In reference to this year's outlook on future foreclosure filings and bank-owned properties, Realty Trac Senior Vice President, Rick Sharga, announced "2011 is going to be the peak." Additional information was released inMSNBC's article today that supports Sharga's statement, reminding readers that our nation's efforts to recover from the foreclosure crisis has only just begun.
We are referencing this article today at the risk of coming across as sounding negative and hopeless. Visiting most online news sites entices us to click on the latest doom and gloom foreclosure articles which subsequently fails to provide us with little else to recharge our metaphorical vials of optimism for the future. As you read the MSNBC article, or any other article about the foreclosure crisis, we propose you use the information as motivation to accept the following calls to action:
- If you're not doing so already, get involved with distressed homeowner assistance in your local community. MSNBC reports there are over 5 million homeowners who are 2 months behind on their mortgage payments. The majority of these homeowners will lose their home this year because they don't know where to turn for help.
- Know what's happening in your area. It's not enough to know what's going on nationally. Where does your community fall into the mix? There are so many trusted resources available for agents to obtain relevant, community-specific statistics at their fingertips. We will list a few of those resources in this post.
Reading MSNBC's article today tells us at SSAA that we, as real estate agents, have some unique and profitable opportunities in front of us that will ultimately change lives. For example, Realty Trac expects lenders to repossess an estimated 1.2 million homes in 2011. If 1.2 million homes are repossessed, how many others will be sold as a short sale, be lost to foreclosure, or purchased by a 3rd party at an auction? The numbers are incalculable therefore fueling our office's motivation to reach out to as many homeowners as we can in our local community.
What MSNBC calls "the bleakest year in the foreclosure crisis" will be squeezed into lemonade in 2011 at SSAA. We're getting involved on a national level to inform homeowners everywhere that, even though times are tough, there are professionals out there that will provide them with real assistance. Unfortunately, even though there are currently millions of homeowners who need professional help, it is highly unlikely they will spontaneously call our office for assistance without any information.
Getting involved means developing strategies to find homeowners who need help, educating them regarding their options, and empowering them to make their own decisions. Here's how we do it:
- We identify individuals who are currently in default.
- We strategically market to them using direct mail campaigns, door-knocking, and outbound calls.
- We educate them regarding their current financial situation.
- We empower them to make a decision.
- We help them follow through with their decision.
We identify individuals using a pre-notice of default (pre-nod) heat map offered by Short Sale Association of America (SSAA). It's the fastest and most efficient way to purchase true pre-nod leads live-streamed from the credit bureaus. We choose a list of zip codes in our area, submit the order within minutes, and even use the map as an educational resource to keep up with the most current local default statistics.
Our lists only show the names of individuals whose default has not yet been publicly recorded, so we're the first ones to contact them. From a marketing standpoint, we oftentimes have a captive audience reading our letters since most bankruptcy attorneys and deal-seekers aren't aware the homeowner is even in default. From a community service standpoint, we are ensuring that homeowners in our area are getting the right information and the best professional service available.
We get to educate them first and early enough in the process when they still have multiple foreclosure alternatives to choose from. As a result, we're listing a ton of short sales and we have plenty of time to market them to buyers properly and get them closed before the foreclosure sale date arrives.
It's difficult to remain optimistic when we're constantly being reminded that the worst is yet to come. We can overcome disappointment by seeking solutions outside of the box. Homeowners in your area need to know that you're actively working to provide them with realistic solutions and written plans that will benefit them and their unique concerns.
As you develop your own strategies to get more involved and stay current with your distressed property education, consider the options discussed in this post as innovative tools you can use to remain optimistic in 2011. If you'd like to try out the pre-nod interactive heat map, click PRE-NOD for more information. It's only been available to the public for a very short time and there's no other platform like it anywhere else.
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