BofA giving munis first shot at REOs
REOs will be listed on private site before MLS
By Inman News, Friday, May 29, 2009.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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Submitted by Joellen Chappell on June 1, 2009 - 9:24am.
GREAT! Now our new crop of first time home buyers must compete with the cities as well as investors paying cash to purchase a home. The only silver lining in all of this was the affordibility issue. An FHA buyer, which is how most of the buyers are financing, does not stand a chance of getting an offer accepted when competing with the city and the cash investor buyer. The cities are NOT using this money to buy properties that need redevelopment, they are buying the same properties that a First Time Home Buyer would love to own.
The tax money should be used to buy properties in the areas that desperately need redevelopment, on homes that are not qualified for financing because of their condition. Not homes in a high demand neighborhood that will sell within a week for more than the listed price if given the opportunity. Once again, they have missed the issue entirely and the benefit will be to someone other than the consumer.
Joellen D. Chappell
Broker
Submitted by MARIE CHUNG on June 1, 2009 - 1:24pm.
I agree with Joellen but further believe some funds/resources should be allocated to develop collaboration/strategy with banks to safeguard vacant properties & mitigate vandalism. Yes the burden & responsibility is with the owner/bank and REO Broker locally but this is a huge problem that will get worse before it gets better... Unfortunately we are seeing a trend of the munis placing violations, liens & making the disposition even more difficult or nearly impossible...
Many times munis are placing these on properties only AFTER the property goes REO (deep pockets)... Many times such violations/liens are discovered in escrow or just before the close of escrow. Buyer walks... properties goes back on market & property gets vandalized again... and the vicious cycle repeats itself... Just a thought to brainstorm with anyone interested.
I wonder what munis will need assistance with acquisition & disposition here in So Cal. REO Modern Realty is available to assist.
BUY A BANK-OWNED PROPERTY IN CALIFORNIA
Marie Chung
Bordering LA & Orange Counties
REO Modern Realty Corp.
California REO Broker
Tel: (562) 860-2626
e-mail: Info@ModernRealtyCo.com
11900 South St. Suite 109B ~ Cerritos, CA 90703