Forelosure: Are You a Part of the Problem or Part of the Solution?

By
Real Estate Agent with Your Castle Real Estate, Inc!

This is a rather serious question. It is the reason that there are real estate licensing rules, and mortgage licensing. It boils down to ethics.

Here are the questions:

  1. How do you determine the viability of a Buyer prospect?
  2. How do you assess the ways you can best serve your Seller?
  3. What do you do to establish a Buyer's qualifications?
  4. How do you break the truth to your saellers when setting a listing price, when their home is worth less than they owe?

The foreclosure problem is real, and it will be with allof us, regrdless of market for a while. I am interested in finding out how you are dealing with the situation. Are you doing anything to help troubled homebuyers keep their homes? If so, what steps are you taking?

Have you formed any strategic partnerships with service providers in your area who counsel homebuyers or homeowners on their options?

What counseling do you offer your Buyers especially to keep them from becomng a statistic?

Are you helping them better understand their mortgages, and do you offer them any advice about how to get the best mortgage to meet their future needs?

Why am i so inquisitive all of a sudden? I am not just looking for a smoking gun.

Here is the meat of this post:

                                                                                

I see the problem as two things - pandemic in its effect on the economy and homeowners, and endemic to our industry.  We perpetuate the same thing we all decry. Why make suh an insulting statement? It isn't from a need to be insulting, or even that I am actually attempting to insult anyone. It's just that all are equally tempted to consider their commission above all else. i am no different, especially when the money gets tight. I started a review of last year's performance and what I had done. I take a six month evaluation of what i do; a look in the mirror, if you will. I closed some deals and got some loans done to be sure.

                

Then I looked at how my practice changed last year. because of the high volume of loss mitigation accoutns I served (I did 950 loan workouts last year for 1200+ homeowners, out of 1540 homes I visited). The volume was staggeringly high. I racked up 30,000 local miles last year in real estate, driving 10 counties, to meet with Buyers and Sellers, and those who were losing homes to foreclosure. I referred 78 people to agents in areas too remote for me to personally serve, and did hundreds on first and second BPOs.  Prices of these homes ranged from $65,000 to near $7MM. the work demographoc ranged from dock laborer to heart surgeon.

 - cartoonstock

So, you now have a broad and high level view of what I faced in Colroado last year. Digging deeper, I looked to see what happened to the people i worked with. What was there that would keep my Buyers and Sellers alike from having future trouble? What about those for whom I had labored to fix loans for? What would they be like in the next two years?

bugbash

I called a few of them to find out, so I could tell how consistent i was, and to see what the effect f things I left with them had been. The response was mostly positive. I compared the results of my calls to those who called me for further counsel. These people by and large were amazed that simple tools could help them monitor debt, and gain control of the financial households.. All I had left them with was a structured debt repayment worksheet, and a financial statement. However, I also provide intructions on how to load and shoot the gun, as it were. The tools does no good without an explanation of its proper use and funciton. People were telling me they were on there way to debt freedom. One, in particulaar, cut out all unnecessary spending, locked up his credit ards, and paid all of his debt off in 7 months, although we were projected at the time to pay everything off at his present standard in 18 months. He told me nce he saw how he had been digging a hole, he wanted to put the "dirt" back in it quickly. He uses my debt management tool for his manageres to report on their uses of funds in their departments, and said he has cut waste in the company as a result. He says his managers are happy,  because the tool is easy to use, and they get a better picture of how thier uses of funds is affecting the company.

                                                      -JYI

So I collected some data, and asked  myself some important questions? Now What? With this informaiton, I have to plan the last half of this year. I have to decide how I am going to perform better, and quicker, more effectively, and more efficiently. I have to determine how I am going to keep in contact with clients, at what frequency, and what services I will offer to set a great pace for this year. In the end it isn't what I think that matters, but more than ever what I do that counts.

I decided that it is best for me to be a part of solving foreclosure problems. To do this I will have to take a strong stand against doing whatever a Buyer or Seller wants, and really tune into their needs more. I have to be "out there" advocating homeownership and the proper uses of equity. I have to campaign not for a political candidate as much as for their constituencies. In short, I am there with the sole prupose of helping people maintain financial fitness in homeownership. I am my clients' personal trainer, keeping their financial households fit.

The commercials from feedthepig.org are out there, but an annoying image of a man wearing a pig head in an office doesn't cut it for me. I am on a grassroots mission, doorknocking at $4 a gallong to make sure hojmeowners are aware of the things affecting their fiancial health.

What are you doing?

 

 - graphics courtesy of Google(tm) images

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