With all the news of foreclosure rates rising and in order to complete requirements for my Accredited Buyer Representative (ABR) designation, I attended a class on Foreclosusre Opportunities for Buyers/Clients.  I've shown foreclosed properties before, but have never been involved in listing them.  Most of them are wrecks that would take considerable money to renovate, and you can sense the anger, frustration, and desperation that drove the families who left them to do what they did. 

One of the things impressed upon us by our instructor was to stay in touch with past clients, every now and then reminding them that almost all of us have financial difficulties from time to time.  However, when those difficulties impact ability to pay house notes, it may be time to sell the house while there is still time to have control over the proceedings and possibly recoup some of the equity.  When in denial too long, foreclosure proceedings begin, and there is no control and no return of equity.

I actually experienced this recently when I received a referral to market a small restaurant.  The owner did not tell me how close she was to losing the business.  I barely got it listed when I learned the bank had notified her of a date for sheriff's sale.  We found a buyer at a much lower sale price then desired, but there was not adequate time to process the loan.  The bank officer refused to remove the property from the sale to allow the loan to process.   Ironically enough, the property did not sell, and the bank wound up entering into their own agreement with the buyer for less than our contract.  By refusing to cooperate with us, they lost even more money!

So to property owners, please call your REALTOR® before the process goes too long.  Get some return for your investment.  Your credit is not so badly damaged.  You can move to a less expensive house or rent for a while until you get on your feet financially.  This too shall pass if you keep your head and deal with it.