Foreclosed buildings to get new lease on life

The so-called Massachusetts Foreclosed Properties Initiative was outlined by Gornstein and Governor Deval Patrick in New Bedford, one of many Massachusetts cities with neighborhoods damaged by foreclosures. Last year, mortgage holders seized more than 12,000 Massachusetts homes in foreclosure, more than triple the number in 2006, according to Warren Group, which tracks real estate transactions.

CHAPA will help to connect banks and other lenders that own foreclosed properties with local housing organizations and municipal agencies. Participating companies, including the mortgage giants Fannie Mae and Freddie Mac and Bank of America Corp., will allow eligible purchasers to see the properties before they are listed on the open market. Banks also agreed to sell multiple foreclosed properties in certain neighborhoods to local organizations.