- Who is NCST?
- What services does NCST provide to state and local programs seeking to stabilize distressed communities?
- What services does NCST provide to financial institutions seeking to help stabilize distressed communities?
- What do you mean by “left-behind neighborhoods?”
- I have heard in the news about “zombie properties” – what are these?
- Who are participating sellers?
- Who are eligible buyers?
- What criteria should qualified buyers meet?
- How does the NCST Property Acquisition Program work?
- How are property closings executed?
- How many local entities can participate within a jurisdiction?
- If a Buyer is participating with NCST, does this limit their ability to acquire properties from other sources?
- How many properties must a Buyer purchase to participate with NCST?
- How do I get started?
Who is NCST?
NCST is a non-profit organization that works to restore vacant and abandoned properties to productive use and protect neighborhoods from blight. Our programs facilitate the rehabilitation of vacant but structurally sound homes, enable safe, targeted demolition when necessary, and support creative and productive re-use of vacant land.
What services does NCST provide to state and local programs seeking to stabilize distressed communities?
NCST offers local housing providers (Buyers) streamlined access to the REO inventories of financial institutions (Sellers).
NCST Assists with Acquiring Properties:
- Save your time and effort – We act as a single point-of-contact with the Sellers, which saves the Buyers’ time and effort as they avoid negotiating with multiple entities to purchase REO properties.
- Simplify the process – We provide a standardized process for identifying, inspecting and evaluating property offers from Sellers.
- Offer exclusive property access and pricing – We give Buyers the opportunity to access REO on a First Look basis, before Sellers offer properties to the broader market.
NCST Supports Your Financing Needs. Through the REO Capital Fund, we support financing for the purchase and rehabilitation of foreclosed and abandoned property. We can provide flexible financing for short- and intermediate-term needs, and offer important advantages:
- Leverage More Capital – Through flexible sources of funds, localities can increase the impact of their public funding and increase the scale of neighborhood stabilization activities.
- Access to Flexible Financing – REO Capital Fund financing can provide cash for quicker acquisition transactions of REO properties, to facilitate acquisition and renovation, and to increase available financing for homeownership and rental projects.
Product types include bridge financing for government receivables or acquisition and rehabilitation financing.
What services does NCST provide to financial institutions seeking to help stabilize distressed communities?
NCST works with financial institutions to facilitate the transfer of foreclosed, abandoned and distressed assets in a seamless, cost-effective manner to local housing providers that intend to stabilize their communities and provide new affordable housing opportunities. We can also help identify responsible approaches to providing mortgage capital for new mortgage-ready buyers and investors.
What do you mean by “left-behind neighborhoods?”
“Left-behind neighborhoods” are communities with a high rate of vacant, abandoned and distressed properties that depress the value of nearby homes, create health and safety risks, lower local tax revenues and complicate challenging neighborhood stabilization efforts. A growing divide permeates the U.S. housing recovery, especially in many working class communities – our nation cannot ignore these neighborhoods.
I have heard in the news about “zombie properties” – what are these?
A zombie property is a property for which a foreclosure case was filed, but has not yet been resolved. Neither the borrower nor the Servicer has clear control of the property, and neither has a strong incentive to assume responsibility. Zombie properties are likely to be poorly maintained or blighted, pose a public safety hazard, and threaten the stability of the neighborhood and the community. We work with community buyers and financial institutions to resolve these properties viaThe Reclaim Project.
Who are participating sellers?
Many of the leading financial institutions in America participate with NCST, supporting the transfer of foreclosed and abandoned properties.
Who are eligible buyers?
NCST partners with non-profit (501c3)*, local housing providers (“buyers”) that serve low- to moderate-income communities and neighborhoods affected by high levels of foreclosure and abandonment. Eligible buyers have a commitment to revitalize communities through property acquisition and rehabilitation, and provide opportunities for quality affordable homeownership or rental housing.
*NOTE: In rare circumstances and in certain markets, NCST may work with for-profit organizations working in partnership with local nonprofit organizations.
What criteria should qualified buyers meet?
We want to ensure the success of organizations participating in our programs and of local efforts to restore neighborhood vitality. In addition to buyers meeting our eligibility requirements, a coordinated local neighborhood stabilization effort should demonstrate:
- Collaboration. An established partnership with government agencies, nonprofit organizations and other local stakeholders that defines the roles and accountability of each participant.
- Concentration. Focus on one or more defined geographic areas to increase the likelihood that a significant, visible impact can be achieved.
- Comprehensiveness. Bricks and mortar activities such as the acquisition and rehabilitation of properties, should be complemented by a broader strategy, that includes infrastructure improvements, social investments, a marketing campaign, and other tangible and intangible community efforts.
- Capacity. Include organizations with the ability to assess, acquire, manage, rehab and convey properties to scale.
- Capital. Sufficient resources from public and private resources to conduct a successful stabilization program.
How does the NCST Property Acquisition Program work?
NCST offers two types of acquisition options designed to help Buyers acquire significant numbers of foreclosed and vacant properties from sellers:
First Look Program. Gives Buyers the opportunity to inspect and acquire foreclosed and vacant properties before they are listed for sale through traditional means. This program offers an adjusted purchase price that reflects savings passed on to the buyers from the sellers, as they avoid a prolonged holding period.
Targeted Aged/Listed Purchase Program: Gives Buyers the opportunity to purchase properties previously marketed by Sellers. Buyers can purchase bulk portfolios of distressed properties, that comprise aged inventory, and are offered at pricing similar to the First Look program.
How are property closings executed?
NCST does not acquire title to property. We facilitate the transfer of properties by providing standardized documentation and transaction procedures.
How many local entities can participate within a jurisdiction?
A state, large city, or multi-county program may have more than one entity participating as a Buyer, but the geographic boundaries of the areas where the different Buyer entities operate typically should not overlap.
If a Buyer is participating with NCST, does this limit their ability to acquire properties from other sources?
No. Buyers may purchase properties from brokers, directly from financial institutions, or from other sources.
How many properties must a Buyer purchase to participate with NCST?
Buyers are not held to a minimum purchase requirement; however, the objective of NCST is to assist local Buyers in addressing the factors contributing to market distress. Buyers are encouraged to acquire a sufficient volume of properties to achieve the benefits from geographically concentrated acquisition activity.
How do I get started?
Please contact us today using our online form.