Bank Owned REO Properties Sold Back to Foreclosed Owners

by cassy82 | June 2, 2010 at 11:55 am

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A collaboration between a nonprofit financial institution and a home advocacy group results in bank owned REO properties in Boston being sold back to previous owners. The program has so far closed deals on 50 homes using this strategy.

Several foreclosed and bank owned REO properties in Boston, Massachusetts have been sold back or rented to their previous owners with the help of a program established by the nonprofit financial institution Boston Community Capital and the residential property advocacy group, City Life/Vida Urbana. The program is also participated in by professors and law students from Harvard Law School.

Under the program, the nonprofit buys Boston bank owned properties and foreclosed houses and then sell them to their former owners. If the previous owners cannot afford to buy the home, the institution allows them to rent the property. The program offers a revised mortgage package to the previous owners, often with lower rates, and also provides counseling to prevent them from getting foreclosed on again.

By Cassiano Travareli