Foreclosure Recovery Strategies

Information by State  Print version   Helpful Tools MERS A process developed by the real estate industry that keeps track of the identity of servicers. more... What's New Transforming Foreclosed Properties This Furman Center report summarizes discussion by housing researchers, policymakers, lenders, and nonprofit housing organizations on how to leverage public and private resources to reuse foreclosed properties in a manner that helps stabilize neighborhoods. PDF Green City Homes Duluth, MN will use a recently announced $250,000 HOME grant award to fund Northern Communities Land Trust (NCLT), a local Community Housing Development Organization (CHDO), to acquire and substantially rehabilitate 10 blighted, vacant and/or foreclosed units for sale to low-income households. more... FDIC Loan Modifications FDIC’s systematic loan modification program reduces first lien mortgage payments to as low as 31% of monthly income. The loss-share guarantee on redefaults of modified mortgages can provide the necessary incentive to modify mortgages on a sufficient scale. more... Draft NSP Plans Center for Housing Policy provides links to draft NSP plans that are posted for public comment as they become available. more... NGA Best Practices Memo dealing with state and local efforts to stabilize neighborhoods outlines best practices in neighborhood stabilization. PDF Best use of NSP Funds Federal Reserve Bank discussion paper provides guidance on best use of Neighborhood Stabilization Program Funds to stabilize hard-hit neighborhoods. PDF Neighborhood Stabilization Continued Affordability Template Suggestions from NCB Capital Impact on how to comply with Neighborhood Stabilization Program continued affordability requirementusing shared equity homeownership strategies. NSP Template | Webinar/Materials Summit on Housing HUD hosted a national housing summit in Washington, DC on October 7-8, and is conducting a series of regional conferences in Los Angeles, Columbus, and Orlando to explain the details of this new program to governors, mayors, county executives and other State and local leaders. Washington, DC Presentations NSP Program Highlights NeighborWorks America The NeighborWorks Community Stabilization website includes a description of funding available from HUD's Neighborhood Stabilization Program, how funds can be used, targeting requirements, how to apply, and other resources to help communities and nonprofit organizations stabilize and revitalize neighborhoods affected by home foreclosures. www.stablecommunities.org Knowledgeplex Webchat Presentations are available from October 2, 2008 webchat dealing with Neighborhood Stabilization Grants. Experts discussed strategies on how to best use these funds to stabilize those neighborhoods under distress from foreclosures. more... Related Information   Neighborhood Stabilization Program CDBG Neighborhood Stabilization Program provides emergency assistance for redevelopment of abandoned and foreclosed homes.   HOME Affordability Identifies continued affordability periods for HOME program.   Lease Purchase White Paper This paper provides reasons why a lease-purchase strategy should be adopted by nonprofit developers to take advantage of bargain acquisition opportunities in the housing market.   Planning Grants Citigroup provided planning grants to local housing organizations in 12 communities across the country to help them revitalize communities hardest hit by residential housing foreclosures.   MacArthur Foundation The John D. and Catherine T. MacArthur Foundation is investing $68 million in grants and low-interest loans in foreclosure prevention and mitigation efforts in local neighborhoods.   Housing & Economic Recovery Act Summary Housing legislation that aims to shore up the struggling housing market, provides $3.92 billion in emergency assistance (CDBG Funds) to stabilize neighborhoods and communities hardest hit by the foreclosures, and offers a $7,500 first-time homebuyer tax credit. Emergency CDBG Assistance Tax provisions   HOPE for Homeowners Hope for Homeowners program will continue FHA's existing and successful efforts to provide aid to struggling families trapped in mortgages they currently cannot afford.   FHA Secure Families should not wait to seek mortgage relief. Right now, homeowners can determine if they are already eligible for mortgage assistance through FHASecure, FHA's existing refinancing program.   Conference of Mayors Report features a variety of abandoned property strategies and remedies for dealing with the impact of the mortgage foreclosure crisis on neighborhoods.   ShoreBank Foreclosure Rescue Loan provides refinancing to home owners caught up in the mortgage lending meltdown. It issued 90 Rescue Home Loans worth $16.6 million to homeowners between October and April and aims to issue another 510 rescue loans before the end of 2008. Video   Short-term Emergency Loans Examples of assistance offered by five different short-term emergency loan programs.   Resources For additional information about how cities and organizations are responding detailing the multiple waves of the foreclosure crisis.   Foreclosure Mortgage Maps These maps show conditions and density of owner-occupied subprime mortgage loans for the states, counties and zip codes in the United States.   Action Steps for States This Brookings paper describes 10 action steps that states can take to mitigate the impact of foreclosures on families and neighborhoods.   Foreclosure to Homelessness This report identifies strategies which could help reduce the severity of the crisis on individuals and families who lose their homes to foreclosure.   Enterprise Community Partners Proposal for Great American Dream Neighborhood Stabilization Fund to provide money quickly and efficiently to local non-profit organizations or municipalities to purchase foreclosed properties and offer them for sale.   Federal Reserve Board   FHA Revitalization Areas   HUD's Dollar Homes HUD makes it possible for communities to fix up homes that can act as catalysts for neighborhood revitalization, attracting new residents and businesses to an area.   Land Banks Examples of how some state and local governments and organizations are addressing the problem through creation and operation of land banks.   National Governor's Conference This provides examples of state strategies to address the foreclosure crisis.   National League of Cities This City Practice Brief presents examples of how cities are using different tools to address the foreclosure crisis.   Neighborworks This provides an overview of best practices around foreclosure intervention efforts.   State Responses to Foreclosures A comprehensive look at what states have been doing in response to the foreclosure crisis.

