The Gwinnett County Board of Commissioners is trying to assist individuals and families in obtaining affordable housing in Gwinnett. Neighborhood Stabilization Programs (NSP) have been around for a while, but this program that is specific to Gwinnett is new and short term. The program is funded by the US Department of Housing and Urban Development (HUD) with additional NSP funds coming through the Georgia Department of Community Affairs (DCA). Downpayment and closing cost assistance is available. Each NSP homebuyer is offered a second mortgage of $22,500 with no interest and no payments. For homebuyers who live in the house 15 years the loan will be forgiven. What a deal!!

Through NSP, foreclosed homes have been purchased, updated, and improved to provide excellent homes. Depending on the condition of the home, new carpet, heating and cooling systems, updated kitchens and baths, exterior and interior painting, new landscaping, and use of energy-saving materials are just some of the improvements being made. You will get a high quality home that will pass inspections and meet mortgage standards.

To qualify, you must fall into one of the three categories below:

• A first-time homebuyer (have not owned a home in the last three years.) or
• Be employed by a government unit or educational or healthcare provider, or
• Be a surviving spouse of a military serviceperson or a public protector,  or
• A single parent

Mold has been a hot topic recently in real estate transactions and is always a concern if there is a sign of water intrusion in a home. There are a lot of misperceptions about mold, so here are some facts and resources to help sort it all out for you. First of all, let's define what mold is: Molds are forms of fungi found all year round both indoors and outdoors. Outdoors, molds live in the soil, on plants, and on dead or decaying matter. Mold growth is encouraged by warm and humid conditions, although it can grow during cold weather. There are thousands of species of mold and they can be any color. Many times, mold can be detected by a musty odor. Another common term for mold is mildew. Most fungi, including molds, produce microscopic cells called “spores” that spread easily through the air. Live spores act like seeds, forming new mold growths (colonies) with the right conditions. All of us are exposed to fungal spores daily in the air we breathe.

So, how does mold get into a house? Most, if not all, of the mold found indoors comes from outdoor sources. It needs moisture to grow and becomes a problem only where there is water damage, high humidity, or dampness. Common sources of indoor moisture that cause mold problems include flooding, roof and plumbing leaks, damp basements or crawl spaces, or any moisture condensation on cold surfaces. Bathroom showers and steam from cooking may also create problems if not well ventilated. This is why a thorough home inspection is important when buying a home. You want to have an expert identify any water intrusion that could lead to future mold issues.

Now that you know what mold is and where it comes from, let's examine how you can prevent it. Controlling excess moisture is the key to preventing and stopping indoor mold growth. Keeping susceptible areas in the home clean and dry is very important. Ventilate or use exhaust fans (vented to the outdoors) to remove moisture where it accumulates, particularly in bathrooms, kitchens, and laundry areas. Clothes dryers should be vented to the outside. Repair water leaks promptly, and either dry out and clean or replace water-damaged materials. Materials that stay wet for more than 48 hours are likely to produce mold growth. Lowering humidity indoors by using air conditioners & dehumidifiers also helps prevent condensation problems in warm weather. Proper exterior wall insulation helps prevent condensation from forming inside during cold weather.

Are you a home seller who is trying to figure out what features buyers are looking for in a home? According to the “Third Annual Home Design Drivers Survey” conducted by Avid Ratings, there are numerous design elements that could make the difference between a home being sold right away and one that sits and depreciates. Below a list of design features that Avid organized into categories based on the responses received.

To conduct this year's survey, Avid received in-depth feedback (75 questions per survey) from more than 900 recent new homebuyers. These homebuyers were asked how they would rate the importance of various design features, if they were in the market for a home again. All respondents had moved into their new homes within 3 years and represent potential buyers across the U.S. Below are the top 5 items in each category as rated by this year's survey respondents rated.

Must-Have

• Oversized shower with seating
• Energy-efficient appliances
• Sizable kitchen
• Ceiling fans/blinds
• Home office/study

Foreclosure notices in metro Atlanta jumped to a record high this month. There were 12,568 foreclosure notices in the 13-county metro area for March. This is 22 percent more than February’s 10,318 published notices and 24 percent more than the 10,138 advertised a year ago, according to Alpharetta-based Equity Depot. Equity Depot tracks notices published each month for public auctions scheduled for the following month. March’s numbers count the homes set for auction in April. Not all the listed homes will actually be foreclosed upon, as some homeowners catch up on payments or work out deals with lenders. The largest number of foreclosures published prior to this month was 12,318 in September of 2009.

There are mixed opinions on why the increase occured. Some think that a lot of financial institutions that held off on foreclosures during the holiday season last year are now moving forward again. Others think that the jump is a sign that the high unemployment is taking a toll, that basically people are losing jobs and can't make payments. To provide a frame of reference, Georgia has lost 375,000 jobs in two years – more than 8 percent of all positions. Metro Atlanta's jobless rate in January climbed to 10.8 percent – also a record in the four decades in which consistent data has been kept. Nearly a half-million Georgians are officially out of work, not counting 99,000 people who have dropped out of the workforce or left the state, according to government figures.

What this means for the real estate market is that we are about to see another increase in supply of foreclosure listings. Banks take about 4-6 weeks to list a property after the foreclosure auction occurs, so we should expect to see this surge begin by mid April. This is great timing for buyers that want to take advantage of the current home buyer tax credits. You need to be under contract by the end of April and close by the end of May to receive up to a $8,000 credit for first time buyers and up to a $6,500 credit for repeat buyers.

If you think you are facing foreclosure, a short sale might be a better option for you. Contact me today to discuss your options. If you would like to take advantage of purchasing a home during this buyers market, contact me today for a buyer consultation or begin your search for homes on my website.

In the last blog, the short sale process and its related challenges were explained. The federal Foreclosure Alternative Program is scheduled to go into effect on April 5, 2010 and promises to streamline the process for everyone involved in a short sale transaction. There are several key aspects to this program which will be outlined here.

Home Owner Eligibility: Home owners will be eligible for the Foreclosure Alternative Program if they meet the minimum eligibility criteria for a Home Affordable Modification but did not qualify for a modification or were unable to sustain payments under a trial period plan or a modification. Prior to deciding on foreclosure, participating lenders must evaluate each eligible borrower to determine if a short sale is appropriate. Considerations include property condition and value, average marketing time in the community where the property is located, the condition of the title, and a determination that the net sales proceeds are expected to exceed what the lender would make through foreclosure Incentive Payments outlined below.

• Lenders may receive incentive compensation of up to $1,000 for successful completion of a short sale or DIL.

• Borrowers may receive incentive compensation of up to $1,500 to assist with relocation expenses.

• Treasury will also share the cost of paying junior lien holders to release their claims, matching $1 for every $2 paid by the investors, up to a total contribution of $1,000 by Treasury.

Standardized Documentation: The program will publish streamlined and standardized documentation, including a Short Sale Agreement and an Offer Acceptance Letter. These documents will outline specific marketing terms, describe the rights and responsibilities of all parties and establish clear timeframes for performance. Creating one standard set of documents that the industry can use is expected to minimize the complexity of these transactions and significantly increase successful close of short sales.