Loan Modification

Foreclosure Happens When HUD Says it Does

By Gina Pogol

HUD’s Neighborhood Stabilization Program (NSP) was created in 2008 to take some pressure off of areas with high foreclosure rates and home abandonment. Through the purchase and redevelopment of foreclosed and abandoned homes and residential properties, HUD works to stabilize the housing markets and local economies. Recently, HUD announced that the definition of “foreclosure” will be expanded to include homes with mortgages that are 60 or more days in arrears, and “abandonment”means the property has a mortgage at least 90 days delinquent. What does this do for home buyers and owners?

What it should do is enable neighborhoods to get help from the program without waiting for lenders to get through the logistics of foreclosure. Money for the programs is issued to organizations through grants; it is then funneled to help qualifying neighborhoods.

Home Buyer Assistance?

You may be able to buy a foreclosure home from your town or county; the program helps local governments purchase vacant or abandoned properties and resell them to qualified home buyers. Home buyers do not receive assistance directly from HUD. However, NSP funds may be used to help home buyers purchase property. Interested buyers must contact an NSP grantee for application details (click HERE for a list of organizations). NSP operates on a national scale, but aid requirements may vary from one state or city to another.

Full post as published by FHA Mortgage Guide on April 04, 2010 (boomark / email).