Foreclosure Hardship Letter – Sample For Bank Loss Mitigation Department

A foreclosure hardship letter is an integral part of Loan Modification or Short Sale package. When homeowners are facing foreclosure, these documents are submitted to the Loss Mitigation Department of the mortgage lender. Loan modifications are offered to homeowners who have the financial ability to become current on delinquent payments. Short sales are offered to homeowners who do not have the financial means to pay their mortgage payments. Lenders who accept short sales offers agree to accept less than is owed on the mortgage note.

For most people, the foreclosure hardship letter is the most difficult aspect of loan modification or short sale procedures. It can be excruciatingly painful to express on paper the circumstances which caused the homeowner to fall behind on their mortgage payments. Many people are intimidated by the hardship letter. They don’t know what to say or how to format the letter so it is easy to read and understand.

Keep in mind, foreclosures and short sales are handled by the Loss Mitigation Department of your lender. Employees of this department are referred to as Loss Mitigators. Before you can submit a loan modification or short sale package, you must receive approval from the Loss Mitigator assigned to your account.

More than likely, you will have ample opportunities to personally speak to the Loss Mitigator handling your account. These individuals deal with homeowners in financial distress on a daily basis. Take advantage of building a relationship with your assigned mitigator and ask questions to help you better understand what your mitigator expects. Loss mitigators can make or break your deal, so always treat them with respect and provide them the information they request.

Your foreclosure hardship letter will be read by your personal loss mitigator. Realize these individuals receive dozens of hardship letters daily. Therefore, it is crucial to keep your letter short and to the point, while covering pertinent facts.

When composing your hardship letter you can either write it by hand or type it. If your handwriting is illegible, it is best to type the letter or have someone else write it for you. The foreclosure hardship letter is one of the most crucial elements of your loan modification or short sale package, so take every precaution to ensure the Loss Mitigator can easily read and understand it.

Real estate experts recommend using a business format for the foreclosure hardship letter. This involves placing your name, address, city, zip and phone number at the top of the page. Leave two spaces, then write the name of your loss mitigator, name of your mortgage lender, along with their mailing address. The next line should include the current date. Place your loan number underneath the date. The body of the letter should be between four and six paragraphs. Close the letter by signing and printing your name.

The following is an example of the foreclosure hardship letter. You can make adjustments to the text depending on if you are seeking a loan modification or short sale arrangement.

Bob and Jane Smith

123 Any Street

Your City, State 12345

Tom Jones

USA Lender

123 Anywhere Avenue, Suite A

Anytown, State 12345

Current Date

RE: Your Loan Number (include either Loan Modification or Short Sale)

Dear Mr. Jones,

We are contacting you today to request a (loan modification or short sale) for our property located at (insert address, city, state). We appreciate the opportunity to explain the circumstances which have caused us to fall behind on our mortgage payments. Although we have done everything possible to improve our financial situation, we are still short on the money owed to you.

The reason we have become delinquent in our mortgage payments is (explain the reason here). At this time we do not have enough income to pay our regular monthly mortgage payment. We are concerned that we are falling further behind and will not be able to pay what is owed. We have every intention of paying what is owed, but at this time do not know how to accomplish this. Therefore, we are turning to you for assistance.

We are asking for consideration to temporarily reduce or suspend our mortgage payments for a few months (or allow us to sell our home via a short sale). Doing so, would help us get back on track. Our home means a great deal to us and we desire to work with you to keep it out of foreclosure. Please advise of all options available to stop foreclosure (or initiate a short sale) at your earliest convenience. We are anxious to reach an agreement and appreciate your prompt response.

Respectfully yours,

Print name of Borrower(s)

Signature of Borrower(s)

Loan #

Address

Phone

email address (if applicable)

It is imperative to send the foreclosure hardship letter via certified mail with a return receipt requested. This will ensure you have proof you sent the letter. The return receipt must be signed by someone at the lending institution and the signature card will be returned to you in the mail.

Is A Short Sale The Right Choice?

With the decline in home values in the past few years, some homeowners who need to sell in the current market find themselves trapped, as they owe more than their home is worth. In this situation, the short sale can become a viable option.

What is a short sale:

A short sale is simply a sale in which the proceeds are not enough to cover all of the outstanding obligations associated with the sale of the home including the mortgage or mortgages, unpaid property taxes, attorney’s fees, title expenses, commissions, etc. This shortage would require the seller to bring money to the closing or to negotiate a “shorted” payoff with their lender. The lender has no obligation to agree to this, but many will. In most cases, a short sale is attempted by sellers who are facing foreclosure or have fallen behind and no longer have the ability to continue making their payments.

