Bank of America Announces Program to Help Municipalities Purchase Foreclosed Properties

Guidelines for use with new federal Neighborhood Stabilization Program funds

May 27, 2009 -- Calabasas, Calif. - As part of its commitment to stabilize communities hardest hit by foreclosures, Bank of America Home Loans has announced new streamlined capabilities for municipalities to purchase properties from its real estate-owned (REO) portfolio.

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The new guidelines are exclusively for local and state government departments receiving U.S. Department of Housing and Urban Development’s (HUD) Neighborhood Stabilization Program (NSP) grants, to more easily and quickly acquire foreclosed properties for resale to home buyers or to address other community development needs.

Bank of America is proactively briefing eligible municipalities about the new guidelines, and has dedicated staff to work with the government officials, agencies and their nonprofit designees throughout the entire REO review and purchase process.

Specifically, the new guidelines offer to NSP grant recipients the following:

* “First Look” Purchase Opportunity – Review of Bank of America bank-owned properties before being listed on Multiple Listing Services (MLS) and other public sites.

* Multiple Property Purchase Opportunity – The ability to purchase multiple properties in a single transaction.

* Individual REO Sales – A dedicated servicing associate at Bank of America to work with the city from start to finish.

* Real Time Listings – Private access to a new Web site providing real-time listings of all REO properties owned by the bank. Lists of all REOs within a specific zip code are also available.

“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,” said Steve R. Bailey, national servicing executive. “Our 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 services one in five residential mortgages in America. These new guidelines are part of the company’s overall commitment to help preserve homeownership and stabilize communities. This includes modifying mortgage loans for up to 630,000 borrowers over a three-year period, representing more than $100 billion in mortgages; and a $35 million neighborhood preservation and foreclosure prevention package announced last year in grants and low-cost loans/investments to nonprofit organizations for foreclosure prevention counseling and REO purchases. Bank of America also works with nonprofits to help create and offer training programs for cities and local nonprofits in communities impacted by foreclosures to buy REOs.

Source: Bank of America