I get frustrated with the high inventory of new foreclosure homes in our area. These were spec homes that never found a buyer. I call those homes the less personal side of foreclosures.
FORECLOSURES are such an emotional event. People don't want to lose their dream. Many times life throws a really hard one and it is a struggle to get back on your feet.
My brother in law was married, working as a mortgage broker, he had just bought his first home, and his wife was expecting their first child. All was well in his world. One morning he woke up to find her dead in bed. She was only 30. After the funeral it was discovered that they had hundreds of thousand of dollars of life insurance on him, but only a 5000 policy on her. It didn't even begin to cover the funeral.
He could not work for several month's. He was an emotional wreck. When he was able to come back, he was not the same and could not put on his game face for the job. He ended up switching jobs several times trying to get back in the game. He ended up waiting tables and doing other odd jobs.
With no life insurance, a job loss, and his last vision of his wife was of him unsuccessfully aadministering CPR to her. He could no longer make his payments. He initialy did a refi, but as we know, that often catches up with you, and it did him.
WHen he gave the home back to the lender it was excruciating. All his dreams died in that house. It has been 8 years since my sister died. He is just getting back on his feet. Most 26 year old men don't become widowers.
I tell you all of this to remind you that if you are handling a transaction that involves a foreclosure with an end user. Suspend any opinions you may have about "how they got there". Do your best as their agent to walk through this with them and lead from a servant's point of view. If you can help them see that this is a season in their life, however, as seasons always do, they change and days will get better.
If I can offer any words of wisdom, it would be to first make sure you have lots of life insurance, it could of eased my brother in laws road to healing and number two. PMI is there to help people in case the home they currently have is not worth what the market is conveying.