City Program Helps to Buy Foreclosed Properties

Marlborough’s Community Development Authority has shown interest in new program that aims to make things easier for non-profit groups, Municipalities and housing agencies to enable them to buy foreclosed properties.

The Massachusetts Foreclosed Properties Program would provide an opportunity to the eligible buyers so that they can purchase one- to four-unit homes before they are listed on the open market.
The Citizens’ Housing and Planning Association has been working with the governor’s office and the state Congressional delegation. It hopes to launch its program by February end.

The program will help lenders to sell properties in a more efficient manner, provide affordable housing to low- and moderate-income groups, and stabilize neighborhood areas by reducing vacant and abandoned homes.

The program aims to include properties owned by lenders such as JP Morgan Chase, Bank of America, Fannie Mae and Freddie Mac.Aaron Gornstein, executive director of the planning association, said in his letter to the city’s community development office that this program will include the vast majority of real estate-owned property in Massachusetts.

The new program aims to target properties in 39 cities of Massachusetts and towns eligible for funding in the new federal Neighborhood Stabilization Program, which will offer assistance in buying and redeveloping foreclosed homes.

The local communities which are eligible for funding in the federal program include Marlborough, Framingham and Milford.Marlborough’s Community Development Authority on Thursday appointed Michelle Ciccolo of the city’s office of community development to submit a request for interest to the Housing and Planning Association.

The association serves as a point of contact between lenders and interested buyers.Community Development Authority member Lynn Faust said that Marlborough 2010 and the city’s Community Development Corporation could also be possible buyers under the new program.

The buyers will get about two weeks to decide and the houses would be sold below market rate because of savings on brokerage fees. The board members have decided that Kevin Flynn, the new executive director of community development, would be the authorized city’s contact for the association.

The members of the new program have said, the Marlborough’s Community Development Authority board is still waiting to hear if the city receives funding from the federal Neighborhood Stabilization Program. This funding would focus on the downtown area.

The city plans to use the funding in several ways like buying and selling or buying and renting of properties. There are some signs of optimism because many first time buyers are planning to buy properties through this program.

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