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Avoid Foreclosure: 7 Tips Realtors Show Homeonwers Facing Foreclosure - Get More Short Sale Listings

June 15, 2012 | Comments: 0 | Views: 184

Here is a list of options that homeowners have when faced with foreclosure. Any time you meet with a homeowner you should make them aware of these:

1. Loan Workout - can re-negotiate with the current lender. Also known as a Workout Program. This will buy the Homeowner time to improve their ability to make the payments or sell the home.

2. Refinance the loan - This is a great for those that qualify. Unfortunately it is impossible to get a loan on an over-leveraged house. So if the property owner owes more on the house than it is worth a refinance is not an option.

3. Loan Modification - This is a great option to lower the interest rate, but not necessarily the mortgage payment. They would need to contact their lender to find out what options are available and exactly what it takes to qualify.

4. Forbearance Agreement - can take the back due payments and fees and add them to the principle balance of the loan, or additional payments at the end of the loan.

5. Deed in Lieu of Foreclosure is an option for anyone that does NOT want to stay in the property. The Homeowner will hand over their deed to the lender to avoid the foreclosure.

6. Short Sale can be the best option for anyone that does not want to hold on to an over-leveraged depreciating asset. This is a WIN-WIN for both the lender and the homeowner. The lender does not have to incur the hefty foreclosure costs and the homeowner can get out from under the property without a foreclosure on their credit. The homeowner will need to qualify and the bank will need to approve.

7. Foreclosure is the last option and generally the worst for everyone involved. If the homeowner did nothing the property would simply make its way through the auction process. The foreclosure is one of the worst marks on a borrower's credit history. This will affect their ability to purchase another property in the near future as it stays on credit reports for five to seven years.

We encourage all of you to know all these options inside and out so that you can explain those options to the prospective home seller. Remember... the homeowner is not buying your service; they are buying you and your knowledge. This shows the Homeowner that you are trying to do what's in their best interest and that you really want to help!

You will see that when explained correctly, the homeowner will most often choose to work the short sale as appose to any of the other options.

The best way to get more Homeowners to work with you is by finding out what their motivation is. Do they really want to stay in the house? What ideally would they like to see happen with the property?

If you don't know what they really want, then how will you be able to give it to them? Sometimes they may want to try another option that you can't offer them... let them go, when it does not work, you will be the first person they call. Now you have their trust and know their true motivation.

By discussing the options completely, you will be able to show them why your no cost option is the best for them in most cases.

Learn more at Big Block Realty California's Best 100% commission brokerage.

Big Block Realty, California's Best 100% Commission Real Estate Brokerage.

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Source: EzineArticles
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