Of course we’ve heard about all the foreclosed properties out there. In Portland we’re just hitting the peak, with many more properties expected to be relinquished by homeowners this year. I’ve written here about REOs, foreclosed properties that revert to the bank to be sold or auctioned, sometimes at discount.
A certain number of these foreclosures occur with federally-insured or FHA mortgages. What happens in this case? Often HUD buys the property back from the bank that held the mortgage, in effect, making good on that federal guarantee. What happens to these HUD homes?
There’s a little-known HUD program called Good Neighbor Next Door (GNND), part of a series of federal initiatives designed to sell this inventory of federally-owned properties, promote sales in at-risk communities, and promote homeownership and neighborhood revitalization. GNND provides law enforcement officers, firefighters, emergency medical technicians and teachers an opportunity to buy HUD-owned homes for 50% off their list price.
Consumers and their realtors can visit the HUD site for more information about the Good Neighbor and other programs. Or contact me to see whether you, or a good neighbor you know, qualifies.