Property Acquisition

Program Overview
 

NCST's national Property Acquisition Program, links the REO and distressed inventories, 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 local providers engaged in neighborhood stabilization. This program is the nation’s only scalable platform to establish a systematic, predictable, and transparent means of moving assets from Sellers to local housing providers.

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

  • The ReClaim Project: We work with community buyers in struggling, left-behind markets that are 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, and 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 will support Freddie Mac's Block-by-Block initiative, a program designed to revitalize urban neighborhoods that are struggling to recover from the economic crisis. It is intended to demonstrate that 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.


Program Goals

  • To stabilize neighborhoods left behind and devastated by foreclosures and abandonment.

  • To assist local government, non-profit, and socially motivated for-profit organizations efficiently acquire vacant and foreclosed properties.

  • To collaborate with financial institutions to serve as an efficient national conduit for REO and distressed asset transfers.


Program Principles

  • Concentration is key for effective neighborhood stabilization efforts. We help local housing providers focus on key houses within targeted neighborhoods.

  • In left-behind neighborhoods with high levels of foreclosures and abandoned properties, coordinated participation from all mortgage servicers gives communities a better chance at creating solutions for vacant or foreclosed properties through renovation and reuse.

  • Local governments and non-profit organizations benefit from lower acquisition costs and decreased competition for REO properties and distressed assets when they are transferred through NCST, increasing the impact of community stabilization funds.

  • A stabilized neighborhood benefits all property holders (homeowners, renters, servicers and investors).