Changes at HUD's Good Neighbor Next Door (GNND)

Change is afoot at the GNND website. It seems HUD has dropped the contracted website managers who used to maintain listings for them. There used to be a complicated system in which there were multiple websites each serving a different region. Now, there is one website for the whole US. It has been re-branded the HUD Homestore. The website is great it is sortable by category, including price and there are drop down menus where one can select GNND or any other type of sale. The website is fully searchable by county, price range, and number of bedrooms.

http://hudhomestore.com/HudHome/Index.aspx

The Mortgage Morass

In the midst of the high flying housing bubble, mortgage companies sold at such a volume that many didn't or couldn't keep up with all the paperwork. What that means for the nation's housing market now is that there are many houses that should be foreclosed but can't because no one can prove that there's a mortgage. Or worse, companies are trying to foreclose on houses on which there is no mortgage.

What this means long term is that the bottom of the housing market still may be ahead. If banks can't foreclose and move their inventory then housing prices will stay low as these houses trickle onto the market over the next many years. Read more about it here in Paul Krugman's column from the New York Times.

What do low mortgage rates mean for teachers?

The Fed recently announced that borrowing rates will remain at record low levels. What does this mean for teachers? It that everyone will continue to get great rates on their mortgages, but that many of the mortgage deals for teachers will be irrelevant or discontinued.

Some real estate deals are even better with low rates. For example, deals that offer interest free loans are still worth the trouble. Interest free always beats low interest. The Good Neighbor Next Door program is now an incredible deal. Teacher who buy now, not only buy a house for 50% off, they also get a good rate on their mortgage.

Search the deals above or browse the deals within to find out more.

Good Neighbor Next Door Sees a Resurgence

I posted a while ago that I was worried that the GNND program from HUD that gives teachers, firefighters, and police officers the opportunity to buy homes at a 50% discount was drying up. At that time, while the market was flooded with foreclosures, I saw only 3 come to market in 8 months in the Twin Cities market. Recently, however, I have seen a resurgence. There have been nearly a dozen in the last two months. Perhaps HUD was waiting for the market to bottom out before putting more GNND houses out there.

As Homebuyer's Tax Credit Ends, Mortgage Help for Teachers Becomes More Important

The new homebuyer's tax credit will end soon. It doesn't look like Congress has the wherewithal to renew it a second time. While this means that people will be missing out on the $8,000 tax credit, it means that home prices might dip again on the other side of April as there is a lull in buying following the rush of last minute buyers.

Once the tax credit disappears, it will become easier and more important to take advantage of deals listed on this site that are especially geared toward teachers.

First-time Home Buyer Drying Up

The $8,000 first-time home buyer credit is going to end soon, but many of the real estate deals for teachers will continue. While we won't be able to take advantage of this credit, it might free up houses for teachers looking to utilize special programs like the Good Neighbor Next Door program. Also, expect prices to to drop after the credit goes away.

Good Neighbor Next Door dying out?

I've noticed a decline in this real estate deal in which teachers (and police officers and firefighters) get a house for 50% of the appraised value. Other blogs have mentioned similar declines in other markets. Is it possible that HUD is quietly letting this program die out? It is a horrible mistake.