How Down River Michigan Realtors are helping First-time Home Buyers and Contributing to Neighborhood Recovery and Stabilization Programs

The rising rate of foreclosures has left vacant homes that become dangerous eye-sores in neighborhoods and further decrease values of nearby properties. As a result of the mortgage melt-down these foreclosed, vacant and abandoned homes were clustered in areas making it difficult to market and sell property in an entire neighborhood. Recovery strategies are critical to address the neighborhood impacts of foreclosures and assist in rebuilding a healthy real estate and financial market.

In September of 2008, HUD released regulations to provide local governments across the country with supplemental grant money to assist in stabilizing neighborhoods suffering the effects of high foreclosures. Entire communities are affected as foreclosed homes become vacant and fall into disrepair and neighboring homeowners’ property values decline. The vacant properties are a danger to the area and they are subject to vandalism and fire.

Realtors can play an important role in contributing their efforts to support neighborhood recovery and stabilization and utilizing NSP funds. They are professionals who know the neighborhoods and have worked with the community for years.

Realtors can help local officials understand the local housing market in particular neighborhoods and monitor property conditions to ensure effectiveness of these programs.

Realtors can help target the programs to certain areas that will benefit most from stabilization programs. They can monitor changes in the market so efforts can be adjusted to accomplish the intended goal.

Realtors are often working with mortgage servicers who are responsible for the upkeep of some of the foreclosed homes. They can help local officials enforce their efforts in neighborhoods that have a high percentage of vacant and foreclosed homes.

Realtors can offer their assistance with working with REO agents, lenders and servicers, creating lines of communication and helping with the acquisition process.

Real estate agents can play a huge role in marketing properties that have been rehabilitated with NSP funds. Realtors should be familiar with utilizing the different loan programs, grants and tax credits available to home buyers.

With their knowledge of the area, understanding the market and how to access and utilize federal program funds and grants, Realtors can contribute a lot to the Neighborhood Recovery and Stabilization Programs.

Mark Goedert is the founder of Goedert Real Estate providing many valuable resources to South East Michigan realtors and home buyers for over 50 years. Mark Goedert serves clients in the Down River area, Calhoun, Battle Creek, Marshall, Albion, Hillsdale, Ingham, Lansing, Okemos, Mason, Jackson, Lenawee, Adrian, Tecumseh, Hudson, Livingston, Howell, Brighton, Pinckney, Macomb, Sterling Heights, Warren, St. Clair Shores, Monroe, Temperance, Bedford, Oakland, Farmington Hills, Royal Oak, Southfield, Washtenaw, Ann Arbor, Ypsilanti, Saline, Wayne, Detroit, Dearborn, Livonia, Canton, Trenton and more in South East Michigan.

Stimulus Package: Neighborhood Stabilization Plans - Benefits to Realtors and First-time Home Buyers in Down River, Washtenaw County, Michigan

A bill passed in February to provide funding for the Neighborhood Stabilization Program (NSP), which was created to provide grants to address problems created when entire neighborhoods are decimated by foreclosures.

The funds can be used to purchase, manage, maintain, demolish or repair and resell foreclosed and abandoned properties. States and localities can use these funds to establish financing methods for the purchase and redevelopment of foreclosed houses.

Funds can also be used to offer financial assistance to low and middle income home buyers. After purchase with these funds the homes must be used to assist qualifying families who are considered to be low-income and 25% of the funds must be used to help households with income at or below 50% of the area median.

Funding will be focused on areas that need it the most with need-calculations being determined by HUD based on the capacity of the lead applicant to execute projects, leverage potential and concentration of investment to achieve neighborhood stabilization.

Realtors who are knowledgeable of the different provisions in the Stimulus Package can make important contributions to their local community neighborhood stabilization program. They can provide advice to home buyers about utilizing helpful programs that they may not be aware of.

Realtors can use their knowledge of the neighborhoods to stimulate sales in neighborhoods where there are a lot of foreclosures and vacant houses. Unoccupied homes destroy property values; neighborhoods are much more desirable when there are no rundown properties suffering from lack of maintenance.

Other provisions of the Stimulus Plan include:

First Time Homebuyer Tax Credit
FHA, Fannie Mae and Freddie Mac Loan Limits
Commercial Real Estate
Rural Housing Services
Low Income Housing Grants
Tax Exempt Housing Bonds
Energy Efficient Housing Tax Credits and Grants
Transportation Investments
Broadband Deployment

Mark Goedert of Goedert Real Estate provides information, products and resources for real estate investors, REO agents, first-time home buyers and individuals who are selling their home.


Mark Goedert serves clients in the Down River area, Calhoun, Battle Creek, Marshall, Albion, Hillsdale, Ingham, Lansing, Okemos, Mason, Jackson, Lenawee, Adrian, Tecumseh, Hudson, Livingston, Howell, Brighton, Pinckney, Macomb, Sterling Heights, Warren, St. Clair Shores, Monroe, Temperance, Bedford, Oakland, Farmington Hills, Royal Oak, Southfield, Washtenaw, Ann Arbor, Ypsilanti, Saline, Wayne, Detroit, Dearborn, Livonia, Canton, Trenton and more in South East Michigan.