Government Will Consider Homes That Are 60 Days Delinquent As Foreclosed

Government Will Consider Homes That Are 60 Days Delinquent As Foreclosed

Published on: Monday, April 05, 2010 Written by: Jon Prior

To increase the number of properties qualifying for the Neighborhood Stabilization Program, the US Department of Housing and Urban Development recently changed its definition of what constitutes a foreclosed property. Properties more than 60 days delinquent will now be considered foreclosure properties, and foreclosed properties vacant for at least 90 days will be considered abandoned. See the following article from HousingWire for more on this.

The US Department of Housing and Urban Development (HUD) changed how it defines foreclosed and abandoned properties to include properties in default and uninhabitable homes with code violations. Effective immediately, homes that are 60 days or more behind on the mortgage can be considered foreclosed under the new definition.

The changes will increase the amount of properties that qualify for the Neighborhood Stabilization Program (NSP). HUD awards grants through the program to purchase and redevelop foreclosed and abandoned homes to stabilize local communities.

HUD secretary Shaun Donovan said the original NSP rules limited the program’s impact.

“The rules needed to be more flexible so our local partners can put taxpayer dollars to work quickly to stabilize neighborhoods hard-hit by foreclosure,” Donovan said.

Before the changes, HUD defined a “foreclosed” home as a property where the foreclosure process was completed. Because so many homes are currently held up in the foreclosure pipeline – either through the court system or the government’s own incentive programs – HUD changed the definition to include any property either 60-plus days delinquent on the mortgage, 90-plus days behind on tax payments, or where the foreclosure process has been initiated or completed under state or local law.

The term “abandoned” defined a foreclosed property standing vacant for at least 90 days. However, it excluded properties abandoned by the owner but held tenants in place. To give HUD grantees the ability to protect a tenant’s occupancy, the term was changed. Now, an “abandoned” property includes any home where no mortgage or tax payments have been made for 90 days, or an inspection of the home determines that the property is not habitable and the owner took no corrective action within 90 days of notice.

“It became clear to us that the Neighborhood Stabilization Program as originally designed was too restrictive and limited the ability of our local partners to put this funding to work quickly,” said Mercedes Márquez, assistant secretary for community planning and development. “We need to be more flexible so our local partners can respond to market conditions and reverse the effects of foreclosure in these neighborhoods as quickly as possible.”

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Anita
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TWITTER - anitarny / FACEBOOK - anitarny

"FAILURE IS NOT AN OPTION"


Thanks for the Info!!!

Anita - Wow!!!

I just got done reading your amazing post from back in Jan of this year about your evolution. That post was amazing and I am so happy for you.

I wanted to check out your profile - and just realized that in TWO days - it will be your TWO year anniversay since you joined this DG website - amazing two years huh??

I just read DG's book this weekend and I am still trying to get my thoughts together so I can get some direction for my own personal "evolution". Smiling

Thanks for the above post on the 60 vs 90 days forclosure vs abandonment.

Hope you are feeling healthier everyday and congrats on your success!

Dizzydrl (Lisa)
Charlotte, NC


re: dizzy

Hi Dizzy and you are welcome.

Yes I do feel better - with each new day and just keep working it - success will come and when it does it will come in abundance.

__________________

Anita
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TWITTER - anitarny / FACEBOOK - anitarny

"FAILURE IS NOT AN OPTION"


Thank you Anita,

I have a home on my list that has been abandoned for years (at least 14) and the pwners have made no attempt to maintain the property. I've been told that they have, in fact, moved to Italy. I will be investigating further to see how I can acquire this property. I wish you greater success.

Regina

Keep pushing forward.


regina

You may try talking with the tax collection office - it may be that you can acquire it by paying the back taxes. But if you do - find out what the redemption period is for the owner. Sometimes its 1-2yrs or none at all. Good luck

__________________

Anita
******************************************
TWITTER - anitarny / FACEBOOK - anitarny

"FAILURE IS NOT AN OPTION"


Good info Anita, nice to see

Good info Anita, nice to see you posting again. I hope all is well with you.
And if I dont see you when you are in NY I will hopefully see you at the EDGE event.

Richie.


Thanks Anita,

I checked with the county Assessor and the taxes are being paid. It's really strange because the city code compliance officers are not able to locate a different address for the owners. When I mailed a letter to that address, however, it came back not deliverable. I mailed a lette to an APO address I located, haven't heard anything yet.


reply - regina

Regina wrote:
I checked with the county Assessor and the taxes are being paid. It's really strange because the city code compliance officers are not able to locate a different address for the owners. When I mailed a letter to that address, however, it came back not deliverable. I mailed a lette to an APO address I located, haven't heard anything yet.

Just wait and see what comes of the APO - then if nothing do a little skip tracing on the owners current contact info by looking up nearby relatives with same last names. You may be surprised at that you find.

__________________

Anita
******************************************
TWITTER - anitarny / FACEBOOK - anitarny

"FAILURE IS NOT AN OPTION"


I ran into the same exact

I ran into the same exact problem on 2 vacant properties. And the neighbors dont know anything.
What is the APO address?
Richie.


B.C.

An APO address is an overseas address, sort of an overseas PO box. I know that this owner was in the military at one time.


Thanks for another great article Anita!

I read so many of your posts! You are a mentor to us all! I am rather new to this site (only started posting in March) and have learned so much just at this website alone. I have a question. When they talk about grants in this article, do you know if as businesses we can use the grants they are talking about? I am just started doing a little research on grants yesterday and am in the application process now. Thanks for your time Anita!


Abandoned Stability

The news you just posted can change the whole ballgame concerning HUD's/Fed's foreclosure process and it's all a benefit for us. I am finally stepping out of my shadow and taking action to get myself involved in:Defaults, Pre-foreclosures, foreclosures, Assignments, Lease Options, non-performing notes, and now...abandoned properties. Have my business cards in hand and making flyers, bandit signs next. I'm already posting on craigslist and will post in free newspapers. The Adventure Begins.

Bill G.

P.S. Keep up the good work Anita and the articles help too! Thanks.

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Never Give Up, Never Surrender!