FHFA Will Allow Foreclosed Homeowners to Repurchase Their Homes Through Programs Like BCC's SUN Initiative
Last week, the Federal Housing Finance Agency announced that it will allow Fannie Mae and Freddie Mac to sell foreclosed properties back to their owners at fair-market values. Boston Community Capital has long advocated for such a step, which will allow the Stabilizing Urban Neighborhoods (SUN) Initiative to assist homeowners whose mortgages are held by Fannie Mae and Freddie Mac to repurchase their homes after foreclosure with a mortgage that they can afford.
SUN can now accept referrals from applicants facing foreclosure in Massachusetts, Rhode Island, Maryland or Illinois who have Fannie Mae- or Freddie Mac-held loans. To apply, visit our SUN's webpage.
"Today's move by the FHFA is an encouraging step in the right direction. It makes sense for homeowners and it makes sense for neighborhoods," said Elyse Cherry, CEO of BCC. "In our experience at Boston Community Capital, permitting sales at fair-market value is a just and sound strategy for helping the many underwater homeowners still seeking relief. We will continue to monitor FHFA's commitment to this policy."
Elyse Cherry appeared on NPR's Marketplace to discuss the announcement; her remarks were also quoted in The Wall Street Journal, The Washington Post and Bloomberg. Click the links below to read more.
- The Wall Street Journal, "Fannie, Freddie Give Some Relief to Foreclosed Homeowners"
- WonkBlog of The Washington Post, "Thousands of people can now buy back the homes they lost to foreclosure"
- Bloomberg, "Fannie, Freddie to Allow Debt Cuts for Foreclosed Borrowers"