Fort Worth to offer $20,000 loans for people buying Foreclosed Houses.

FORT WORTH Foreclosures - City officials are addressing the housing meltdown, with a plan to use $6.2 million in federal funds to help people buy foreclosed homes in areas that have been hit the hardest.

Targeted areas are mainly outside Loop 820, which saw a lot of development in recent years.

The City Council is scheduled to vote on a spending plan during today's meeting. Several other area cities received similar funds, as did Tarrant County.

Unlike some other local governments, which want to buy foreclosed homes outright, Fort Worth plans to loan the money in $20,000 increments. Buyers will be able to use the funds for down payments, closing costs and repairs.

The city's goal is to get more property into the hands of homeowners.

If the borrowers stay in the home for five years, the city can forgive the loan.

About half the money is targeted at low-income families (less than $32,300 for four people), and the rest at people making up to 120 percent of the area median ($77,500).

The money will provide about 280 loans. Fort Worth had 3,780 foreclosures from September 2007 to October 2008.

The Housing and Community Development Department has recommended that the loans be concentrated in seven ZIP codes 76123,76133,76112,76179,76131,76137, and 76248 generally in newer areas outside Loop 820, which accounted for 49 percent of the foreclosures in the last year.

For example, ZIP code 76248, which is bounded by Interstate 35W, North Tarrant Parkway and Alliance Gateway, had 341 foreclosures.

According to the city, the homes are middle class, with an average size of 1,909 square feet and an average value of $120,000.

Fort Worth Foreclosures