Property Acquisition

NCST's Property Acquisition Programs link the problematic inventory, both property and notes, of financial institutions (Sellers) with local housing providers who seek to acquire foreclosed, abandoned, or distressed properties within designated, targeted areas to stabilize neighborhoods. NCST facilitates the transfer of these assets from the Sellers to the local providers through the nation's only scalable platform to establish a systematic, predictable, and transparent means of moving assets.

Pre-foreclosure, low-value assets are conveyed through two programs:

  • The ReClaim Project: We work with community buyers in struggling, left-behind markets often plagued with low-value, non-performing assets. We identify and pursue solutions for these assets to help remediate serious borrower delinquency and disrepair - solutions that support neighborhood stabilization.
  • Mortgage Resolution Fund (MRF): MRF is the partnership of Mercy Portfolio Services, Enterprise Community Partners, the Housing Partnership Network, and NCST. We seek to further neighborhood stabilization efforts by preserving homeownership. We purchase non-performing loans and offer borrowers the opportunity for a permanently modified, affordable fixed-rate mortgage at a new reduced principal balance.

Collaborative initiatives currently include two projects:

  • Neighborhood Stabilization Initiative (NSI): The NSI program is a joint program with the Federal Housing Finance Agency (FHFA), Fannie Mae and Freddie Mac, with NCST as the non-profit partner. The program seeks the best disposition of distressed properties in particularly hard hit markets.
  • Block-by-Block Initiative: NCST supports Freddie Mac's Block-by-Block initiative, a program designed to revitalize urban neighborhoods struggling to recover from the economic crisis. It is intended to demonstrate a holistic, collaborative plan involving local government, housing industry partners, nonprofit organizations and the tools and resources of a prominent secondary market solution provider can help facilitate sustainable neighborhood recovery.

REO properties are purchased through two programs:

  • First Look Program. Community Buyers receive an exclusive view of newly available REO properties in select neighborhoods from financial institutions, before those properties are listed for sale on the open market.
  • Donation Program. To supplement the purchase of REO properties in neighborhoods of greatest need, participating financial institutions make available vacant REO properties for donation to eligible organizations.

Success Stories

H.I.P. - Housing Initiative Partnership - 2

Suitland, MD
This property was a haven for drug activity with a notorious reputation in the neighborhood. There was little that the active Neighborhood Watch could do but constantly call the police. During the initial property inspection, a police officer even stopped HIP staff to ask why they were at the site. The scope of renovation was a gut rehab. Everything in the house was removed and replaced with the exception of the hardwood floors.