Foreclosure Specialists Thrive in Niche

Commentary by Margaret Kelly

RISMEDIA, July 19, 2007—It’s not exactly breaking news that foreclosures are on the rise. By the first quarter of 2006, for example, 323,102 properties nationwide had entered some state of foreclosure according to the RealtyTrac U.S. Foreclosure Market Report. This marks a 72% year-over-year increase from the first quarter of 2005.

Overextended homeowners in buyers’ markets combined with stagnant employment opportunities in some communities increase the odds that individuals will find themselves in desperate mortgage situations. Despite the trauma foreclosures impose on homeowners and communities, real estate professionals—particularly foreclosure specialists—can make a difference.

When homeowners fall victim to economic circumstances and lose their homes, the properties can sit vacant and incorrectly priced for months or even years as lenders try to unload them, leading to a decline in property values at best and a rise in crime at worst.

If enough homes in any particular area enter foreclosure, the fabric of the neighborhood can change as homeowners move—sometimes flipping the properties to investors who flip them again, perhaps without anyone ever moving in. The problem can affect any neighborhood of any economic class in any state.

As a real estate agent, you can help turn the tide against declining neighborhoods by finding stable buyers and helping them locate reliable contractors, landscapers or repair professionals to restore these properties if needed. Although, many foreclosed homes in today’s market are in good condition.

You’ll want to be aware of the financing options available to your buyer and the often-strict deadlines to close the transaction. The back-and-forth nature of offers generally doesn’t apply with foreclosures. You usually have one shot—win or lose.

Learning to handle foreclosures with grace and expertise comes with time and experience. The process can be frenzied, but it also can be personally and financially rewarding. If working with foreclosed properties appeals to you, now’s the time to use your skills to strengthen your community.

To learn more about foreclosures, visit ushud.com or realtytrac.com, or investigate the ABR designation elective course “Foreclosure Opportunities for Buyers/Clients.” RE

Margaret Kelly, CRB, is chief executive officer of RE/MAX International. She joined RE/MAX as a financial analyst in 1987.

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