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Foreclosure Rescue Plan Takes Shape

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By Carl  Orth | The Suncoast News

Published: October 21, 2008

Bold measures are needed, a real estate leader told Pasco County commissioners today as a foreclosure rescue plan worth nearly $20 million took shape.

Greg Armstrong, president of the West Pasco Board of Realtors, asked more than 50 brokers and agents in the audience this morning to stand up.

"We must act swiftly to turn the tide," Armstrong commented about the trend of some 100 foreclosures per week in Pasco.

"We are in extraordinary times and it calls for extraordinary thinking," Armstrong remarked.
The real estate professionals favored devoting most of the federal funds toward assistance for buyers of foreclosed homes.

The original concept would have spent the bulk of the federal money toward the county directly buying some 182 "worst of the worst" foreclosed or abandoned homes, George Romagnoli, the county's community development manager, said. The eyesores drag down the values of other homes in the neighborhood.

Commissioner Michael Cox agreed with the real estate officials, who believe homebuyer assistance could aid thousands of Pasco residents, rather than a few hundred if the county simply buys foreclosed properties.

Pasco County qualified for the 17th largest amount in the nation under the Neighborhood Stabilization Plan through the U.S. Department of Housing and Urban Development.

Pasco's share of $19,495,805 is more than the combined share for San Diego, New Orleans, Boston and Nashville. The county will hold public hearings by next month, submit its plan to HUD by Dec. 1 and might receive funds by the end of December.

Banks and other lenders must agree to stricter standards on home loans through this program, Romagnoli noted.

County Administrator John Gallagher said the safeguards will help avoid another round of subprime loans to overextended buyers "so history doesn't repeat itself."

Carl Orth can be reached at 727-815-1068 or corth@suncoastnews.com.

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