A Boston Program Aiding Foreclosed Homeowners Could Be a National Model for Fighting Blight

July 28, 2014
Washington Post 
mortgage lending news
Housing experts are taking interest in a foreclosure-prevention initiative in Boston that they believe could serve as a national model for curtailing neighborhood blight.

Stabilizing Urban Neighborhoods (SUN), administered by the nonprofit Boston Community Capital (BCC), purchases homes that are in or near foreclosure and rents or sells them back to the former owners at a price that is in line with current market value. Buybacks like these are essentially principal reductions that create smaller mortgages for distressed homeowners, who typically owe more on their home loan than the property is worth.

SUN, which launched in 2010, has helped about 500 families in Massachusetts, Maryland, and Rhode Island retain their homes. Just as impressive, it has done so with minimal defaults. The program is funded with money borrowed from individual contributors and foundations and, in the event that a beneficiary is able to sell at a profit, that profit must be shared with with SUN. BCC then reinvests those funds in projects that benefit the community.

Abstract News © Copyright 2008-2013 INFORMATION, INC.
Powered by Information, Inc.

Stay Updated

Join the fight against predatory lending. Enter your e-mail to sign up for breaking news, action alerts, and CRL's original research.

   Please leave this field empty

Help Us End Predatory Lending

Predatory lending destroys family wealth, and preys on our most vulnerable communities. You can help us end abusive lending practices by donating to CRL, or by sharing our work with others.