First Guaranty Mortgage launches plan to move REO quicker
First Guaranty Mortgage Corp., APD Solutions and Home Depot ($76.86 0.11%) unveiled a program aimed at getting potential homebuyers to use rehabilitation loans to increase the value and appeal of bank-owned properties.
The companies plan to work with REO asset managers and real estate agents to coordinate the marketing of these homes, and manage the administrative requirements associated with a rehab loan.
The companies want their "Rebuild the Dream" initiative to accelerate the resale of REOs and help rebuild the housing stock by reducing time to sell these properties while boosting prices on homes that otherwise might be marketed in a state of disrepair.
"This initiative will work to smooth the transaction for Realtors who otherwise would have avoided the rehabilitation loan," according to Andrew Peters, senior vice president at First Guaranty, which is a national, full-service mortgage lender. "We believe that many have avoided such products because of a misperception that the 203 (k) loan is time-consuming and difficult to close."
James Cromartie, business development director for APD Solutions, said very few REO properties make it through the foreclosure and repossession process in good condition, making them "far less appealing to potential buyers." APD Solutions, which is a national neighborhood revitalization firm, will partner with Home Depot to coordinate delivery of the renovation services.
Write to Jason Philyaw.
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