HUD gives non-profits and governments 10% discount on REO properties

July 13, 2010 by · Leave a Comment
Filed under: REO News 

Housing Wire – The Department of Housing and Urban and Development (HUD) will give state and local governments and nonprofits participating in the Neighborhood Stabilization Program (NSP) preference to buy its REO at 10% below the appraised value.

The new initiative will also give these buyers a 14-day first-look period to consider buying the property ahead of investors. HUD secretary Shaun Donovan announced the new initiative at the National Council of La Raza annual conference in San Antonio, Texas.

In May, HUD announced a third round of NSP grants in addition to the $6bn awarded since September 2008. Grantees, which include nonprofits, state and local governments, use the money to buy and rehabilitate vacant homes in an effort to grow local economies and create jobs. The money is also put toward down payment and closing-cost assistance to low- and middle-income homebuyers.

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