Federal aid to help Aurora purchase foreclosed homes

Aurora has received $3.1 million in federal funds to assist in purchasing and rehabilitating foreclosed homes in the city's hardest-hit areas.

Representatives from the U.S. Department of Housing and Urban Development delivered the check Thursday. The money was made available as part of the federal Housing and Economic Recovery Act of 2008.

HUD representative Ray Willis said six other Illinois cities and seven counties, including Kane, also are receiving a portion of that $127 million pot. Kane will receive $2 million.

Mayor Tom Weisner said the money will immediately be put to use purchasing foreclosed homes that have been empty for at least 90 days.

"We have to take every step and every measure that we can to ensure the strength, vitality and viability of our neighborhoods in the face of a difficult time," Weisner said. "When those homes are vacant they become a possible source of issues in the neighborhood, whether it's the visual issue of blight (or) the encouragement of criminal activity."

Michael Kamon, the city's director of neighborhood development, said foreclosures in the city are up 50 percent from 2006.

City staff has begun reviewing the list of nearly 3,000 homes currently in the foreclosure process. Of those, Kamon said he hopes the city will be able to purchase between 14 and 16 at a reduced price and begin bringing them back up to code.

The city also is hoping to partner with area lenders to assist with the financing.

Kamon said his department will focus on areas that have been deemed "high risk" because they have had several foreclosures or because of high percentages of risky loans.

"We'll put $1.75 million into the homeowner part of the program and $1 million into the rental program so we'll help both of those markets," he said. "Obviously our homeowner portion is larger and spread throughout the city, but we've focused our rental allocation in a much smaller area in the downtown and on the near east side."

How you can prevent foreclosure

• Contact your lender or mortgage company immediately. Banks may be flexible in renegotiating the terms of your financial arrangement, but they will never know that you are serious unless you, as the current property owner, make that first move.

• Contact one of the city-sponsored financial counseling agencies identified here: Family Counseling Service: www.aurorafcs.org/cccs/

or

Joseph Corporation: www.josephcorporation.org

• Log on to the Illinois Housing Development Authority: http://www.ihda.org/ViewPage.aspx?PageID=261

Source: City of Aurora