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Wisconsin gets $39 million from Feds for foreclosures; number of foreclosures up

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New Richmond,Wisconsin 54017
New Richmond News
Wisconsin gets $39 million from Feds for foreclosures; number of foreclosures up
New Richmond Wisconsin 127 South Knowles Avenue 54017

Wisconsin is getting almost $39 million from Washington to deal with the rapid rise in foreclosures.

It's part of a nearly $4 billion allocation from HUD, the Department of Housing and Urban Development.


The money can be used to rehabilitate or tear down abandoned houses, acquire properties and provide help with down payments and closing costs to home buyers with low to moderate incomes.

Milwaukee is getting its own grant of just more than $9 million. But Mayor Tom Barrett was hoping to get $15-20 million and he said he was disappointed with the size of the grant.

Barrett says he has created a public and private partnership to use the new money and other resources most effectively.

More foreclosures

Meanwhile, the number of Wisconsinites losing their homes rose another 10 percent last month. of Madison says 2,066 new foreclosures were filed statewide in September, up from 1,880 in August.

Philip Crawford, who founded the tracking firm, says some banks are giving homeowners longer grace periods before starting foreclosure proceedings. That still hasn't help bring the numbers down.

Almost half the state's filings are in seven counties in southeast Wisconsin, including Milwaukee.

Foreclosures there rose 18 percent from August, the highest jump since March.

Crawford says those with no equity are just walking away.

Ken Bauer of the Wisconsin Bankers Association says it still pays for those people to work with their bankers to try and keep their homes because home values will go up again at some point.