Bank of America says it will give municipalities receiving neighborhood stabilization grants a "first look" opportunity to purchase bank-owned properties before they are listed on multiple listing services and public sites.
The bank said it’s streamlining the process for municipalities to purchase properties from its real estate-owned (REO) portfolio to help them leverage federal grants and minimize the impact of foreclosed homes on surrounding property values.
Eligible municipalities will be given private access to a new Bank of America Web site that will provide real-time listings of all the bank’s REO properties.
Local and state government departments receiving grants from the U.S. Department of Housing and Urban Development’s Neighborhood Stabilization Program will also have the ability to purchase multiple properties in a single transaction, Bank of America said in a press release.
As authorized by the Housing and Economic Recovery Act of 2008, HUD has allocated $3.92 billion in Neighborhood Stabilization Program grants, which state and local governments will use to purchase and redevelop foreclosed homes.
The American Recovery and Reinvestment Act of 2009 earmarked an additional $1.93 billion for NSP grants, with applications for those funds due July 17.
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