The process:

There are a lot of misconceptions about the short sale process and the lender’s role in it, even among some Realtor®s. The seller’s lender’s role is nothing more than that of a contingency. This can vary by state depending on whether it’s a title theory state or lien theory state. This information applies to Illinois, which is a lien theory state (the owner holds title and the lender holds a lien on the property)

The seller owns the home and ultimately is the one who, with the help of their agent, accepts, rejects or proposes a counter offer once an offer is received. When the offer is accepted by the seller, it is done so contingent on their lender agreeing to accept the net proceeds of the sale as full settlement of the amounts owed. I’ve had more than one occasion where an agent working for a buyer asks when their offer will be submitted to the bank, even before the seller has agreed to accept it. It can add to the confusion if multiple offers are received. Some think that all offers must be presented to the lender. This is not accurate. All offers must be presented to the seller, not to the lender. The goal of the listing agent should be to obtain the best offer possible, thereby giving the transaction the best possible chance of actually closing.

What are the odds of a successful closing?

They’re actually better than they used to be. Nowadays it makes sense for banks to seriously consider accepting a short sale as, in many cases, they net more money overall versus going through the whole foreclosure process, taking the home back and marketing it as an REO (Real Estate Owned). Illinois is a judicial foreclosure state. Some states are non-judicial. Judicial foreclosures take much more time to complete. In Illinois, the process can take a year or more. There are some states which take upwards of 3 years. When you consider that, in most cases, the bank is receiving nothing while the process drags along, you start to see their motivation to consider other options. Add to this the deterioration to the property during that time and the additional carrying costs, and the benefits to the bank become even more clear. The bank in this situation, much like the homeowner, is looking for the best way to limit their losses.

The benefits of a short sale:

Lenders generally don’t allow the seller to receive any of the proceeds of the sale. This is fair when you consider that the whole basis of the short sale is negotiating with the lender to get them to take less than what they’re owed. The only exception I’ve seen to this was years ago when, due to an error, we were out of balance by $.06 The title company actually cut a check to the seller for six cents! As a seller in this situation, one needs to keep in mind that, if the lender agrees to the short sale, they are allowing the seller to avoid having a foreclosure on their record which follows them around for many years. Additionally, most short sales also let the seller out from under the debt without being chased for a deficiency. These two things should be all the motivation you need. there are no guarantees of being successful but it’s certainly worth the effort.

Who should you call?

These transactions are not for beginners. There is no substitute for experience when it comes to navigating through this process. An experienced agent and attorney are crucial. In this situation it makes sense to ask a lot of questions. There are specialized short sale/foreclosure courses available for agents. Some are very worthwhile but these courses alone don’t necessarily make the agent an expert. An agent referred by a seller who’s been through this process is definitely someone worth talking to.

What will it cost?

In most cases, it will cost you nothing unless there’s an upfront fee charged by the agent to list the home. All agents negotiate their own fees. It should cost you nothing to talk to an agent and get information. All commissions and other closing costs a seller would normally pay will be factored in and, if the lender agrees to the short sale, they are agreeing to the net amount of the sale so essentially, it is the lender that is paying your closing costs. For someone facing foreclosure, a short sale can be an excellent solution.

Foreclosure Woes

If your mortgage is at a very large bank, you have made a mistake! Trying to work out a solution to your deficiency is very complicated and the service is lousy. Your foreclosure woes have begun!

A friend was delinquent with her mortgage payments. She had owned her property for 37 years. The bank filed the papers to put the property in receivership (foreclosure action) to the bank. The friend immediately phoned the bank to see if there was anything she could do. She worked out a plan with the bank to reduce her payments and followed through for 13 months of on-time, full, adjusted payments. When she attempted to make the 14th payment, the bank returned it.

One day, she received a notice that her home was scheduled for a “Sheriff’s Sale.” Puzzled by the notice, she immediately phoned the bank and was told that they did not need to file any more legal papers, since they had previously filed the necessary papers (before she made the arrangements) and the application for Obama mortgage assistance had been rejected. What this means is that the deficit, the difference between payments under existing mortgage and the adjusted payments while the Obama mortgage assistance modification application was awaiting approval or rejection, was due in full when the application was rejected. Example: Payment under existing mortgage, $1100; payment under Obama mortgage assistance, $700. Rejection would mean $400 X 13 or $5,200 would be due immediately and there could be fees attached. During the 13 months, no statement showing her account was ever provided by the bank. She was advised that when a mortgage is in default, the bank has no legal obligation to provide a statement of the account.

