Source: National CLT Network, April 8, 2010
“Portland –Homeowners in Community Land Trusts (CLTs) across the nation continue to have substantially lower delinquency and foreclosure rates than owners of market-rate homes, according to survey results released today by an independent researcher at Vanderbilt University working in partnership with the National Community Land Trust (CLT) Network.
Results from the survey found that conventional homeowners were 8
times more likely to be in the process of foreclosure than CLT homeowners at the end of the 4th quarter of 2009. According to the Mortgage Bankers Association (MBA) survey of market-rate mortgages, 4.6% were in the process of foreclosure, compared to only 0.6% of CLT mortgages. This represents a widening of the gap as compared to 2008, when market rate homeowners were 6 times more likely to be in the process of foreclosure as compared to their CLT counterparts.
When the percentages of “seriously delinquent” mortgages for the end of 2009 were calculated (which includes delinquencies of 90 days or more and those in the foreclosure process), MBA percentages ranged from 5.4% to 30.6% (depending on loan types) compared to only 1.6% in CLTs. While market-rate delinquencies increased 1.3% to 7.5% from 2008, CLT percentages actually declined in that same period by 0.4%.
Community land trusts offer low-to-moderate income households the opportunity to buy homes at prices substantially below market rates, utilizing a combination of public and private subsidies. CLTs provide pre-purchase education and support that prepare families for homeownership, and after purchase, CLTs provide ongoing stewardship services to backstop homeowners for as long as they own their homes. In exchange, homeowners agree to limit
the appreciation they receive when they sell their home to keep it affordable to future generations of homebuyers.
“What this data shows is that CLTs are clearly outperforming the market. Unlike foreclosure trends in the market, which hit all time highs during 2009, CLTs keep finding ways to safeguard their homeowners from foreclosure,” said Roger Lewis, Executive Director of the National CLT Network…”
Full Press Release: Defying national trends…
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