The foreclosure crisis threatens to unravel significant progress and reinvestments communities made through neighborhood revitalization efforts. Here are examples of how some state and local governments and organizations are addressing the problem:

Living Cities Pilot Program

Promising local approaches for returning foreclosed properties to productive use in strong, moderate and weak housing markets such as Chicago, Cleveland, Dallas, Detroit, Los Angeles, Massachusetts, New York City, Rhode Island, Twin Cities and Washington, DC.
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NCDA Presentation

Providence, RI proposed using a Section 108 Loan Guarantee program as a financing mechanism for acquisition, rehabilitation, and re-sale of foreclosed homes at a recent meeting of the National Community Development Association. Funds could also be used to support gap-financing loans to homeowners refinancing to save their homes.
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National Lease Purchase Initiative

Self-Help has developed a national lease-purchase initiative to help local nonprofits buy single-family properties using a Fannie Mae mortgage product, and lease the homes to families who are not yet mortgage-ready but can get there within a five-year time frame.
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Federal Reserve Forums

Presentations and best practices from a series of forums designed to help communities recover from the negative impacts of foreclosures on borrowers and neighborhoods.
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NYU Foreclosed Properties Roundtable

Housing experts discuss how to best leverage public and private resources to reuse foreclosed properties in a manner that helps stabilize neighborhoods.
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State Summit on Foreclosures and Housing Solutions

National experts discuss actions states could take to mitigate the rising number of foreclosures, prevent future foreclosures, and sustain neighborhoods in a weakening economy.
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NeighborWorks Symposium

This meeting examined a range of issues affecting neighborhoods where homeowners are facing foreclosure. A number of resources from the symposium are now available, including a video describing local efforts.
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Enterprise Community Partners

	Enterprise foreclosure testimony
	Rochester, NY
	Los Angeles, CA

Local Initiatives Support Corporation Case Studies

	Atlanta, GA
	Cleveland, OH
	Indianapolis, IN
	New York City, NY

Massachusetts

The Neighborhood Stabilization Loan Fund targets $17 million from private lenders and $3 million from private, non-profit foundations to support the acquisition of properties in neighborhoods hard-hit by foreclosures. The state Department of Housing and Community Development is supporting this initiative with $1 million, which will serve as a loan loss reserve, a crucial safety net for the loan fund.
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New York State

Foreclosure Prevention and Mitigation for Affordable Mortgage Lending

Ohio State

	Recovery from Foreclosure
	Ohio Foreclosure Prevention Task Force
	Foreclosure Resource Center

Cities

	Chicago, IL
	Denver, CO
	Hennepin, MN
	Minneapolis, MN   Residential Mortgage Foreclosures in Minneapolis   5-Point Strategy   The Coordinated Plan to Address Foreclosures   Minnesota Foreclosure Partners Council
	Riverside, CA
	Rochester, NY
	St. Paul, MN
	Woodbury, MN