The bank purchased the property at the “Sheriff’s Sale”. Did you know that following a “Sheriff’s Sale” and confirmation of the sale, the bank (buyer) only must give you 48 hours to vacate? Furthermore, you will have all these strangers entering your property to complete various tasks on behalf of the lender/buyer (the bank).

People all around me are losing their homes due to foreclosure. It is almost a repeat of the Great Depression. The exception is that in the Great Depression, saved money placed with banks was also lost. Today, bank accounts are insured by the FDIC.

What brought this dilemma on? My thoughts on this are that credit was “too easy”! On the lender side, banks and mortgage companies were willing to be liable for too much mortgage. On the buyer side, a lack of concern and understanding of how much debt was being taken on. No one planned on losing a job or other circumstances, not being able to meet those mortgage payments. You always want the lowest payment possible at the lowest interest rate. I personally experienced this. When times are tough, you need to work closely with your lender. In 1946, a family member, who owned with a mortgage loan, sometimes only made the interest payment of the mortgage due to hardship. They did not lose their property but many years later, paid it off. Could this be a solution to the present day foreclosure woes?

The Obama Making Home Affordable program (loan modification program) is a complete disaster. Those who really need the help are not getting it. A recent conversation with my banker revealed the seminars attended by the financial employees of mortgage lending institutions left them with a big blank trying to understand what the heck it is supposed to do. The mortgage lending firms are less than helpful to the customers who have or will be very shortly losing their homes. One application was returned reject because the owner’s income was too low. Isn’t that what a loan modification should be considering when reviewing need? Very few people have been approved under the Making Home Affordable program.

If you are having a problem making your mortgage loan payments, the best thing you can do is visit your lender in person and suggest that maybe you could just pay the interest on the loan for a period of time.

Obviously, not being able to pay your mortgage payment is a very serious situation and should be avoided at all costs, even to the point of putting the property up for sale. You will not see a penny of your equity should you allow your lender to foreclose. It is also very important that your mortgage lender is local.

How Soon Can You Be Evicted After The Foreclosure Sheriff Sale?

Homeowners in foreclosure are rightfully worried about not being able to save their homes and how quickly they will be evicted after the sheriff sale. Although the lender and various “experts” will threaten them with the sheriff showing up the next day to violently kick them out of the house, this is just not the case in foreclosure situation. The county sheriff and the eviction crew will not show up the next day after the sheriff sale, and homeowners should ignore the fear-mongering that threatens this possibility.

Owners should be aware of the implications of the foreclosure auction, though. The sheriff sale will transfer ownership of the property, and the foreclosure victims will not own the house after this point. But this does not mean that the eviction process will happen automatically right after the house is auctioned, as there are more steps that will need to be taken by the new owner.

The high bidder at the auction will most likely have to have the sheriff sale confirmed (this is not a specifically detailed step in every state). This can take from a few days to a couple of weeks after the auction, depending on how quickly the courts and new owner act. But this is generally just a simple step in the foreclosure process after the sale that involves the sheriff and judge confirming the auction was for a legal amount and that the deed has now been awarded to the new owner.

The new owner will most likely be the original foreclosing bank that the homeowners had been dealing with in the first place to stop foreclosure. About 95% of foreclosures end up being purchased by the lender, rather than a third party.

In order to evict former homeowners, the lender will have to request the court grant it possession of the property and order the county sheriff to evict any remaining people or personal items and change the locks. This is a legal process, though. Homeowners should not fear that a bunch of government thugs with badges and guns will show up at their house the day after the sheriff sale to kick them out. Of course, this is exactly what happens, but at a later date if the foreclosure victims do not move out in time.

But the entire eviction process can take up to a month after the sale; throwing people out of their homes is not a simple process before or after a county auction. The court will have no problem ordering the eviction (unless the former owners go and try to contest the sale, eviction order, etc.), but the sheriff’s department will have to give notice of the impending removal. This can be as little as posting a piece of paper on the property with three days notice to move. Thus, after the sheriff sale, former homeowners better be prepared to leave on their own or work out another solution.

People facing foreclosure should not be overly concerned about being kicked out of a house with little notice. The sheriff will not just show up the next day or a few hours after the sheriff sale, as there is still a legal process that must be followed for a bank to take back possession of a foreclosed property. Homeowners probably have at least two weeks to a month after the sheriff sale date to arrange for a new place to move into.

In any event, homeowners are always encouraged to call the sheriff’s department to ask them when then eviction will take place. Even more promising, they can also usually ask for a few extra days or a week in order to move everything out and give up the house peacefully. There is still a chance to negotiate with the local government for more time (courts and sheriff) so that the former owners are not taken by surprise by the eviction.

