Home Agents Earn by Helping Homeowners in Pre-Foreclosure
Home agents can increase their income by helping troubled homeowners in the pre-foreclosure stage. According to real estate associations, the pre-foreclosure market is another big market for real estate agents because there are more than 1 million mortgages in various stages of pre-foreclosure.
The pre-foreclosure market also provides opportunities for real estate agents to help other people and at the same time earn commissions because majority of distressed homeowners do not know that they have other options when they receive their notices of default.
Agents can also help lenders reduce their losses from foreclosure and make this loss reduction benefit a leverage when they negotiate with lenders concerning short sales.
Mortgage firm Freddie Mac has published studies showing that most delinquent mortgage borrowers do not know they can sell their house in short-sale transactions so they can protect their credit records and be able to buy a house again in the near future.
Home agents however need to prepare and learn from the experiences of more experienced real estate agents when jumping into the pre-foreclosure market. Homeowners in pre-foreclosure are under enormous anxiety, frustration, anger and stress so agents need to understand these emotions. They just have to adjust as homeowners predictably go through denial, anger, despair and acceptance.
Before negotiating with homeowners in pre-foreclosure, agents need to become experts first about the foreclosure process, foreclosure laws, recent changes in foreclosures and time frames in their states. They should be able to explain the process clearly to the homeowner.
They should also know pricing trends and current market trends in their areas so they can time their sale. They should be able to sell the house within the time frame allowed by the judicial foreclosure process. They should also study the federal loan modification programs, including any foreclosure prevention program in their states.
Based on real estate sales data, the agents who are making the short-sale transactions are the ones who are making efforts to contact homeowners directly and patiently explaining all options to them. Some distressed homeowners do not read their mail or answer the phone, but they respond if they see a smiling and friendly face on their doorstep.
Finally, home agents do not have to focus on REOs where there is fierce competition. They can get listings from the pre-foreclosure market, help troubled homeowners and grow their real estate business at the same time.
Related Posts:
Home Brokers in California: Fee Contracts No Longer Valid by Cassiano Travareli on October 30th, 2009
Houses Broker Now Requires Financial Disclosure Upfront by Cassiano Travareli on October 15th, 2009
Realtor Selling Homes and Pre-Foreclosures by Cassiano Travareli on October 2nd, 2009
Home Brokers Team Up and Stand Out from the Crowd by Cassiano Travareli on November 25th, 2009
Online Brokers Can Save You Thousands in Costs by Cassiano Travareli on September 4th, 2009
