Huge Demand for Real Estate Professionals Trained in Distressed Property Transactions
October 25, 2007 (PRLEAP.COM) Business NewsPortland, OR – October 25, 2007 - Amidst a growing mortgage crisis and double the amount of foreclosures since September 2006, real estate brokers and agents trained in transacting distressed property are in high-demand. While foreclosures are prevalent in communities nationwide, the majority are in two states: 1 out of every 3 foreclosures are in California and Florida, according to Realtytrac.com
This month, October 2007, $50 billion dollars in Adjustable Rate Mortgages will reset – causing a 35% increase for those subprime ARMs taken in 2004 & 2005, according to RealEstatePress.org
“In the next five years, 1.4 million Americans will see their mortgage payments more than double. To date, over 500,000 homeowners are 3-months behind on their payments,” according to Money Magazine, August 2007.
What may seem like doom and gloom is really an opportunity for real estate broker/agents who specialize in distressed property niche markets, said Margot Murphy, a licensed real estate broker and national trainer of broker/agents in business-building systems focused on these specialized transactions.
“All over the nation, we are going to continue to see a huge demand for licensed brokers and agents who can really sink their teeth into the distressed property market. This means performing Broker Price Opinions (understanding how to value property), Short Sale Transactions (for the equity deficient homeowner), and post-foreclosure REO (bank-owned real property management and marketing).
The National Association of Realtors also reports home sales are down 2% and the number of homes for sale is up 5% with a 9.6 month supply - the biggest supply of homes by that measure since October 1991.
Mix this with a recent mortgage credit crunch and many industry experts conclude that home prices are sure to continue to decline in many areas of the country. Underwriting guidelines have changed dramatically. In the recent past, if you could fog up a mirror, you could get a loan. Those types of loans may no longer available these days. Many consumers are maxed out, they’ve taken their equity, they’re unable to repay, values continue to depreciate and many American homeowners are losing their foothold.
Plus, there are fewer buyers. There’s an increase in listing inventory, an increase in time on the market for sale, an increase in mortgage defaults, which all leads to increased pricing pressure. So with more inventory (supply) and less demand, you’ve got a recipe for a negative affect on home prices. This whole scenario is what we’re up against over the next few years.
Homeowners can avoid foreclosure by requesting a formal loan modification agreement with their lender, but these programs are difficult to qualify for. Homeowners who currently can’t afford their mortgage payments certainly won’t be able to qualify for a modified loan program that is sure to increase those payments for the short term. Another option homeowners may have is to work with a highly qualified real estate professional who can negotiate with their lender on their behalf in an effort to settle the loan in full, but at a discounted balance. It’s called a short sale and broker/agents trained in this sales technique have hugely successful outcomes.
Murphy’s website: www.RealEstateProGuides.com has seen a surge of activity in the last few months, so she converted all of her distressed property training programs into on-demand tutorials that play immediately once an order is approved, right on her site.
“I’m seeing broker/agents all across the nation getting more savvy and experienced in transacting equity deficient home sales. They are asking me more detailed questions to help them create the best possible outcome for all parties involved,” she said.
“Now more than ever, real estate professionals have the opportunity to help troubled homeowners. We need to be flexible in order to succeed in different niche markets as the housing industry changes. My training programs offer turn-key systems with online tutorials, business kits, marketing kits, and other calculators that make your job thorough, efficient and profitable…3,500 broker/agent customers to date are living proof!”