Thus, the banks and government officials will not evict foreclosure victims right away after the auction, but there is no time to spare, either. Having a couple of weeks to move out can give people a chance to find a place and move in at their own pace, but even a month-long eviction process will go by very quickly. If in doubt, homeowners should contact their local government officials and ask about the eviction — the courts or sheriff will be able to inform them of the date and try to work out the most reasonable solution. They want as little trouble after foreclosure as the former homeowners do.

Capitalize on Pre-Foreclosure Listings For Potentially Higher Profits

A home that is a pre-foreclosure listing is one that is in between the time when the first Notice of Sale has been issued by the bank, and the actual foreclosure auction where the home sells or the bank takes possession. There are ninety days given to the home owner to clear up the outstanding debt on the home, before the actual foreclosure happens. During this time an investor, or home buyer, has a great opportunity to capitalize of the pre-foreclosure listings.

Find Quality Pre-Foreclosure Listings

To get the best deal, you need to find the best quality homes. Look in the weekly newspaper for pre-foreclosure listings, and check out your counties records office. These will have the recent listings for you to check out.

Get A Home Inspection

If you find a home that you might be interested in take this opportunity to have a home inspection done. You might have to pay for this, but it is worth it if you plan to go ahead with purchasing the home.

Two Buying Options

After you know that the pre-foreclosure listing can be a good investment opportunity, then you have two options open to you as a buyer.

First, you can make an offer directly to the home owner themselves. Get your offer in writing, this is made a lot easier when you get a real estate agent to help you, and present it to the home owner. During this time, if the owner is still in the home, they will want to sell to avoid actual foreclosure and any credit damage. Most times, a pre-foreclosure listing can be bought here and at a very good, below market value price.

The second way is to wait until the foreclosure auction. If you have determined that the home is worthy of bidding on, and the homeowner is either absent or doesn’t want to sell for a lower price, then you can bid at auction.

Five Good Books on Foreclosure Fraud

According to Waters of Marketwatch.com, Mortgage and real estate-related frauds is the ninth most prevalent consumer scams this year, with the fake landlord and timeshare resale complaints getting the most attention from the authorities.

Ever since the Housing bubble in 2008, the incidences of mortgage-related frauds and scams have escalated to an alarming degree. Numerous homeowners have lost their homes and properties due to scam victimization, and more cases are still being reported even up to this very hour. Everyday scam artists develop new ways of tricking money out of innocent people, which accounts for why new numbers are being added to the scam victims’ statistics despite government awareness campaigns.

The fact is that it isn’t enough for consumers to entrust the issue of foreclosure scams and rip offs to federal and state agencies. Nowadays, the state and its citizen must employ a collaborative approach to fight against this type of fraudulent activities. The agencies are doing their part by busting professional and white-collared criminals. The citizens, on the other hand, should take the responsibility of educating and updating themselves about the latest scam profiles and techniques.

In light of this, several books and instructional materials about real-estate scams have been released in the market. Many authors, real-estate experts, and concerned opinion leaders have written useful tips about the scam industry to empower the regular citizens. This article is dedicated to five of the most helpful books on this subject.

Five Books of Foreclosure Fraud

People Get Screwed All the Time: Protecting Yourself From Scams, Fraud, Identity Theft, Fine Print, and More, 2007, Robert Massi

This 368-page book doesn’t just focus on real estate scams, it also covers other types of fraud that could potentially hit individuals anytime. Even though it was written by an attorney, this book aims to explain the US federal laws and its effect on citizens’ lives in plain English. Getting past through the intense scrutiny of the federal government, this book will provide you with invaluable knowledge about the loopholes in our government and what you should do to avoid being victimized by these loopholes. The book presents the subject matter in an engaging manner by using the actual experiences and stories that people can relate to. After reading this, it’s less possible that you would get caught up in undesirable after-scam situations.

 The Truth about Avoiding Scams, 2008, by Steve Weisman


“Scams can be high tech, low tech, or no tech – be prepared.”

Weisman tells about the truth on several fraud and scam activities waiting to victimize people. In this book, you can view an entire chapter for real-estate related fraud in “The Truth about Home Scams”. Immediately following this is a closely related article, investment frauds and scams, which mentioned the foreclosure and short sale scams which are prevalent in the market. The examples and scams he cited are relevant and timely, including the popular Online scams called phising and vishing. Although the discussion doesn’t go deep enough (much discussion dwells on the obvious), it’s still worthwhile to read the book because the tips and solutions he gave are still helpful.

