Buying Foreclosed Properties

SoftSecond's 'Funds for Fixer Uppers' Program offers incentives for the purchase of foreclosed properties in eligible neighborhoods

For a limited time only, an enhanced version of MHP's SoftSecond Loan Program is available for homebuyers purchasing foreclosed condominiums, single-family, two-family, and three-family homes.

Called Funds for Fixer Uppers, this new program waives SoftSecond's first-time homebuyer requirement and raises the household income limit to under 120 percent of the area median income if the property is located in an eligible neighborhood in one of 39 communities that can receive federal Neighborhood Stabilization Program (NSP) funding.

In addition, properties in certain neighborhoods in 17 of the 39 NSP communities may also qualify for NSP rehabilitation grants of $20,000 per unit, up to a maximum of $40,000 per property. For a basic idea of how the program works and a list of eligible communities, read the Funds for Fixer Uppers Q&A.

Key steps in buying a foreclosed property

Now that you have a basic understanding, you must take the following steps:

• Confirm that the property you are interested in is a foreclosed property and located in a neighborhood eligible for NSP funding. To find out if the property or neighborhood is in one of the eligible NSP areas, go here, plug in a property address and you'll get the census tract and block group. Once you get this information, click here to see if it is an area that's eligible for the Funds for Fixer Uppers Program.
• Find out if the property you're considering is located in a census tract and block group that is also eligible for rehabilitation grant funding. If it is, you must contact the region's local rehabilitation agent, who will assess the cost of repairs. Click here to find the local rehabilitation agent.
• Receive homebuyer training from a counseling agency approved by the Massachusetts Homeownership Collaborative. For more information about SoftSecond, click here.
• Apply for a loan from a participating SoftSecond lender.
• Important note: To be eligible for Funds for Fixer Uppers, the buyer must occupy the property as their principal residence. For more specific requirements, read the Funds for Fixer Uppers Guide.

Finding a foreclosed property to purchase

Efforts are under way to help homebuyers find foreclosed properties more easily. Click here for a list of resources that are designed to help you buy a foreclosed property.

More information

For additional resources related to this program, click here. For more information, email Soft2nd@mhp.net.