I hope you’re not sick of all the wet weather talk we’re hearing these days because it’s not ending here. Over the next year the biggest wave in REO (real estate owned) properties, or foreclosures as it’s most commonly called, will come from HUD (U.S. Dept. of Housing and Urban Development).
This is great news for buyer’s, especially first time buyers looking to get into the market. The amount of HUD REO properties could exceed both those of Fannie Mae and Freddie Mac REO. Fannie Mae’s inventory fell in the 2nd quarter of 2011 to 135,719 homes down 11% from the 1st quarter 2011. Freddie Mac’s inventory fell in the same period 7.5% to 60,618 homes. HUD inventory rose 54.2% from 2010 to 2011.
What can be done to move these properties? HUD has many programs to facilitate home ownership. One of the many HUD programs that will benefit from these REO homes is the “Good Neighbor Next Door” program. This program is an initiative designed to encourage renewal of revitalization areas by providing an opportunity for law enforcement officers, firefighters, emergency medical technicians and teachers to purchase homes in these communities. HUD provides a substantial incentive in the form of a 50% discount off the list price of eligible properties.
So, this crazy mess of an economy may not be over yet but if you have the means now is the perfect to to capitalize on programs out there to put people in homes. Please contact us today to get more information on these and other programs.
Feature Photo Credit: thelastminute
Post Photo Credit: rachel_thecat