On April 2nd the federal government announced a change to the definition of a foreclosure. The change is meant to invigorate the
not-quite-so-vibrant Neighborhood Stabilization Program rolled out in
2009.
"It became clear to us that the Neighborhood Stabilization Program as originally designed was too restrictive and limited the ability of our local partners to put this funding to work quickly," says Mercedes Marquez, HUD's assistant secretary for community planning and development. "We need to be more flexible so our local partners can respond to market conditions and reverse the effects of foreclosure in these neighborhoods as quickly as possible."
Cities, states and counties have been dipping their toes into the NSP program, but finding it hard to spend the grant money. This new development broadens the pool of available properties that local governments can target, opening up more possibilities.
Now a comunity can buy properties that are 60 days delinquent on their mortgage (as long as the owner has been notified), or if the property is 90 or more days delinquent on tax payments.
The definition of an abandoned home has also changed: it now includes any home where no mortgage or tax payment has been made for 90 days, or where code enforcement inspections have shown that the home is not habitable and no corrective action has been taken.
Once the properties are purchased by local government, it is up to each city, county or state to find ways to get families into those homes. In Prince George's county in Maryland, the county is offering help with the down payment and closing costs for first-time home buyers purchasing a vacant foreclosure.
In Jacksonville, Fla. the city is using the $26 million it's received from HUD to offer reduced down payments and up to $30,000 in downpayment assistance. The city is also running a home rehabilitation project where all vacant foreclosures get a new connection to city water and sewer, new air conditioning, carpeting and appliances.
“We are excited for the opportunity to leverage federal dollars to provide hundreds of Jacksonville residents with the opportunity to own a quality, affordable home,” said Mayor John Peyton. “The NSP program is a win-win for all in that it provides developers and contractors with much needed work during this economic downturn, offers families quality affordable housing and helps further stabilize our neighborhoods.”
As you find the home of your dreams on our site, make sure you check with your local city or county, as well as state, to learn about all the help available to you through NSP programs.
"It became clear to us that the Neighborhood Stabilization Program as originally designed was too restrictive and limited the ability of our local partners to put this funding to work quickly," says Mercedes Marquez, HUD's assistant secretary for community planning and development. "We need to be more flexible so our local partners can respond to market conditions and reverse the effects of foreclosure in these neighborhoods as quickly as possible."
Cities, states and counties have been dipping their toes into the NSP program, but finding it hard to spend the grant money. This new development broadens the pool of available properties that local governments can target, opening up more possibilities.
Now a comunity can buy properties that are 60 days delinquent on their mortgage (as long as the owner has been notified), or if the property is 90 or more days delinquent on tax payments.
The definition of an abandoned home has also changed: it now includes any home where no mortgage or tax payment has been made for 90 days, or where code enforcement inspections have shown that the home is not habitable and no corrective action has been taken.
Once the properties are purchased by local government, it is up to each city, county or state to find ways to get families into those homes. In Prince George's county in Maryland, the county is offering help with the down payment and closing costs for first-time home buyers purchasing a vacant foreclosure.
In Jacksonville, Fla. the city is using the $26 million it's received from HUD to offer reduced down payments and up to $30,000 in downpayment assistance. The city is also running a home rehabilitation project where all vacant foreclosures get a new connection to city water and sewer, new air conditioning, carpeting and appliances.
“We are excited for the opportunity to leverage federal dollars to provide hundreds of Jacksonville residents with the opportunity to own a quality, affordable home,” said Mayor John Peyton. “The NSP program is a win-win for all in that it provides developers and contractors with much needed work during this economic downturn, offers families quality affordable housing and helps further stabilize our neighborhoods.”
As you find the home of your dreams on our site, make sure you check with your local city or county, as well as state, to learn about all the help available to you through NSP programs.
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