LOTUS REALTY GROUP
Distressed property market
In any given market there are always a certain percentage of homeowners who are in distress. According to most investor publications and common knowledge, the percentage is somewhere around 1 to 3% in a healthy market.
Recent changes in the market have pushed that number many times higher. In some areas as many as 1 out of 10 homes are at some stage of the foreclosure process. Add to this number, those not in foreclosure but may be forced to relocate, involved in a divorce, have had a death in the family, aware they owe more than the home is worth, and many other reasons for distress, and the percentage gets higher and higher. In the past, the average agent did not handle pre-foreclosures. When a situation did arise, they relied on advice from others and had trouble with the process. Often, they either said to their client “I can’t help you, or passed them off to someone that could. Not much has changed. Short sales are still not Realtors favorite past time. Here are a few reasons why:
a) They are complicated
b) They take longer to close than a regular transaction
c) Time consuming
d) You could go through the whole process and not get an approval.
e) The commission is often lower than a traditional sale.
f) Agent is not knowledgeable in this area of the market
The reality is the current percentage of pre-foreclosures, bank owned properties and shorts sales are rapidly growing and are continuing to head that way. Given the current state of the real estate market, it is imperative that real estate professionals are educated enough to at best point a home owner facing foreclosure in the right direction.
Who has shown up to what they thought was going to be a traditional listing appointment and learned that the homeowner owes more than their property was worth?
I recently had a meeting with a realtor who has been in the business for 6 months He plans to target a specific area he believes has a certain percentage of equity sales. The concern I had with that was I felt this professional could potentially run into this very issue.
Who has gotten a call from a previous client who says: I want to sell my home but I am 3 months behind on my mortgage, what do I do?
How many people have walked away from a short sale opportunity or passed it along as a referral due to lack of knowledge, or because you didn’t want to deal with it?
My objective with you is to:
a) Provide you with the know ledge, vocabulary and procedures necessary to allow you to help homeowners going through one of the most severe financial stresses of their life.
b) Help you become an advocate for families that need a professional individual who can help them with the issue they are facing.
c) Help you Offer your client an alternative to walking away from a distressed situation.
We are here to help you qualify, close your transactions, and expand your business in the short sale market, setting up your revenues for the future by building strong client relationships.
LOTUS REALTY GROUP
PROFESSIONAL SHORT SALE NEGOTIATORS
At Lotus Realty GROUP, helping people ethically succeed is at the forefront of who we are.....