NEIGHBORHOOD STABILIZATION

PROGRAM (NSP)

BULK SALES INITIATIVE

HUD's new Neighborhood Stabilization Program will provide emergency assistance to state and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities. The Neighborhood Stabilization Program (NSP) provides grants to every state and certain local communities to purchase foreclosed or abandoned homes and to rehabilitate, resell, or redevelop these homes in order to stabilize neighborhoods and stem the decline of house values of neighboring homes..

ELIGIBLE PROPERTIES

All HUD properties that have been marketed for 60 or more days with no acceptable offers will become eligible for purchase by eligible NSP Participants. HMBI will identify eligible properties on www.hmbiweb.com. Information on lead based paint (LBP) inspection and testing on the properties will be disclosed on the listing, however, no LBP stabilization will be performed when purchased by eligible participants.

PURCHASE PRICE AND DISCOUNTS

NSP participants may purchase eligible properties with the following discounts:

  • Properties with appraised values greater than $100,000 shall receive a ten (10%) percent discount of the appraised value of the property.
  • Properties with appraised values of $100,000 or less shall receive a fifty (50%) percent discount of the appraised value of the property.
  • Properties with appraised values of $20,000 or less and designated by HUD to be demolished will be sold for $100. The cost of demolition will be the responsibility of the purchaser.

NSP participants purchasing 50 or more properties will receive an additional five (5%) discount.

EARNEST MONEY REQUIREMENTS

No earnest money deposits are required by NSP participants purchasing in the bulk sale.

BROKER COMMISSIONS & CLOSING COSTS

No broker commissions will be paid as the NSP participant is using their own NAID number to submit offers, so no broker representation is necessary.
Closing costs are the responsibility of the NSP purchaser.

REQUIRED DOCUMENTS

A copy of your NSP recipient documentation will be submitted to HMBI. Completed HUD 9548 Sales Contract Package for each property purchased as part of the bulk sale.

CLOSING TIME FRAME

Thirty (30) days. Regular extension fees will apply.

Please notify HMBI if a closing extension beyond 30 days is needed. All extensions will be granted at HUD's discretion.