The real estate business is full of acronyms. You’re familiar with many of them: CRS, GRE, NAR and globs of others. But there’s one that seems to be flying under the radar of a lot of agents and brokers. That’s a shame because it has the potential to make you richer in 2011 and beyond.
The acronym is NSP: Neighborhood Stabilization Program. NSP is addressing the housing crisis head on by creating jobs and growing local economies.
It’s nationwide and a part of the Housing and Economic Recovery Act (HERA) of 2008 and includes about $4 billion in grants to states and local governments to buy and rehabilitate foreclosed and vacant homes. A second round of funding was approved under the American Recovery and Reinvestment Act of 2009 giving grants to states, local governments and nonprofits on a competitive basis.
NSP grants are helping state and local governments, along with non-profit developers, acquire land and property, demolish or rehabilitate abandoned properties and offer down payment and closing cost assistance to low- to middle-income home buyers.
For these folks, this is an once-in-a-lifetime opportunity. NSP homes are sold at market value, unlike most rehabbed homes where the cost of construction is transferred to the homebuyer. This is creating greater opportunity for future financial security.
What’s more, HUD certified housing counseling agencies are educating homebuyers on everything from credit repair to pre-approval and understanding the loan and what to look for in a home inspection, to long-term home maintenance after the closing.
Bubba Mills, president of REO coaching and business development at Corcoran Consulting & Coaching, says another interesting part of NSP is that banks are donating some of their inventory of foreclosed homes to nonprofits, the homeless and churches.
“Agents can work with an NSP company that gets tapes [Excel spreadsheets] every week with a list of properties that need to be sold,” Mills says. “I get an e-mail every Monday with hundreds of properties to be purchased by a qualified NSP provider. Agents who work in NSP can get 10 to 15 listings a week. I know it sounds almost too good to be true, but agents can work with banks, get six percent commissions and help their community, their local churches and the homeless all at the same time.”
Mills says all the major banking institutions offer NSP, which covers all 50U.S.states. “This is good for Realtors and even better for communities,” Mills says.
Many of these NSP organizations need the help of Realtors to ensure the properties are sold in a timely manner to qualified buyers.
“This is an important and perfect program for Realtors to get involved in protecting our communities all across the country – to help communities that were once written off but now have hope,” Mills says. “It’s something all Realtors can be proud of. I just hope more Realtors start taking advantage of NSP because it gives them a unique opportunity to empower home buyers and improve their communities.”
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