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Bid winner for FHA-backed troubled mortgages named
New Jersey Community Capital successfully bid for 399 troubled mortgages, as part of a national 9,000-unit auction of properties facing foreclosure, from the U.S. Department of Housing and Urban Development.
This is the largest auction of distressed Federal Housing Administration-insured single-family home loans.
BJCC will help preserve the homes of up to 150 mortgage holders in Essex County, NJ and an additional 249 in Tampa Bay, Fla.
This purchase is part of HUD’s Neighborhood Stabilization Outcome component of the Distressed Asset Stabilization Program. The auction in intended to served as a model for other anti-foreclosure efforts across the country.
"NJCC has been a national trailblazer on practical large-scale foreclosure solutions ever since the mortgage crisis began," said Dudley Benoit, Chairman of NJCC’s Board of Directors and senior vice president and regional sales manager on JPMorgan Chase’s Commercial Term Lending team.
NJCC will implement ReStart, a home preservation program designed to address homeowners mortgage delinquencies. The program will be administered under NJCC’s National Community Capital subsidiary.
The program is designed to show a new approach in two different real estate markets, both with high numbers of foreclosure and struggling.
"The NJCC’s ReStart program is an innovative way to directly tackle the heart of the foreclosure and mortgage crisis," said Lata Reddy, vice president of corporate social responsibility at Prudential. "If ReStart proves successful, it will be a deeply impactful model that can be exported to other distressed communities across the country."
The acquisition was made possible through NJCC’s partnership with Prudential Financial ($65.97 -0.62%), MetLife ($41.85 -0.6401%) and Newport Capital Bancorp, which provided financial resources for a purchasing total of $78 million.