Real Estate Agents Embracing the Pre-Foreclosure Market

No real estate agent wants to work hard on a sale only to find that the homeowner's debts wiped out their commission. Professional foreclosure specialists are bridging the gap between consumer and real estate agent needs.

The foreclosure specialist (click here) knows how to negotiate with the bank or lender to accept a lower payoff amount, which leaves enough to pay the real estate commission. This protects the homeowner and the real estate agent so that the business interests of both are well served.

The image of "the bank" as a hard-edged, granite building also fits the way many banks deal with homeowners in foreclosure. They own the game - and the property - so it's no surprise that the bank stacks the deal squarely in their favor.

If the homeowner tries to negotiate alone, it's like a duffer trying to beat the club pro on the home course. Basically, the homeowner is at the mercy of the pro. Real estate agents know this and by the time many pre-foreclosure cases walk in the door, they're unable to help because the owner owes too much to make it worthwhile for the agent's commission.

Both the homeowner and the real estate agent need a professional foreclosure prevention specialist to negotiate with the bank on the behalf of both parties.

Make sure the professional you engage is focused on foreclosure "prevention" - not just foreclosure.

A key aspect of the negotiation is to work out the payoff amount the bank wants to leave enough to pay a real estate commission. If the homeowner needs to escape the oppressive adjustable rate mortgage payment while they still have credit left, the foreclosure prevention specialist can also show them how to arrange a short sale that helps them get payment relief without being on the hook for more money.

The foreclosure prevention specialist also gives both parties peace of mind. The specialist is working to protect the homeowner and real estate agent's interests and considers all possible options - from refinancing to selling at auction.

This is a complicated process and homeowners who face it alone often walk away sheared like a sheep while real estate agents leave money on the table. The smart thing for both parties to do is get a foreclosure prevention specialist involved to represent you and work for your best interests.

In this down-turned market, real estate agents have to work harder to make a sale and hold their breath for the buyer to qualify for a mortgage. The go-go adjustable rate mortgages (ARMs) that made it easy for first time buyers and those with less stable credit to get a home are no longer an attractive option.

As a result, experienced real estate agents are looking for the prime clients who can qualify for loans with ease. Real estate agents are not as interested in working with pre-foreclosure clients.

While these homeowners are "motivated sellers" - they are also seen as a risk. If you buy into the idea that pre-foreclosures are losing deals that may erode your commission, then you're missing a large market opportunity.

Investors are coming out in droves to buy bargain properties. Homeowners facing foreclosure are desperate to sell. All you need to do is get those buyers and seller together and you have a deal.

Smart real estate agents work closely with foreclosure prevention specialists who expertly negotiate a lower payoff with the bank so that their real estate commission is protected. That's a win-win deal that you can use in this erratic market to boost your overall earnings.

Over 1.3 million homeowners received pre-foreclosure notices last year and nearly 1% of homeowners in the United States are in the foreclosure process.

Investors are in a buying spree. Real estate agents who are looking for new markets need to consider the foreclosure market by partnering with a reputable foreclosure prevention specialist.