Property Acquisition

Program Overview
 

NCST's national Property Acquisition Program, links the REO and distressed inventories 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 properties 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 properties from Sellers to local housing providers.

REO properties are purchased through two programs:

  • First Look Program. Community Buyers receive an exclusive view of newly available REO properties in target neighborhoods from select 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.

Two programs are established to work with distressed assets:

  • Pre-Foreclosure Solutions: We work with community buyers in struggling communities that are often plagued with low-value, non-performing assets. We identify and pursue solutions for these assets to support neighborhood stabilization.

  • Neighborhood Stabilization Initiative: 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.


Program Goals

  • To stabilize neighborhoods 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. Local housing providers should focus on key houses within tightly targeted neighborhoods.

  • In 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).


Turning foreclosed properties into safe and healthy homes for families

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