Brokers, Agents and the Foreclosure Market

Brokers and Agents should take a good look at the foreclosure marketplace for several reasons not just to broaden the range of services they offer and enjoy increased sales but to get a better understanding of consumer behavior.

The idea of saving money on a home purchase is fascinating and most often in this regard consumer’s seek information about foreclosed properties.

Saving money may not always work on foreclosure deals. Whatever be the consumer’s interest –the need or desire to purchase a property or choosing to buy a foreclosed home, it all settles down to purchasing a property. In this situation, the broker/agent has plenty of opportunities to make a sale.

Foreclosed homes are now sold by brokers/agents representing the lending institution that foreclosed the mortgage or trust deed. Facts are lenders have realized the regular distribution channel for real estate sales remains the best. So selling their foreclosed property inventory through brokers/agents is the fastest and most economical way for lenders to dispose these properties.

Things you need to know

• - Offer customers known foreclosed properties along with the other real estate services
  
• - Most often foreclosed properties are listed and ready to be shown immediately
• - "Post-foreclosure" properties have no liens, encumbrances or other issues that may cause hindrances
• - "Post-foreclosure" properties are RTG (ready-to-go) and these properties should be mixed in with your regular inventory
• - Difference between "Post-foreclosure" properties and other resale’s is lender has to force a foreclosure proceeding for non-compliance with the mortgage or trust deed
• - Most foreclosures are sold at market value
  
• - Broker's opinion of price and market value, determines condition of property and fair value

Where to get the best deals: The free real estate magazines available in supermarkets and convenient stores are filled with ads from brokers/agents offering foreclosed properties. These brokers/agents have learned the value of offering these properties and there are regular queries about foreclosed properties from prospective buyers.

No special requirements for selling lender-owned properties: The seller's representative which is the local brokerage will offer these properties for sale. You can participate in the transaction like you would with any other home purchase or sale, new construction, resale, foreclosure or any other.

NOTE: Since the regulations regarding the sale of government-owned properties has changed frequently in the last few years and to make sure you're up-to-date on the latest changes, please visit hud.gov for HUD-owned properties and va.gov for VA-owned properties.

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