The U.S Department of Housing and Urban Development has announced a new loan program available throughout 32 states and Puerto Rico. Unemployed residents of select states are getting what HUD deems “bridge loans” for residents who may be out of work and have temporarily fallen behind on their mortgage payments. The loans are part of a $1 billion initiative from HUD and will offer loans up to $50,000.

Borrowers need to be at least 3 months behind on their mortgages to qualify for these loans and states previously ineligible for federal aid, such as Wisconsin, may now benefit. Borrowers most likely to receive this benefit are most oftentimes those in a position to resume their regular payments within 2 years.

States across the country will hopefully benefit. With fewer foreclosures on the market more homeowners will likely be able to remain in their homes, putting less stress on the banks due to foreclosures.

Homeowners with a second home will not qualify, and homeowners must demonstrate a minimum 15% decline in their income before their mortgage payments faltered.

“In crafting this new loan program, HUD built on the lessons learned from Treasury’s Hardest Hit initiative to design and implement a program to assist struggling unemployed homeowners avoid preventable foreclosures. Together these two initiatives represent a combined $8.6 billion investment to help struggling borrowers and, in doing so, further contribute to the Obama Administration’s efforts to stabilize housing markets and communities across the country,” says HUD Northwest Regional Administrator Mary McBride.

Efforts, both local and federal have been made consistently throughout the foreclosure crisis to assist homeowners who may have lost their jobs and are in danger of losing their home. States’ crisis levels vary and federal programs have answered the calls through both this program and initiatives prior.

Applications will be accepted through the end of the year and not all loans necessarily have to be repaid, a numbered amount of recipients may be eligible for this program and acceptance of the funds would essentially become a gift.

“No payment is due on the note during the 5 year term so long as the assisted household maintains the property as principal residence and remains current in his or her monthly payments on the first mortgage loan. If the homeowner meets these two conditions, the balance due shall decline by twenty percent (20%) annually, until the note is extinguished and the junior loan is terminated.”

For homeowners across the nation that fit the bill this provision from HUD may be a saving grace and a way to stay in their home.

The real estate market will benefit as well, with less foreclosure homes on the market housing prices and mortgages rates will become steadier for buyers and sellers alike. If you think you are eligible for this program contact a local realtor or check out www.hud.gov.

During the real estate crisis that plagued much of the nation, many homeowners have suffered the loss of their homes. Most have fought to stay and pay their mortgages. However, there are also select property owners that have purposely let their investments fall to the wayside while the market has dipped. The property owners discussed in this article have avoided the upkeep of their homes while in the process of foreclosure or bankruptcy. This lack of maintenance or the reasons behind it are not news, however, a new tactic to handle these “blighted properties”, pioneered by Mayor Tom McMahon of Reading, PA, has made headlines.

Enforcing Property Maintenance

Until now, it has been a difficult task to enforce property owners to maintain their dwellings. Once the property is back into the hands of the lender the maintenance or tearing down of the property can resume, but that often takes months. Property owners in the neighboring area will see their homes depreciate in value during the interim.

Reading, PA Mayor Tom McMahon has come up with a unique strategy to handle this issue. In “Owners of Blighted Property Shamed Online”, McMahon discusses his idea. Rather than continue hitting a wall trying to work with irresponsible property owners, McMahon has turned to publicly shaming them by posting these decrepit houses on a new web site deemed the Reading, PA Wall of Shame. Complete with the name and address of the owner, this site contains photos of these properties, some even have cartoon bubbles mocking how damaged they are. To a few, this may seem to be an extreme approach; however, what is the best way to enforce property maintenance in a shaky market?

Many certainly understand and condone his position. A rundown property can affect an entire neighborhood’s resale value. For homeowners who have managed to pay their mortgages and maintain their homes, this can be an extremely frustrating scenario.

Neglected Properties Depreciate Neighborhoods Nationwide

“We are ramping up our focus on irresponsible property owners that are bringing blight into our city neighborhoods,” McMahon said in a statement Monday after touring one property. This one town has around 60 properties McMahon terms as “blighted” and he would like to see the number brought down. 10 of these properties are currently in court proceedings. The other 50 will simply continue to sit in their devalued state until a settlement has been made in the courts.

Most of us know that pushing paperwork in the courts takes a long time, and the more depleted a property becomes, the more a neighborhood will suffer. McMahon’s approach is unique, and definitely brings attention to these blighted properties, though residents have yet to see the results.

Regardless of whether or not you live in a quaint, rural landscape or a bustling city neighborhood, the commodities and attractions within walking distance of your home may weigh on the minds of first time home buyers more than you’d think. Recently on HouseLogic , Sacha Cohen refers to a study conducted by CEOs for Cities where the findings showed that pedestrian-friendly areas may be more sought after than those requiring residents to drive around for their everyday necessities.

