The Home Mortgage Mess What a Great Opportunity
April 14, 2008 - Courtesy of RealQuest.com I recently took a look at the amount of houses that were bank owned, in auction or pre-foreclosure across the country. There were hundreds of thousands. Even in my neighborhood, just down the street there were some. That was just too close to home. It certainly put the subprime collapse in perspective. Every one of those houses involves a lender that is facing taking back yet another house, which it doesn’t want. What a mess.
Yet in the middle of this mess is a great opportunity for the enterprising real estate agent. Some agents are already successfully working with lenders that are in trouble with houses that are in or heading into foreclosure. They are the ones that have become involved in processing and negotiating “Short Sales.”
What is a “Short Sale” you might ask. Well it’s when the lender of record agrees to discount their payoff to accommodate a sale of a house when: 1) The borrower has experienced hardship and is unable to repay the mortgage, 2) The value is proven to be less than the amount needed to pay off all loans, encumbrances and real estate selling costs and 3) The loan is delinquent or in default. When you first think about a Short Sale the thought occurs – why would a lender take that kind of loss? But if you reflect on their primary business and source of revenue it makes sense. Foreclosure is a painful process for the homeowner and a costly event for the lender. When the foreclosure is final their problem has just begun. This is your open door.
In a new online course just released by RealtyU, agents can now for the first time become a Certified Short-Sale Professional (CSP). The course was created based upon the experience and day-to-day operational knowledge of Short Sale specialist and pre-foreclosure expert Jacob Swodeck. The 8 hour course details how to open that door by understanding exactly what the lender requires and how to present it to ensure success for both you and your sellers.
In this course Swodeck points out to agents that lenders have a lot to gain from a Short Sale including:
Not having another bad debt on their books … they are generally required not to have more than 3% bad loans at any one time.
Avoiding the costly foreclosure process which includes legal and procedural fees.
Avoiding having to evict the occupants.
Not having the expense of rehabbing the property.
Not having to go through a lengthy sales process and most likely getting no more the Short Sale would have generated.
Not having to pay a commission to their R.E.O broker.
Short Sales are the opportunity of 2008 and agents that without having participated will regret it.
Get the ball rolling and arm yourself with the knowledge, tools and strategies to guide you smoothly through the process. The Certified Short-Sale Professional (CSP) course will do that for you anytime and anywhere – all according to your schedule.