Earlier this month, an insightful discussion occurred within the comments of a blog post entitled "A Sure Fire Method to Rapidly Increase Your Income."  The post opened with this statement about the reality which many in the real estate community are facing as we enter into the holiday season...

• "As the holiday season approaches, many in the real estate community have two head bangers to deal with.  The prospect of having to buy gifts and other holiday fare at a time when there's traditionally a slow down in home sales AND the spectre of looming tax bills around the corner just after the holiday season winds down.  This can definitely put a damper on enjoying the festivities."

Through this series we have been exploring ways in which real estate professionals can Create Multiple Streams of Income by Specializing. Our last post on this series focused on Community Blogging aka Niche Marketing. We discussed a number of ways in which the marketing services real estate agents provide can be offered to a wider market including business owners and Sellers Who Are Not Currently Represented...aka FSBO's. If you have not read that post or the others in the series, it may be helpful to pause and read them at this time.

#1 Thriving Successfully In Real Estate Through the Holidays...and Beyond!

#2 Marketing To Create Multiple Streams of Income Through the Holidays & Beyond!

#3 Creating Multiple Streams of Income by Dominating Your Local Niche!

Our focus for today's post is on Short Sale & Foreclosure Specialization.  I once heard a statistic at a foreclosure seminar that was mind boggling.  According to this expert, 52% of homeowners who find themselves in the unfortunate situation of having to let go of their home through a foreclosure NEVER talk with an ANYONE prior to the sherrif's sale.  Wow!  Now, even if this number was only 30% that is still startling.

That means a large number of homeowners who find themselves in this situation are either too embarrassed to ask for help and may not understand what their options are.  Many of these homeowners may actually have equity in their homes which they have worked for decades for.  This is truly a case in which "what you don't know can truly hurt you!

Over the years, I've met individuals who were totally unaware of their rights.  Even with the media blitz about foreclosures and short sales in the real estate market, many homeowners don't have any clue about the laws that govern the process of foreclosure in their state.  For instance, in Michigan, the redemption period is 6 months if you are on less than 3 acres, but one year if you have 3 acres or more of land.  BUT...if you abandon your property, then your Redemption period shortens to a mere 30 days, allowing the bank to move in and potentially grab, in some cases, years of hard earned equity.  That's a high price to pay for embarrassment.

For real estate agents, this represent a real opportunity to Add Value to the lives of those we serve by educating consumers about their rights.  Sometimes, selling a home is not the right option.  I work with mortgage specialists whom I can refer a client to for a complete analysis to determine if there are other avenues that might be allow them to keep their home.  I also coach clients about how to approach banks to work out possible solutions without having to sell their homes.  Many homeowners are not aware of the tips that a real estate agent can provide and are very grateful.

There's no better feeling than seeing a family home saved.  These "non sales" have been the source of many referrals!  However, if the best solution is to pursue trying to recoup the equity or cut the extensive losses through the negotiation of a short sale, real estate agents can guide a client through the complex labyrinth of entanglements required in dealing with most banks. 

This is by no means an easy job.  It often involves dealing with individuals who don't answer their phones, who are rude, tired and seemingly unconcerned about the losses incurred by their employers and their soon to be former clients.  However, persistence is key in winning the war...not the battle. (Warning...You may feel as though you loose many battles.)

Over the past few years, we have successfully negotiated many transactions which enabled our clients to be forgiven significant amounts of debt or to have payments significantly reduced.  This is an area in which many real estate agents are not comfortable with because they lack the training or understanding of the financial implications of mortgage financing. There are many classes available now which offer training to help real estate understand what needs to be done in this type of negotiation.  The Grand Rapids Board of Realtors recently offered Continuing Education in this area.  In addition, there are many excellent blog posts on the Activerain network.

The key is to accurately assess the specific situation prior to entering into an agreement for service.  Knowing what to ask and where to access critical information can make the difference between success and failure. Here are some suggestions which might help to determine if taking a listing in a short sale or foreclosure is appropriate.  Click here to continue reading...

Copyright 2007 Audu Real Estate  All Rights Reserved

 Click Here to Read More about Grand Rapids, Michigan