Georgia Program to Reduce Bank Owned Homes Sale

by Peter Vernon on States

Georgia has established a program that aims to reduce the number of bank owned homes sale in the state. The Georgia Dream Purchase Program offers a second mortgage of up to $14,000 to any qualified buyer of foreclosed homes in some counties in the state.

This loan program requires homebuyers to acquire repossessed homes with the property titles transferred to any eligible agency or mortgage lien holder. This means that homebuyers who avail of the loan program must make the purchase from banks, government entities or eligible nonprofits.

However, this loan program does not require potential buyer to be first-time homebuyers, giving opportunity to rental property owners to qualify for the Neighborhood Stabilization Program (NSP) which aims to reduce the number of bank owned homes sale.

Georgia’s foreclosure filings for the first quarter of this year increased by 11 percent to 28,608 compared with the last quarter the previous year and less than 50 percent higher than the numbers in the first three months in 2008.

In March, Georgia reported foreclosure filings in 13,366, a 31 percent jump from February and 21 percent higher from March 2008 total. Data showed that one out of 138 homeowners received a filing of foreclosure in the first quarter of this year, making Georgia the seventh highest state in terms of foreclosure rates.

Because of the these ever-increasing foreclosure rates, the state’s NSP program has a specific goal which is to boost bank owned homes sale to pave the way for the recovery of the housing market in the state.

Meanwhile, the loan program also requires buyers to acquire bank owned properties in a county severely affected by the foreclosure crisis. The list of counties in the state identified to be areas of greatest need was compiled based on the number of foreclosure properties and includes counties in metro Atlanta.

Additionally, a homebuyer should have a household income of not more 120 percent of the median income in the area to be eligible for the program. For example, a family of four members who want to qualify for the NSP program needs to have a household income of not more than $85, 450.

The Georgia NSP second mortgage program is designed not to exceed $14,000 or up to 10 percent of the purchase price of bank owned homes sale.