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HUD Program Update Incorporates Nonprofits While Helping Distressed Homeowners

U.S Department of Housing and Urban Development

On April 24 the U.S Department of Housing and Urban Development (HUD) announced that they are making changes to the Distressed Asset Stabilization Program (DASP).

As a result of the changes, loan servicers are now required to delay foreclosure for a year and to evaluate all borrowers for the Home Affordable Modification Program (HAMP) or a similar loss mitigation program. HUD also made changes to encourage more nonprofit participation by giving nonprofits first look at vacant properties, allowing purchasers to re-sell notes to non-profits, and offering a nonprofit only pool.

HUD hopes these changes will “make improvements that encourage investors to work with delinquent borrowers to find the right solutions for dealing with the potential loss of their home and encourage greater non-profit participation in our sales,” said Genger Charles, Acting General Deputy Assistant Secretary, Office of Housing.

Click here to read the full announcement.



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