Posted on September 10, 2008
NEW BEDFORD, Sept. 5, 2008 --- In an example of how cities can turn foreclosed and abandoned properties into assets in the community, New Bedford Mayor Scott W. Lang joined with representatives from Bank of America and MHP to congratulate first-time homebuyer
Noah Griffith, who bought a rehabilitated three-family property with a SoftSecond loan.
The property, located in the Cove neighborhood of the city, was seized by the city for back taxes in 2006 and totally renovated. It was sold to Griffith, who works for Colonial Beverage, for $194,900.
After presenting the keys to the home to Griffith on Friday, Sept. 5, Lang said, “This is the type of project that is propelling the revitalization of New Bedford’s neighborhoods in a very targeted way. It dramatically improves the neighborhood by transforming a once blighted property and creates an opportunity for a first time homebuyer to purchase an affordable home, in move in condition.”
The project involved the complete renovation of the three-family home with an average of 1,200 square feet of living space per unit. Each unit includes three bedrooms, one large bathroom, hardwood floors, large kitchens with new appliances, a new roof, windows, new heating and energy efficient hot water systems, and a maintenance-free exterior.
Bank of America provides SoftSecond loan
The property was developed through the city's Neighborhoods First Program, which aims to restore properties as homeownership opportunities for first-time homebuyers. The city originally obtained the distressed three- family property through a tax title process. Utilizing financing available through the U.S. Department of Housing and Urban Development’s HOME Program, the City’s Office of Housing and Community Development completely renovated the vacant and abandoned property.
Bank of America coordinated the lottery and prequalification process for the project. In addition to underwriting potential loan applicants, Bank of America is providing the new homeowner with very advantageous financing via the SoftSecond Loan Program, a mortgage program offered by Bank of America in partnership with the Commonwealth of Massachusetts.
With SoftSecond, the new homeowner will be receiving fixed-rate first and second mortgages from Bank of America. The second mortgage will be supported by a state subsidy that will lower his monthly mortgage payments by about 20 percent and enable him to avoid paying for costly private mortgage insurance since the loan is backed by the state. Bank of America has made over 4600 SoftSecond loans in Massachusetts since 1991, more than any other participating lender.
“Bank of America is proud to support the City of New Bedford’s “Neighborhoods First” initiative,” said Simon Tahan, Bank of America Mortgage Executive for New England. “We stand ready to help municipalities as they complete the very important mission to renovate previously foreclosed homes and keep neighborhoods strong and vibrant.”
Low delinquency, foreclosure rates
Created in 1990 to give minority and lower-income families better access to safe, secure mortgage financing, SoftSecond has helped nearly 12,000 families purchase their first home. The program requires a small three percent down payment, of which 1.5 percent can be a gift from the City of New Bedford’s first-time homebuyer’s program. SoftSecond borrowers must take pre-and post-purchase homebuyer classes. As a result, SoftSecond delinquent payment and foreclosure rates are lower than other loan programs, with a below average delinquency rate of 1.9 percent and a foreclosure rate of 0.36 percent. For more information about SoftSecond, click here.
“MHP and the Patrick Administration understand that hard-working citizens like Noah Griffith need safe, low-cost mortgages, especially in the wake of problems caused in the housing market by sub-prime mortgages,” said Clark Zielger, Executive Director of the Massachusetts Housing Partnership, the quasi-state agency that helped create and administers the program. “Thanks to strong, supportive and longtime partners like Bank of America and the City of New Bedford, the SoftSecond program continues to be a wonderful option for first-time homebuyers.”
Lori Moring, housing coordinator for New Bedford coordinated the development of the project, the housing lottery as well as providing the down payment and closing cost assistance and gap financing assistance through the HOME Program to Mr. Griffith, the first time home buyer.
For more information about this project contact the City of New Bedford's Office of Housing and Community Development at (508) 979-1500.