The surplus of housing has been a problem for the past few years. That has led to declining prices and a rash of foreclosures. The federal government approved a program last year to buy up foreclosures and it has finally announced that half of the 4 billion dollars approved will actually go to buying foreclosures.

Just so we have this straight, a program is created in 2008 and funded. In 2009 the rules of the plan are announced, and odds are in 2010 the money will be spent. So instead of creating an infusion and stabilization in the marketplace when it is needed, the governments slow moving will just raise prices when the crisis is over.

We need to tell the government to get the hell out of the way, lower taxes, and let the market fix the ills. Sure there will be more pain, but it will be quick and effective as opposed to glacial government programs that just extend the pain.

Just over half of a new $4 billion federal housing program approved late last year will go to purchase and fix up foreclosed homes nationwide, a study released this week showed.

The program aims to raise home values by helping state and local governments buy bank-owned properties, repair or demolish them, and help working families make the leap to homeownership. And Congress added another $2 billion to the Neighborhood Stabilization Program this year when it passed the economic stimulus package.

The first round of grants were allocated to states and cities as part of a housing rescue plan that was regarded at the time as the most significant housing legislation in a generation. The Department of Housing and Urban Development signed off on more than 300 proposals from all 50 states.  via San Jose Mercury News.

Related posts:

1. Federal Bailout Money Going Straight To Bottom Line, Not To Loans
2. South Carolina Blocks Foreclosures Until Housing Plan Enacted
3. My Landlord is the United States Government?
4. Top 10 States By Foreclosure Filings in 2008
5. HOPE for Homeowners Saves 1 Home – 1 Home???