My Real Estate Blog

The FHA's First Look Initiative's purpose is to help communities stabilize neighborhoods that have been hit hard by foreclosure. HUD Secretary, Shawn Donovan, announced this initiative giving state and local governments, and non-profit organizations participating in HUD's Neighborhood Stabilization Program (NSP) preference to acquire homes from the Department's foreclosure inventory.

The First Look Initiative is a marriage of two programs to accelerate the effort to confront property abandonment in communities struggling to overcome the effects of the foreclosure crisis.  By essentially giving the Neighborhood Stabilization Program participants a first bite at the apple, the hope is to accelerate the sale of FHA's foreclosed properties while supporting the Obama Administration's neighborhood stabilization efforts.

HUD reports, that the sale of HUD Homes under the FHA's First Look Sales Method will align the Neighborhood Stabilization Program and FHA requirements to provide participants an exclusive option to purchase HUD homes before they are marketed to other purchasers.

Neighborhood Stabilization Program participants will have the first chance to purchase HUD homes at a 10% discount for only a 2 week period from the conveyance of the property to FHA.  This method will be in place until May 31, 2013.

Being able to purchase these properties will help communities to create jobs and rehabilitate vacant homes.  

There are certain states that have more than their fair share of foreclosure activity. 10 states account for more than 70% of the national total. California takes the lion's share, at 22%. Florida, has a high level as well, at 16%.

The top metro area for foreclosures was Vallejo-Fairfield, CA, with one out of every 101 properties receiving a foreclosure notice.  All metro areas listed in the top 10 were located in California, Nevada, and Florida.