Anyone who’s been a realtor for a few years has witnessed some fundamental changes to the way we do business. In a lot of ways, we are still working under the shadow of the Global Financial Crisis, which had major implications for the housing market. In 2006 housing prices peaked and then started declining until they hit their lowest in 2012. Economists generally concur that it was the bursting of the United States housing bubble that led directly to the 2007- 2009 recession.
Many believe that the lending practices of large financial institutions caused the bubble. The fallout when bubbles burst was a big increase in mortgage delinquencies and foreclosures. This affected the economy more broadly, but has been of particular importance for working real estate agents.
When a homeowner defaults on their loan, the bank allows for a grace period between the serving of an eviction notice and the eventual sale of the property at a foreclosure auction. This grace period is given so that the owner has the opportunity to do whatever it is they need to do in order to get them out of trouble, including selling the property.
During this pre-foreclosure period a person’s best option is usually to sell, although they may not always realize it immediately. When you as a realtor approach someone in this position with an offer to represent them in the sale of their house, there is one main point you should emphasize: If the seller can sell the property before it goes to public auction, the seller will have minimized the damage to their credit rating and equity, making it a little bit less difficult to move forward with their lives.
As another bubble begins to form in the property sector, now is a good time to remember the advantages of pre-foreclosure listings: lots of investors in the market, lots of highly motivated sellers, and a ready list of where to find them with prospecting tools like REDX.
So don’t wait—sign up for REDX today!