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.