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“DC Foreclosures Jump Nearly 40 Percent From May to June”

An article in the Housing Complex column by Ruth Samuelson points to the alarming rise in foreclosures in DC:

Obviously, Washington D.C.’s still not overwhelmed like some places, which have so many abandoned homes sales prices are averaging $10,000.

But today, RealtyTrac reported that foreclosures had jumped 39.46 percent between May and June 2009 in DC. The total number of filings was 417.

The the rise in foreclosure underscores the need for action and leadership from our public officials.  Though the numbers are not as significant as our neighbors in Northern Virginia and Prince George’s County, this is a frightening trend that cannot be ignored.

bottom-comic

HAT’s suggestion to the City Council and other public officials is that HPAP (Home Purchase Assistance Program) can be utitlized to stabilize the bottom third of the housing market, thus securing the real estate values in the city.  Sadly, HPAP remains woefully underfunded.  In FY2010 budget, HPAP has been scaled back to accomodate less than 300 borrowers, reduced by 40% of its historic annual capacity.

Here is testimony by Frank Demarais at a recent public roundtable on foreclosures in the District.

Frank Demarais testimony on HPAP

TESTIMONY OF FRANK DEMARAIS, VICE PRESIDENT, MANNA MORTGAGE

ROUNDTABLE ON THE IMPACT OF FORECLOSURES ON HOMEOWNERSHIP AND AFFORDABLE HOUSING IN THE DISTRICT OF COLUMBIA

May 28, 2009

Good morning and thank you for opportunity to comment on the serious impact the growing foreclosure problem will have on District Homeownership and Affordable Housing. My name is Frank Demarais, and I am vice president and general manager of Manna Mortgage, the District’s only non-profit mortgage company.

The increasing numbers of foreclosures in the District have already wiped out significant amounts of home value and undercut hard fought growth in financial stability for many current District residents. Continue reading