""First Guaranty Mortgage Corp."":http://www.fgmc.com (FGMC), a national mortgage lending firm based in Virginia, recently partnered with ""APD Solutions"":http://www.APDSolutions.com and ""Home Depot"":http://www.homedepot.com to launch an initiative aimed at accelerating the resale of REO properties and rebuilding the housing stock nationwide.[IMAGE]
Coined ""Rebuild the Dream,"" the initiative will reduce the time cycle on the sale of bank-owned homes and improve sale prices, according to a statement from FGMC.
Rebuild the Dream will provide incentives to homebuyers and real estate selling agents to use rehabilitation loans to increase the value and appeal of REO properties.
Renovation loans, several of which are offered through ""HUD"":http://www.hud.gov and ""Fannie Mae"":http://www.fanniemae.com, are often considered time-consuming, complex, and administratively burdensome during closing. FGMC hopes to change that misconception.[COLUMN_BREAK]
""This initiative will work to smooth the transaction for Realtors who otherwise would have avoided the rehabilitation loan,"" said Andrew Peters, FGMC SVP. ""We believe that many have avoided such products because of a misperception that the 203(k) loan is time consuming and difficult to close.""
Peters continued, ""Our team will work with asset managers and Realtors to cut through the proverbial red tape. Now, a Realtor will be able to market a bank-owned property to prospective buyers, suggesting they customize the house as though it were brand new.""
The Rebuild the Dream team will collaborate with Realtors, REO asset managers, and real estate agents to coordinate the marketing of REO homes and manage the administrative requirements associated with a rehabilitation loan through closing.
Atlanta-based APD Solutions, a national neighborhood revitalization firm, will work with the Home Depot to provide customer service and coordination on the delivery of the renovation services facilitated by the rehabilitation loans, including contracting on the rehabilitation work.
""Very few bank-owned homes come through the foreclosure and repossession period in good condition, which makes them far less appealing to potential buyers,"" said APD business development director, James Cromartie.
""The result is that bank-owned homes tend to stay on the market for extended periods of time,"" according to Cromartie. ""Rebuild the Dream will help shorten that period, putting people back into homes and neighborhoods more quickly - all to the community's benefit.""