NSP FAQ
Q

What are the definitions of abandoned and foreclosed?

Date Published: October 2012

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A

A home or residential property is considered abandoned under NSP if any one of the following applies:

  • Mortgage, tribal leasehold, or tax payments are at least 90 days delinquent;
  • A code enforcement inspection has determined that the property is not habitable and the owner has taken no corrective actions within 90 days of notification of the deficiencies; or
  • The property is subject to a court-ordered receivership or nuisance abatement related to abandonment pursuant to state or local law or otherwise meets a state definition of an abandoned home or residential property.

A home or residential property is considered foreclosed under NSP if any one of the following applies:

  • The property’s current delinquency status is at least 60 days delinquent under the Mortgage Bankers of America delinquency calculation and the owner has been notified of this delinquency;
  • The property owner is 90 days or more delinquent on tax payments;
  • Under state, local, or tribal law, foreclosure proceedings have been initiated or completed; or
  • Foreclosure proceedings have been completed and title has been transferred to an intermediary aggregator or servicer that is not an NSP grantee, subrecipient, contractor, developer, or end user.

The current definitions of abandoned and foreclosed which are applicable to all NSP activities can be found in the Notice of Change in Definitions and Modification to Neighborhood Stabilization Program (NSP) issued April 9, 2012. The NSP Policy Alert: Guidance on the Impact of New Definitions for NSP-Eligible Properties published April 2, 2010 provides information on how the new definitions impacted NSP1 and NSP2 grantees and discusses different scenarios of properties that are considered abandoned and foreclosed.


Tags: NSP Program Requirements - Eligible Activities/Uses

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FAQ ID:

849