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City of Boston Thomas M. Menino_ Mayor BOSTON'S ANTI-FORECLOSURE

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					BOSTON’S ANTI-FORECLOSURE STRATEGY




             City of Boston
         Thomas M. Menino, Mayor
    Department of Neighborhood Development
       Evelyn Friedman, Chief of Housing
BOSTON’S ANTI-FORECLOSURE STRATEGY

         3-PART STRATEGY:


          1. PREVENTION
         2. INTERVENTION
         3. RECLAMATION
                 1. PREVENTION BEGINS: 1999
  STEERING BUYERS AWAY FROM RISKY MORTAGES
                                                                               DON’T BORROW TROUBLE
  FORECLOSURES IN BOSTON                                                          BILLBOARD 1999
                     1990-1999
1800

1600

1400

1200

1000
                                                                             FORECLOSURE RATES 1996-2008
                                                                              3.50%
800
                                                                              3.00%
600                                                                           2.50%
                                                                              2.00%
400
                                                                              1.50%
200                                                                           1.00%
                                                                              0.50%
  0
                                                                              0.00%
       1990

              1991

                     1992

                            1993

                                   1994
                                          1995

                                                 1996

                                                        1997

                                                               1998

                                                                      1999




                                                                                      HOME CENTER   OVERALL MARKET
                                                                                        BUYERS
  1. PREVENTION CONTINUES: 2003-2005
                 THE CRISIS THAT NEVER MATERIALIZED
       FORECLOSURES IN BOSTON
                      1990-2004
                                                                2003: LEADING THE WAY II:
1800

1600
                                                               “It is critically important to
1400
                                                               prevent this trend from
                                                               growing and causing the
1200
                                                               value drops that could
1000
                                                               trigger the self-reinforcing
800
                                                               foreclosure-devaluation
600
                                                               process that destabilizes
400                                                            neighborhoods”
200

  0
                                                               Leading The Way II, pg 30
       1990


              1992


                     1994


                            1996


                                   1998


                                          2000


                                                 2002


                                                        2004
                 2. INTERVENTION BEGINS: 2006
                                                                EARLY INTERVENTION
        FORECLOSURES IN BOSTON                                                                                                FORECLOSURE PREVENTION
              1990-2005                                                                                                          TRANSIT ADS 2006
1800
                                                                              70

1600                                                                          60

                                                                              50
1400
                                                                              40

1200                                                                          30

                                                                              20
1000
                                                                              10

800                                                                             0
                                                                                           2003



                                                                                                           2004



                                                                                                                       2005
600

400

200

  0
       1990
              1991
                     1992
                            1993
                                   1994
                                          1995
                                                 1996
                                                        1997
                                                               1998
                                                                      1999
                                                                             2000
                                                                                    2001
                                                                                           2002
                                                                                                  2003
                                                                                                         2004
                                                                                                                2005
              2. INTERVENTION EXPANDS: 2007
       EXPANDED FORECLOSURE PREVENTION EFFORTS
        FORECLOSURES IN BOSTON                                                                                                  MAYOR MENINO AT
              1990-2006                                                                                                           FORECLOSURE
                                                                                                                              PREVENTION WORKSHOP
1800

1600

1400

1200

1000

800

600

400

200

  0
       1990
              1991
                     1992
                            1993
                                   1994
                                          1995
                                                 1996
                                                        1997
                                                               1998
                                                                      1999
                                                                             2000
                                                                                    2001
                                                                                           2002
                                                                                                  2003
                                                                                                         2004
                                                                                                                2005
                                                                                                                       2006
          PREVENTION & INTERVENTION:
               RESULTS TO DATE
              TURNING THE CORNER ON FORECLOSURES

                               FORECLOSURES IN BOSTON: 1990 – 2009
1800

1600

1400

1200

1000

800

600

400

200

  0
       1990

              1991

                     1992

                            1993

                                   1994

                                          1995

                                                 1996

                                                        1997

                                                               1998

                                                                      1999

                                                                             2000

                                                                                    2001

                                                                                           2002

                                                                                                  2003

                                                                                                         2004

                                                                                                                2005

                                                                                                                       2006

                                                                                                                              2007

                                                                                                                                     2008

                                                                                                                                            2009
3. RECLAMATION
3. RECLAMATION BEGINS: 2008
FIT: TARGETING THE HARDEST-HIT AREAS




    MAYOR MENINO LAUNCHING THE HENDRY
      STREET INITIATIVE, FEBRUARY 2008
       3. RECLAMATION EXPANDS: 2009
 DIRECT CITY ACQUSITIONS OF FORECLOSED PROPERTIES

42-44 WOODBINE
• CITY-NEGOTIATED PURCHASE
• AGREEMENT HANDED OVER TO AN NPO.
• GUT REHAB WITH “THIS OLD HOUSE”




                                             BEFORE



                                     AFTER
  3. RECLAMATION EXPANDS: 2009
    HELPING HOMEBUYERS PURCHASE REOs
“HOW TO BUY AN REO”   HOMEBUYER FAIR FOR REO BUYERS
  SEMINAR POSTERS       TO LEARN ABOUT NEW $15,000
                         DOWNPAYMENT ASSISTANCE
3. RECLAMATION EXPANDS: 2009/2010
         ACQUISTION OF OCCUPIED REOs


FIRST IN THE NATION
AGREEMENT WITH
BANK OF AMERICA:
OCT 2009


EXPANDED IN 2010 TO
INCLUDE:
FANNIE MAE
NCST/WELLS FARGO
                      10 CAMERON ST: The City’s First Fully-
                           Occupied REO Acquisition
     3. RECLAMATION: RESULTS TO DATE
              HENDRY STREET FIT STRATEGY



                                   • REOs reduced from 12 to 1
                                   • 12 units purchased by City
                                   • Deconverted back to 4 3-Deckers
                                   • Sold to private builder
                                   • Completed properties all sold to
                                   homebuyers
                                   • Zero public subsidy



 CELEBRATING THE COMPLETION OF
RENOVATIONS ON THE CITY-ACQUIRED
  HENDRY STREET PROPERTIES, MAY
              2009
    3. RECLAMATION: RESULTS TO DATE
                     HOMEBUYER STRATEGY

                          REO Homebuyer Assistance 2009




30 REOs/52 units
Directly Purchased
                          East Boston
by Homebuyers




                                               Condominiums     Two-Family
                                               Single-Family    Three-Family
                                                       NSP Target Area
    3. RECLAMATION: RESULTS TO DATE
               DIRECT ACQUISITIONS STRATEGY
                             REO Acquisition Working Group


101 PROPERTIES WITH
211 UNITS UNDERWAY:
PURCHASED:
  37 Houses/79 units
UNDER AGREEMENT:              East Boston

  27 Houses/51 units
IN NEGOTIATIONS:
  37 Houses/81 units
                                                 Acquired         Evaluation
                                                 Offer Accepted   New Listing
Includes 31 Occupied Units                       Offer Pending    NSP Target Area
BOSTON’S ANTI-FORECLOSURE STRATEGY

        CHALLENGES AHEAD:


          1. TIGHT CREDIT
         2. CONDOMINIUMS
        3. CHANGING MARKET
           4. RESOURCES
BOSTON’S ANTI-FORECLOSURE STRATEGY




             City of Boston
         Thomas M. Menino, Mayor
    Department of Neighborhood Development
       Evelyn Friedman, Chief of Housing

				
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