Welcome!




Expand Your Education with These Courses from
Business Creation – Prospecting: Skills for Sales Success: Part Three.
Territory Management: Skills for Sales Success: Part Eight.
A Consumer Advocate Approach to Real Estate: Course 1.
Bundle 2: CIPS Elective Courses (US Version).
Customer Relationship Building: Skills for Sales Success: Part Seven.

Foreclosure Fortune-telling – Adjust for Your Success

Have a comment on this article? Share on Facebook!

Home-selling Strategies by Chris Kaucnik

RISMEDIA, October 1, 2009—It’s clear there are many more foreclosures in the real estate market’s future and we don’t need a fortune-teller to enlighten us on that score. What we do need, however, is to know the level of foreclosures being forecast over the next few years, as this will likely be a crucial component for strategic business and life planning activities. 

Fortunately, rather than having to engage a fortune-teller, we can use a report compiled by The Center for Responsible Lending, which projects foreclosures over the next four years and their impact by state. It allows us to take a peek at what will likely occur from 2009 through 2012. The projections show an estimated 2.4 million foreclosures will occur in 2009, with a total of 8.1 million from 2009 to 2012. 

While we’re still experiencing an unacceptable amount of foreclosures in 2009, even for the large U.S. market, the forecast appears to depict the beginning of the descent back to normal levels. These projected foreclosures will likely start the downside of the curve with a higher percentage of the 5.7 million foreclosures left after 2009, taking place in 2010, continuing to de-escalate into 2011, 2012 and so on, leading to a more reasonable level. We could see even lower foreclosure rates as court-supervised modifications rise. 

While it will take several years to return to a more typical annual rate of foreclosure, we appear poised to move in that direction. In 1979 the foreclosure rate was about .25% and rose to 1.25% by 2006, while bobbing up and down a bit in between. As the rate has been on a steady rise, it is difficult to zero in on an accurate, consistent rate. 

How can knowing all of this help you? If you are not handling REOs, then you can plan your business and consult with your clients accordingly for this timeline, knowing there may still be some devaluation of homes in various markets over the next few years. 

If your business is handling REO properties, some planning for a future when there are gradually less and less foreclosures, may make sense for you. Keep watching the numbers and your local market activity and adjust for your success accordingly. 

Chris Kaucnik is marketing director for Home Warranty of America, Inc. 

For more information, visit www.hwahomewarranty.com

Want instant access to great articles like this for your blog or newsletter? Check out our 30-day FREE trial of REsource Licensed Real Estate Content Solutions. Need easy stay-in-touch e-Marketing solutions too? Try Pop-a-Note for 99 cents!
Join RISMedia on Twitter and Facebook to connect with us and share your thoughts on this and other topics.




Copyright© 2014 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

Content on this website is copyrighted and may not be redistributed without express written permission from RISMedia. Access to RISMedia archives and thousands of articles like this, as well as consumer real estate videos, are available through RISMedia's REsource Licensed Content Solutions. Offering the industry’s most comprehensive and affordable content packages. Click here to learn more! http://resource.rismedia.com