HUD announced this week that it is changing how it defines foreclosed and abandoned properties.
At HUD, foreclosed used to apply only to properties that had completed the foreclosure process. Now, foreclosed at HUD also encompasses properties in default.
The agency used abandoned to define property that had been foreclosed on and had been vacant for at least 90 days. Now, abandoned includes homes with lingering code violations and those where mortgage or tax payments are more than 90 days overdue.
HUD officials say the new wordsmith-ing will help communities acquire, rehabilitate, and re-sell foreclosed and abandoned properties more quickly under the Neighborhood Stabilization Program (NSP) and help prevent further decline in hard-hit neighborhoods.
The changes come just as reports are surfacing that states and local municipalities have spent less than half of the $4 billion available through the NSP initiative to buy up distressed properties in their communities.
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