HUD Expands NSP In Cuyahoga County

Posted by Orb Staff on July 06, 2010 No Comments
Categories : Mortgage Servicing

ink=http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-141]U.S. Department of Housing and Urban Development[/link] (HUD) has formed an agreement with the Cuyahoga County Land Reutilization Corp. (CCLRC) to stabilize neighborhoods in Cleveland and Cuyahoga County by selling foreclosed homes to the CCLRC for as little as $100. The agreement follows a similar successful program launched in Cleveland in which HUD transferred 441 foreclosed properties to the city at deep discount in just over a year. ‘Now that we have proven that these efforts work in Cleveland, we hope to do the same throughout Cuyahoga County,’ says HUD Secretary Shaun Donovan. ‘In addition, this discount sales program will leverage $41 million HUD awarded to the CCLRC through the Recovery Act's Neighborhood Stabilization Program (NSP). Through our coordinated efforts, CCLRC has the financial capacity and flexibility to acquire properties not only from HUD, but also from any real estate entity.’ The discounted sales program in Cuyahoga County will run until Sept. 30, 2011. HUD will offer CCLRC an exclusive opportunity to purchase properties at significantly reduced prices, depending on the home's appraised value. For example, homes valued between $20,001 and $100,000 will be sold at a 30% discount for an initial five-day period. After 60 days, the homes will be sold at a 50% discount. Homes worth up to $20,000 will be sold for $100. ‘I am pleased that HUD has agreed to extend Cleveland's landmark REO agreement to the rest of Cuyahoga County,’ adds Cleveland Mayor Frank G. Jackson. ‘An agreement with CCLRC takes advantage of their expanded capacity to effectively acquire, hold and dispose of homes in a way that assures quality restoration and supports our neighborhood revitalization efforts.’ Earlier this year, HUD awarded nearly $41 million in NSP2 funds to CCLRC. The funds will be used in targeted areas across 47 census tracts to acquire, rehabilitate, and resell 216 units of foreclosed or abandoned properties and to provide home buyer loans (such as a soft second mortgage) for these homes and 150 additional homes. SOURCE: [link=http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-141]U.S. Department of Housing and Urban Development

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