BofA Facilitates Cities' REO Purchases

""Bank of America Home Loans"":http://www.bankofamerica.com recently announced a new streamlined program for municipalities to purchase properties from its REO portfolio. The new guidelines are exclusively for local and state government departments receiving HUD's ""Neighborhood Stabilization Program"":http://www.hud.gov/offices/cpd/communitydevelopment/programs/neighborhoodspg/ (NSP) grants.
Bank of America says the simplified program will provide municipalities with a quicker avenue for acquiring foreclosed properties under the government program - homes that can be resold or rehabilitated to meet other community development needs. The lender said in a press statement that it is proactively briefing eligible municipalities about the new guidelines, and has dedicated staff to work with government officials, agencies, and their nonprofit designees throughout the entire REO review and purchase process.
Specifically, Bank of America's new guidelines give these government groups first-look at BofA properties before they are posted on Multiple Listing Services (MLS) and other public sites. Municipalities will be given access to a private database which provides real-time updates of all the bank's REO properties within specific zip codes, and will be allowed to purchase multiple properties in a single transaction. They will also have a single Bank of America servicing associate to work with the city from start to finish.
Steve R. Bailey, national servicing executive at Bank of America, said, ""Helping our customers stay in their homes is a top priority for Bank of America. However, where unemployment or other situations have made sustaining mortgage payments impossible, and foreclosure inevitable, we are working with communities to help ensure these properties do not negatively impact surrounding home values.""
Bailey went on to explain that the bank's new guidelines help municipalities leverage federal grants to purchase foreclosed properties with greater ease and speed, so they and their nonprofit partners can determine the best use of the properties to meet local needs.""
""Bank of America Home Loans"":http://www.bankofamerica.com services one in five residential mortgages in the United States, making it one of the nation's largest mortgage companies. The bank said it is committed to preserving homeownership and stabilizing local communities. In addition to the new guidelines for HUD grant purchases, Bank of America explained that this commitment includes modifying $100 billion in mortgage loans over the next three years; $35 million in neighborhood preservation and foreclosure prevention grants; and low-cost loans and investments to nonprofit organizations for foreclosure prevention counseling and REO purchases.