Bulk Property Acquisition
In many communities, growing numbers of vacant, foreclosed homes pose substantial threats to residents’ stability and quality of life. These conditions create blight and drive down housing values in adjacent areas. Moreover, local governments face huge bills for maintaining vacant properties and removing hazards. In communities with only a few foreclosures and where real estate markets remain strong, buyers will often purchase distressed properties and return- them to productive use. However, as the number of foreclosed and vacant properties grows, this becomes increasingly difficult, especially in cities where real estate markets have long been stagnant. As the scale of the current foreclosure problem became apparent in 2008, many believed that the appropriate response would be a “bulk purchase:”
Holders of foreclosed homes, also referred to as “real-estate-owned” (REO) properties, would transfer packages of these assets to cities and responsible developers. Unfortunately, several significant challenges have prevented bulk purchases from going forward in more than a handful of locations.
Property Acquisition Case Study
The Living Cities case study “Purchasing Properties at Scale: Lessons on Acquiring REOs During the Foreclosure Crisis from Pioneering Projects in New Jersey, Phoenix and the Twin Cities” discusses strategies for acquiring REO properties and examines the factors and conditions that influence cities’ and nonprofits’ success in REO acquisitions. Each approach presented shares the goal of balancing publicly subsidized interventions and free-market forces. These strategies ideally will help other cities acquire properties successfully, maximizing their use of capital through sources such as the federal Neighborhood Stabilization Program3.
Property Acquisition Case Study: Purchasing Properties at Scale (PDF)
Property Acquisition Presentation
This presentation contains the material presented in the Living Cities Webinar on bulk property acquisition in a downloadable format.
Purchasing Properties at Scale: PowerPoint presentation to accompany Webinar (PPT)
Property Acquisition Webinar
This Living Cities Webinar, "Purchasing Properties at Scale: Lessons on Acquiring REOs During the Foreclosure Crisis" provides specific example of the challenges organizations face with bulk property acquisition, and how to deal with these issues.