What designates a pedestrian-friendly neighborhood, exactly? For those selling homes in places where schools, parks, businesses and other amenities are within walking distance, their houses received a higher “Walk Score” in the CEOs for Cities study (PDF), whereas those houses situated so that the locals rely on public transportation or fill up their gas tank on the way to the grocery store have lower ones. By scouring through data from nearly 100,000 real estate transactions, CEOs for Cities found that 13 out of 15 markets have the easily walkable abodes ranking higher on the value scale.

For first time home buyers, this information is valuable for two reasons.

1. You have a better understanding as to how the value of a home is decided upon
2. You have a point of reference for hunting out properties that are more suitable for your budget

Though testing a home’s walkability score isn’t necessarily one of the first steps to buying a house, its affect on real estate market analysis is undeniable and homeowners are now looking for ways to improve the walkability of their homes in order to up the ante on the value front. Cohen links us to a few walkability tips from John Wetmore, the producer of Perils for Pedestrians Television:

• Trim shrubbery that’s blocking the sidewalk in front of your house.
• Pick up trash and litter to make it a more pleasant place.
• Support initiatives in your town to build new sidewalks and repair existing sidewalks.
• Be polite to other drivers and pedestrians when you drive.
• Set an example by walking more by yourself or with your family.

Even if you’re not selling homes and looking to raise the bar when it comes to your property value or if you’re just starting out on the house hunt, Cohen’s raised points regarding walkability are important when it comes to the safety and value of your new or current neighborhood.

Sustainable, local, eco-friendly: These are all “green” buzzwords that have been making their mark on consumer trends in fashion, food, and now most recently, real estate. As consumers grow more and more conscious of the effects their daily spending can have on the environment, “going green” is a lifestyle choice that has begun, and will grow in prevalence, to affect real estate market analysis. In a recent post published by the National Association of Realtors, the Green MLS Tool Kit is introduced as a helpful resource for first time home buyers and realtors alike to look for green homes.

As quoted on Realtor.org:

“Realtors® are the best source for real estate information and have access to the most comprehensive data in the world,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associate in Tucson, Ariz. “NAR research has consistently shown that there is a considerable and growing market for green buildings. The approach of Earth Day on April 22 only underscores the fact that many of today’s consumers want homes and communities that are sensitive to the larger environment. The Green MLS Tool Kit allows Realtors® to support this growing market.”

Whether selling commercial properties or walking prospective new owners through the steps to buying a house on a greener scale, the Green MLS Tool Kit is one that will help realtors, and in turn, their eco-savvy clients, with finding the perfect green property. The National Association of Realtors continues on to discuss the merits of the tool kit, drawing attention to its suggestions for effective changes within the green home industry while introducing multiple resources for NAR members to get their MLS on the green side.

In addition to taking the wellbeing of the environment into consideration, going green has numerous cost-effective benefits that are particularly attractive to first time home buyers. Through the advantages of the Green MLS Tool Kit, more informed choices regarding aspects of green living are now integral discussion points for realtors, homeowners, and those who are seeing the industry-changing affects “going green” can have on the national real estate market.

Since the Obama Administration took office, it seemed that their goal was to keep home owners in their homes. Now, the strategy appears to have changed with a recent announcement from the U.S. Treasury. Recently, the Treasury revealed that it would encourage home owners to leave their properties – by paying them. It is believed that the new plan will prompt home owners that are behind on their mortgages to choose short sales, which could reduce the amount of foreclosures throughout America.

During short sales, home owners who are delinquent on their mortgages agree to sell their houses for less than the remaining balance of the loan. In return, banks and mortgage lenders agree to undertake losses (in lieu of not receiving any debt service from borrowers).

With an increase in short sales being eminent, many people are wondering what bearing Obama’s short sale plan will have on the real estate market. With the new plan coming into play, there are a few things people with a mortgage can expect.

First, fewer people may pursue loan modifications. In the recent past, big banks said that they were committed to helping struggling home owners who had defaulted on their mortgages. Yet, according to ABC News, of the 1.1 million people that have requested help from banks, only 168,000 have completed loan modifications this year. With the loan modification success rate being so low, more home owners may view short sales as a viable option.

Next, the number of foreclosures may decrease as the number of short sales continues to increase. Finally, more home buyers will choose to purchase short sale properties. Prior to the plan, home buyers and real estate agents wanted little to do with short sales because these real estate transactions involve long waits and complicated paperwork. Now, due to the increase in short sales and bargain prices, more home buyers will stop turning a blind eye to these types of properties.

While it is still too early to determine how US real estate markets will be impacted by the President’s short sale plan, it is apparent that more home owners will be persuaded to sell their homes and receive a payout than enter into foreclosure.