Non-profits launch nationwide foreclosure st

July 21, 2010 05:30PM

Two non-profit housing organizations have teamed up to transform foreclosed and abandoned homes into affordable housing. Habitat for Humanity, which has built more than 350,000 houses for impoverished families worldwide since its founding in 1976, and National Community Stabilization Trust, a federally sponsored initiative that revitalizes neighborhoods badly damaged by the foreclosure crisis, will partner for two years to purchase and rehabilitate the “REOs” or real estate owned properties. The homes will be purchased from participating lenders, including Bank of America, Chase Bank, Citibank, Fannie Mae and Freddie Mac, through funding from the U.S. Department of Housing and Urban Development, which in turn funds the National Community Stabilization Trust.

After the homes are purchased, Habitat for Humanity has pledged to renovate the homes and sell them to low- and middle-income families. So far, 130 homes in 40 states are slated to be included in the program. “The ability to purchase foreclosed houses before they hit the open market positions Habitat to make a bigger impact in communities hardest hit by the foreclosure crisis,” said Stephen Seidel, a senior director with Habitat for Humanity, in statement released by both groups. TRD