As a real estate agent, I got into this business because of a deep desire to help people in one of the most important financial decisions of their lives. Whether it's a first time homebuyer having the thrill and fright of their first home buying decision or a grizzled old timer who knows exactly what he wants, when you help them smoothly negotiate the process and see the appreciation on their face, it's worth it all.
Now, a lot of these same people are in some real trouble. I don't want to lay blame anywhere, but for whatever reason, the people whom we serve can't afford to pay for their home anymore. When that happens, a long, difficult, heart-wrenching process begins:
- The struggle to make ends meet degenerates to being unable to make ends meet.
- The house will go up on the market, but they owe so much on their mortgage that they have to price it above market value to cover closing costs.
- After discussions with their lender, they get approval for a short sale, and the desperate attempt to sale the house in 90 days or less begins.
- Finally, the forclosure process starts with it's endless quantity of BPO and then the property becomes bank owned or in the lingo REO (Real Estate Owned).
Is this a few people or is this a growing trend?
Here's the current information I have:
2006 REO Listings: 600,000
2007 REO Listings: Over 1,000,000
2008 Estimated REO Listings: About 2,000,000
The reality is that some of our past clients need our help now. If we can help them sell their homes and downsize before the hole is dug to deep, then great. However, very few want to give up their dream home until it's too late.
Otherwise, I hope your brushing up on short sales and REO lisitings :-(.
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