Detroit has plenty of pockets of distressed property that qualifies for federal neighborhood recovery spending.  A significant portion of American Recovery and Reinvestment Act of 2009 (ARRA) funding being released by the U.S. Housing and Urban Development (HUD) has been going toward areas with the greatest numbers of distressed property, providing buying opportunities to first-time home buyers with low- to middle-income.

Real estate professionals have the opportunity to assist home buyers in realizing grants and programs afforded by the American Recovery and Reinvestment Act of 2009 (ARRA).  One such professional is Goedert Real Estate’s Mark Goedert.  He encourages first-time home buyers to consider federal programs in order to achieve the American dream – home ownership.

Goedert says that many first-time home buyers aren’t informed of the new federal programs, don’t have any idea how to apply for them and are clueless as to how to qualify for the funds available.  His opinion is that realtors are important factors in advancing neighborhood recovery and assisting first-time home buyers in realizing government promotions.

There are clusters of distressed property in certain neighborhoods throughout many of America’s major cities.  With that in mind, some ARRA dollars were designated specifically for the Neighborhood Recovery and Stabilization (NRS) program that addresses blighted neighborhoods.  Most of the distressed homes are either vacant, abandoned or in foreclosure.  With so much distressed property in the area, certain neighborhoods are experiencing difficulty in bringing in new homeowners.

Distressed property has a tendency to lower property values of other homes in the immediate area.  It’s difficult to draw buyers to an area where property values are lower due to distressed property.  Who wants to buy a home that may decrease in value?

Goedert feels that realtors can help city officials in understanding the local housing market.  Realtors typically specialize in certain geographic areas and can assist relevant officials in targeting neighborhoods with the most need.  Realtors know their market areas to the extent that they could keep abreast of property conditions in their area and assist homebuyers with programs that will benefit the area and the new home buyers.

He was adamant that real estate professionals be aware of federal programs that can assist potential homeowners with funding available that also contributes to neighborhood stability.  The ultimate goal, he says?  Economic recovery and stabilization of the real estate industry … of course.

We here at Roost could not agree more.