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Communities get ‘First Look’ at many REOs

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Federal housing officials have reached an agreement with mortgage lenders that will give nonprofit organizations and state and local governments right of first refusal to purchase foreclosed homes in certain targeted neighborhoods.Lenders participating in the "National First Look Program" represent about 75 percent of the real estate owned (REO) marketplace, the Department of Housing and Urban Development announced Wednesday.Participating institutions include Bank of America, Chase, Citi, Deutsche Bank, GMAC, Nationstar Mortgage, Ocwen Financial Corporation, Saxon Mortgage Services, U.S. Bank, Wells Fargo, Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA).The program is a partnership between HUD and the National Community Stabilization Trust. Communities participating in HUD's Neighborhood Stabilization Program -- "NSP grantees" -- will be given the first opportunity to purchase REO properties in certain neighborhoods so these homes can either be ...