What is a Foreclosure Real Estate Agent?
What is a foreclosure real estate agent? As the pandemic continues, more homeowners are concerned about the effects of making a late mortgage payment. Some homeowners are several months behind in making mortgage payments. Homeowners are worried about losing their homes and are unsure of what steps to take. Losing a home is a traumatic event for individuals and families who have little control over employment and income because of the pandemic.
This article offers education and information for homeowners at risk of making a late mortgage payment and worrying about losing their homes. There may be a time when you realize that it is not practical or financially feasible to stay in a home.
Sam Wilson Realtor is a foreclosure real estate agent with extensive experience in Denver short sales, pre-foreclosures, and foreclosure home sales. Information for home buyers interested in distressed properties is also in this real estate blog post.
Answers to frequently asked questions about the foreclosure process include:
- Do current trends indicate a potential foreclosure real estate market?
- What is a foreclosure real estate agent?
- What is a distressed property?
- What steps can homeowners take if concerns exist about making late mortgage payments?
- How does a foreclosure real estate agent work with home sellers?
- How does a foreclosure real estate agent work with homebuyers interested in buying a distressed property?
National Foreclosure Trends
According to CoreLogic, “the share of loans with payments 90 days to 119 days late quadrupled between May and June 2020 rising to 2.3% the highest level in more than 21 years.” Almost 10 million Americans lost their homes to foreclosures in the U.S. between 2006 and 2014.
The loss of jobs and income as a result of COVID-19 is having a significant effect on the real estate market. The pandemic allowed many homeowners to seek forbearance agreements that suspended home loan payments without penalties. However, the mortgage holder or lender still counts these loans to be late.
Colorado Foreclosure Trends
The last significant foreclosure peak in Colorado occurred between 2007 and 2010. If you live in Colorado, you can access ongoing foreclosure reports and statistics from the Colorado Department of Local Affairs.
These two charts below from the Colorado Department of Local Affairs Foreclosure Reports and Statistics show Colorado foreclosure filings and sale trends since 2003.
What is a Foreclosure Real Estate Agent?
Between 2006 to 2011, Sam Wilson, a foreclosure real estate agent, helped home sellers through the short sale, pre-foreclosure, and foreclosure home sale process. During this time, Sam helped home buyers purchase REO, short sale, and foreclosed properties.
Sam Wilson is a foreclosure real estate agent specialist who is highly sensitive to the emotional challenges that home sellers and home buyers face during challenging financial times. Specialized knowledge and expertise allow Sam to educate home sellers and home buyers about steps to manage the foreclosure process.
Working with foreclosure attorneys, banks, and lenders on behalf of clients is essential for a foreclosure real estate agent. If you are concerned about keeping up with mortgage payments, consult a foreclosure real estate agent to discuss options long before you are at risk of losing your home.
The importance of excellent real estate negotiation skills and experience in the home foreclosure market helps ease home sellers and home buyers’ worries. A foreclosure real estate agent may also be able to connect you with a foreclosure attorney and other professionals who can offer advice to help you make the best decision.
What is a Distressed Property?
A distressed property is a home or another property under foreclosure or being sold by a lender. When a homeowner is late in making mortgage payments and paying tax bills, a property becomes “distressed.” Distressed properties fall into three categories.
1) Foreclosed homes
A foreclosure occurs when a lender seizes a home or other type of property. At the time the property is taken, the owner must vacate the property. The lender’s goal is to sell the home fast to move the asset off their balance sheet. Therefore, foreclosed homes are often sold at significant discounts because the bank wants to pay off the mortgage and legal fees. In some cases, foreclosed homes are sold at auction to the highest bidder.
2) Real estate owned (REO) properties
An REO property is a home owned by the mortgage lender after the house fails to sell at a foreclosure auction. Properties go to a public trustee action in the state of Colorado before becoming an REO property. When the mortgage lender possesses the property, steps including evicting residents or tenants, paying off liens, or making some repairs may occur before the home is offered for sale.
3) Short sale
A short sale is when a homeowner sells their home for less than the amount owed on a mortgage loan. The terminology “short sale” means that the home seller is short on funds needed to pay off the mortgage in full. The bank or the mortgage owner agrees to the short sale to recoup a portion of the due mortgage funds. A short sale can be a proactive step taken by a homeowner to pay off a portion of a mortgage without walking away from the responsibility of home ownership.
What Steps Can Homeowners Take When Concerns Exist About Making Late Mortgage Payments?
If you are a homeowner concerned about making a late mortgage payment, it is crucial to be proactive. Here is a list of steps homeowners can take to avoid the foreclosure process:
- Review your mortgage statement to understand the equity you have in your home
- Contact the mortgage holder to ask about options for late payments, late charges, catching up on late payments, and other fees you might incur
- Don’t wait until the last minute to seek help. More options may exist the earlier you make contact with your mortgage company
- The lender may request additional financial information like recent pay stubs, monthly expenses, payments due, etc. to determine if options other than foreclosure exist
- Look at your current budget. Are there ways to reduce everyday expenses so that you can negotiate a different loan payment option?
- As mentioned, the forbearance agreements currently in places require that loans must be paid in full at the end of the forbearance period
- If you have equity in your home, your lender may agree to allow you to complete a short sale
- A deed in lieu of foreclosure means that you give the title to the property to the mortgage holder rather than going through the foreclosure process
- When in doubt, contact a foreclosure attorney to discuss all of the legal options available
- The Federal Trade Commission offers information about making a late mortgage payment
How a Foreclosure Real Estate Agent Works with Homeowners interested in Selling Their Home
A knowledgeable foreclosure real estate agent works with homeowners to educate the home selling and foreclosure process. Sam Wilson, a foreclosure real estate agent, will complete a thorough home valuation report so that you know the potential sale value of your home. Sam will also discuss the steps you can take to get your home sold fast and for the most money.
Deciding to sell a home that is no longer practical can be highly emotional for everyone involved. Learning about the process and timing of the sale of a home can help you make a plan to move forward to establish a new residence.
Negotiating the sale of a foreclosed home may take a little longer because of the multiple layers of required approval. Sam Wilson will be able to walk you through the detailed closing process so that you know what to expect.
How a Foreclosure Real Estate Agent Works with Home Buyers
Sam Wilson, a foreclosure real estate agent, can explain the process of purchasing a distressed home to home buyers. Buying a bank-owned home can be a very competitive process, with multiple bids placed by interested buyers.
- The bank must approve the offer. If a home requires extensive repairs, a lender may refuse to fund the entire purchase. Home buyers may have to find creative ways to identify additional funds for financing a purchase
- It’s essential to work with a real estate agent who has experience helping buyers of “as-is” property. Not every distressed home is a wise long-term choice
- A knowledgeable real estate agent will also be able to educate you about the potential of areas that have multiple homes moving through the foreclosure process
While no one dreams of being in a situation where leaving a home becomes a reasonable decision, upturns and downturns in the U.S. economy affect many homeowners. The pandemic affecting the United States in 2020 will have long-lasting effects on many areas of the economy and U.S. residents’ lives.
The best real estate advice is to act early and be proactive to have as many options available as possible.
Contact Sam Wilson, an experienced and knowledgeable foreclosure real estate agent, to talk about options for selling a home or buying a distressed property in the Denver Colorado area. Call or text 303-770-1250.
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