We found this article on knwledgePlex and thought it might be of interest in New Jersey as the sub-prime induced foreclosure crisis intensifies. When we search RealtyTrac we are overwhelmed with the number of properties. The initiative in Massachusetts appears to be one positive response to this crisis.
Two Boston-based organizations are creating a $20 million loan pool for non-profits to purchase foreclosed homes in distressed areas, reported The Patriot Ledger. The sponsors are the Massachusetts Housing Partnership, a quasi-public state agency, and the Massachusetts Housing Investment Corp. According to MHP’s executive director, Clark Ziegler, a top aide to Gov. Deval Patrick helped facilitate the effort. As envisioned, participating non-profits could access lines of credit ranging from $500,000 to $1 million and carrying a 5 percent interest rate. With the lines of credit, non-profits could more quickly assemble financing to buy foreclosed homes, which would be resold or made available as rental housing, organizers said. The first six or seven non-profits could be selected within the next two months, said Massachusetts Housing Investment Corp. president Joe Flatley.
Housing Loan Pool Set Up to Assist Nonprofit Purchase of Foreclosed Homes
04/10/2008 | The Patriot Ledger (Quincy, MA)