, June 11, 2008 at 2:20 a.m.

Siesta Key Kiwanis Club held its fourth annual Tropical Nights Fundraiser on Saturday at the Sarasota Yacht Club.

This year's proceeds from the dinner, dance and auction went to The Wellness Community of Southwest Florida.

TWC is building a new site for its free programs of support, education and hope for cancer patients and their families.

The new building will include a Children's Expressive Arts Studio for children going through cancer treatment or who have a parent with cancer.

The donation is part of a $50,000 pledge made by The Kiwanis Club to TWC and its Building Hope capital campaign fund.

Four checks were presented to Jay Lockaby, executive director of TWC, totaling $10,000.

The Kiwanis Club contributed $7,000, and three $1,000 checks came from individual members Russell Thomas, Richard Graveley and Chet Wanvig.

"Our purpose is service to children, so The Wellness Community's Children's Expressive Arts Studio is the perfect beneficiary for the Kiwanis Club's donation," said Nancy Sloan, president of the Siesta Key Kiwanis chapter.

Attendees enjoyed tropical food and beverages, live music, dancing and a large silent auction.

Prizes were awarded for the best tropical attire and best themed table.

For more information on Kiwanis Contact Brooke O'Malley Incoming President 2008-2009 South Sarasota Kiwanis