Bank of America Provides Florida Financing to Help Reduce Foreclosures
Recent reports state that Bank of America has decided to give Florida a sizable chunk of change in an effort to relieve its foreclosures. The amount of $10.7 billion represents 6.4% of Bank of America’s total amount loaned in its distribution program. The purpose of the money is to help sustain economic development and relief programs to benefit both small businesses and consumers alike. The distribution ultimately looks to generate jobs and general morale in the midst of a housing market in ruin, and will hopefully see a drop in Florida foreclosures.
Although Florida foreclosure numbers dropped in April, REO foreclosure numbers were on the upturn. Strangely enough, REOs were down only the month before. On a state-by-state basis, Florida remains one of the top in terms of foreclosures (third place in April, fourth in March, respectively). Meanwhile, states such as California are actually dropping in rank in terms of state foreclosure property numbers (from second to fourth).
Most of the money allocated by Bank of America is going to South Florida due to the fact that the area is hitting record numbers of distressed properties within the state. $3.8 billion has been given to the area, representing about 35.5% of the total amount distributed. Within South Florida, Miami saw the largest chunk of change with $1.5 in an attempt to relieve Miami foreclosures. Most of South Florida’s foreclosure numbers come from condos, with state government attempting to pass legislation to aid such areas.
In short, the Bank of America cash is looking to give the state some large-scale relief, creating jobs and providing some overall recovery.