Denver Moving to Prevent Foreclosures and Stabilize Neighborhoods

Tax Relief to Qualified Homeowners and Buyers

T he Denver Office of Economic Development (OED) has just announced a new program to help at risk home owners stave of foreclosure and help stabilize home values in neighborhoods heavily affected by foreclosures. This program, starting in May 2009, is being funded with $25 million from a private bond issuance and the Housing and Economic Recovery Act of 2008 .

Mortgage Credit Certificates for Homeowners and Buyers

At risk homeowners, those with high-cost or sub-prime loan, will be eligible for mortgage credits, which provide a tax credit for mortgage interest. Normally, mortgage interest is considered a tax deduction but this program will offer a dollar-for-dollar tax reduction . While the OED press release says this program also applies to buyers, details weren’t released.

On the face of it, I’m not sure how tax credits are going to help homeowners needing immediate assistance since tax credits will only be available once a year, when a homeowner files their taxes.

Denver Helping with Your Fixer-Upper

The City will also help purchasers in heavily affected areas rehabilitate homes. These funds are available under the Neighborhood Stabilization Program (NSP) and apply to homes in Green Valley Ranch, Montbello, and Westwood. Other Denver neighborhoods may be added as more federal money is made available under the NSP program.

Stay tuned for more information on these programs.  If you’re at risk of missing mortgage payments or foreclosure, please check read our Options to Foreclosure report to take a proactive position on saving your home and credit.

Tagged as: assistance, Denver, foreclosure, housing, neighborhood, stability