Hello neighbors,

HUD recently announced a new initiative that will give state and local governments and non profits apart of the Neighborhood Stabilization Program (NSP) the option to purchase it's REO's at a 10% discount.

In addition, HUD's new initiative will allow these buyers a 14 day period to determine if they are willing to buy the property before investors.

As for a little background, third rounds of NSP grants were announced a couple of months ago back in May that would go along with a $6 billion award from September 2008. Money from these grants are used in ways such as: to rehabilitate vacant homes to create jobs and promote growth among local economies, to assist low and middle income buyers with down payments and closing cost, and the formation of state land banks that can acquire HUD foreclosed properties.

The new HUD first-look program for its NSP funding will be effective Monday and will continue through May 31, 2013. Also homes that are not sold within the initial 14 day period will be listed and sold by the standards of the Federal Housing Administration (FHA).