New Non-Profit Body Finds Opportunities in Foreclosures

September 16th, 2009 | Tags: Foreclosures

sold foreclosures

In one hundred neighbourhoods deserted houses have been converted into new units – thanks to the efforts of a new non-profit body that is finding opportunities in foreclosures. Nothing like this has happened before.

Representatives from non-profit bodies, philanthropic organizations, financial and industrial sector as well as the government have joined hands. They are now taking a new approach to reclaim localities that have been damaged by the intense ravages of foreclosure. Their efforts have brought into existence The National Community Stabilization Trust – a non-profit body. It will be proactive knitting back the shaken fabric of localities devastated by empty homes, vanishing equity and dropping prices. The confidence of the remaining residents has been shaken.

The aim will be to provide the local administration and also the housing providers with two important services that are currently absent in the various measures that have so far been initiated to prevent foreclosure and blight. Easy access to foreclosed units will be made available and to flexible finance for renovating these houses.

The trust will assist in the transfer of the foreclosed homes from the many lenders (banks and other financial institutions) that own and manage them to local appointed housing providers who will refurbish the houses for the new purchasers and or tenants. By doing this the $6 billion coming from federal funds (Neighborhood Stabilization Program) distributed by HUD will be speedily utilized.

Under the First Look plan of the trust, the cities as well as counties will be able to access the homes before these are placed in the open market. This will cause more calculable and cost effective plans for revitalizing the neighbourhoods.

Craig Nickerson of the trust said, “Communities need a straight-forward and streamlined way to acquire foreclosed and abandoned homes. The Stabilization Trust’s First Look program puts the local housing providers in the driver’s seat, able to strategically decide which properties are most important to their neighborhood revitalization plans.”

Over one hundred localities in 35 of the worst hit states of the country have already given their stamp of approval to participate in this plan and avail of the free services being provided by the trust. Half a dozen non-profit bodies are functioning as the founding sponsors of the trust. They teamed up in 2008 following the unprecedented housing crisis. The funding is coming from various charitable organizations. Macarthur Foundation, Ford Foundation, Open Society Institute and Heron Foundation are some of the many involved in it.

Search Images:

Share and Enjoy: These icons link to social bookmarking sites where readers can share and discover new web pages.