Partnerships

Foreclosure impacts all facets of the community. It involves families at a personal level, and then ripples through neighborhoods, schools, businesses, lending institutions, and local governments. Since the issue impacts all of these entities, they should all be considered potential partners when forming solutions

Local partnerships are critical in resolving the foreclosure crisis and should include all relevant stakeholders in order to craft sustainable solutions

By working together, partners can

• Respond more quickly to REO and abandoned properties
• Provide funding and other resources to manage vacant properties
• Provide the funding needed for rehabilitation
• Provide new affordable loan products for families wanting to buy REO homes
• Provide education and support to families who purchase these homes
• Help foreclosed-upon families rebuild their credit
• Advocate for policies that stop future abuses
• Support housing counselors working on this issue
• Support communities dealing with vacant properties

Be sure to include:

• Local, county and state governments
• Local nonprofit organizations
• Local and statewide foundations
• Lenders and servicers
• Attorneys
• Area businesses and business associations
• Neighborhood associations
• Faith-based groups
• Local colleges and universities, particularly those with policy or planning programs
• Local realtors

Partnership Functions

A problem as overwhelming as the foreclosure crisis in America—and the resulting crisis of vacant and abandoned properties—cannot be resolved by any one organization, institution or government agency. It is going to require partnerships between all of them.

Fortunately, nonprofit community development organizations are founded on the model of partnerships between the public, private, and resident sectors. Most have a long history of bringing community stakeholders to the table.

The cooperation of local government is critical. Assuming they have the resources to do it, local agencies can: 

• Keep track of property ownership, so that vacant, abandoned or dangerous properties are identified quickly
• Enforce relevant codes to force property owners to sell or rehabilitate properties that are vacant or abandoned;
• Quickly Gain physical and legal control of abandoned or vacant properties.

Other key partners are banks, credit unions and other lending institutions, which can work with nonprofit organizations to devise financing strategies for acquiring, rehabilitating and selling these properties.

Residents are also important, especially as allies in keeping up neighborhood morale and keeping vacant property presentable (e.g., mowing the grass and cleaning up trash). Residents can form neighborhood watch groups to monitor vacant properties for criminal activity and notify police if anyone takes up illegal residence.