Deadline looms to use federal foreclosure money - Spokane, North Idaho News & Weather KHQ.com

Deadline looms to use federal foreclosure money

LEHIGH ACRES, Fla. (AP) - Cities, counties and states are having trouble spending some of the $4 billion given to them by Congress to help buy up abandoned homes and properties.

A Housing and Urban Development report finds that a third of more than 300 local governments that got money during the foreclosure crisis have barely made a dent in it a year later.

With the money came rules that some local officials say were confusing and often changed, making it hard to spend the cash. And the houses they did look to buy were often grabbed out from under them by better bids.

Now time is closing in, with a use-it-or-lose-it deadline looming just a few months away. The money will be gone if governments don't commit it to projects by September.

 

(Copyright 2010 by The Associated Press. All Rights Reserved.)

 

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