Rainy Oregon found itself amongst a distinguished group of US States today slated to receive a fresh $600 Million in taxpayer funds via the US Treasury to prevent (or at least delay) an ever growing number of foreclosures. Unemployment played a large part in deciding which states were allowed to line up at the trough to feast on even more taxpayer dollars aimed at fixing their ailing housing markets:
"The Obama administration unveiled Monday $600 million in financial aid for five more states with high unemployment that have been slammed by the housing bust. The funding is for North Carolina, Ohio, Oregon, South Carolina and Rhode Island.
It comes on top of the $1.5 billion in funding announced last month by the Obama administration for Arizona, California, Florida, Michigan and Nevada, which all have deeply depressed home prices."
Oregon's share of the $600 Million bailout only adds up to a paltry $88 Million, and will do little to prevent the inevitable, regardless of the sunny predictions from your local realtor or elected politician:
"States have several options for using the money, including assistance for unemployed borrowers facing foreclosures and modifying mortgages."
“As Oregon families continue to navigate our struggling economy, nothing is more important to unemployed or underemployed homeowners than the ability to avoid mortgage delinquency and keep their homes,” U.S. Rep. David Wu, D-Ore., said in a statement. "These much-needed federal dollars will give our housing finance agencies resources to bolster their foreclosure prevention and housing market stability work.”
The first round of taxpayer money via the Treasury/HFA program was allocated to the following states: California, Florida, Arizona, Michigan, and Nevada. Perhaps the fact that Oregon now finds itself in similar company should tell us all something about the immediate future and grim reality surrounding our housing market? Or is the housing bubble going to be somehow "different" in Portland?