The Art of the Steal: How to Protect Yourself and Your Business from Fraud–America’s #1 Crime, 2001, Frank W. Abagnale

This is probably the most intriguing and interesting book about frauds and scams that people can find Online. Although it wasn’t really about foreclosure and real-estate scams and totally outdates, I still deem it a necessity for people to read this book because of one simple fact: it was written by one of the most effective scam artists in the world (And probably because I was a fan of Leonardo di Caprio and his great personification of Abagnale’s character in Catch Me If You Can). By reading this book, people can get a glimpse of what scam artists would think of when they are looking for preys, and how they trap this victim with the web of lies they skillfully crafted. Take a closer look at the psychological profile of scam artists; after all, you probably wouldn’t mind reading this since it also provides entertainment value.

Protect Yourself from Real Estate and Mortgage Fraud: Preserving the American Dream of Homeownership, 2007, Roberts, Dollar and Kraynak

If you’re going to read this book, I suggest that you immediately jump on the pages dedicated for equity skimming and foreclosure rescues because I personally find those parts most interesting. Of all the books in this list, this one is probably the most helpful because it is solely dedicated and focused on information about current real-estate frauds and scams. It provides detailed step-by-step tips on how you can detect foreclosure scams and in post-scam cases run after and get back at your scam perpetrators. The story-based approach makes the reading process endurable, whilst also making the moral of the scam stories a lot easier to digest.

The 2012 Consumer Action Handbook

Of course, what is the best way to avoid consumer scams than to read this year’s consumer action handbook? People have to keep themselves updated because scam and fraud artists are always on the business of developing “better, spot-free” fraud techniques. “The best thing about consumer handbook is that they are regularly updated, so people are constantly informed about the complaints, current ploys, and traps set out in the market,” a friend of mine says.

The sad thing is that no monthly updates are available for this book, so consumers must also regularly tune in to news reports about consumer scams.

Bank Security Fraud Securitization In Illegal Mortgage Foreclosure Actions

Bank Security Fraud Securitization In Illegal Mortgage Foreclosure or bank securitization is a scheme by the banks to sell your promissory note and mortgage many, many times and making multiple amounts of money using your debt signature and good credit to swindle you out or your home or property by placing your mortgage and note in a pool of loans within a Trust.

After this mortgage and note securitization happens, your mortgage loan is electronically recorded and this strips the equality out of your note making it a worthless piece of paper. Inside the Trust, your note gets converted from a security under the Uniformed Commercial Code, UCC, Article 3, to a Stock Certificate under UCC Article 8, and selling just a small part of the same Stock Certificate to thousands and thousands of investors many times.

It is similar to you selling the same car title to many people for the same price, but you would be arrested for fraud if you did this as the banks are doing and getting away with robbery and theft of your home and commercial property.

After your promissory note was sold into the trust and was converted into a stock certificate, your note had to be destroyed under the Federal Security Law… No more Note… No more Mortgage, but hello Mortgage Foreclosure fraud!

The Trust is controlled by the Lender’s Pooling and Servicing Agreement, PSA, which spells out that the original Note and Mortgage are accepted by the Trust Custodian, what the Trustee’s job is, and the conversion of the note into a stock certificate. Almost all the time the Lender, Trustee, Investor, or Servicer DO NOT follow their own PSA or legal rules against The Securities Exchange Commission, SEC, rules and laws; therefore, the fraud against WE THE PEOPLE starts and is perpetuated by greedy lawyers representing the greedy banks in an illegal mortgage foreclosure.

This is why homeowners need to complete the Phase One, Notary Administrative procedure to satisfy the “Clean Hands Theory” to show that there is nothing to hide and to exhaust all other remedies before you begin Phase Three. This legal procedure falls under the UCC, Article 3 and all State laws.

The Bank Security Fraud Securitization Audit In any Mortgage Foreclosure is the Second Phase in this Three Phase process to get your Mortgage Lien Released so you can own your home FREE and CLEAR in under 6 months.

Free Tax Foreclosure Listings

Tax foreclosure is a situation in which the home owner is unable to keep up with their government property taxes. In this situation, the government tax agency takes possession of the property and sells the it as soon as possible. The process of foreclosure goes on; the main objective of the agency is to sell the property very soon. They sell the property at a very low price, which is often even less than the market price.

How to Get Started with Tax Foreclosures

There are tons of online foreclosure listing services available. Nevertheless, before you subscribe to a service do several studies, as the superiority of every service can very from one to another. Find out where they gather their information. Also find how frequently they update the foreclosure listings and how regularly old listings are removed. The best foreclosure listing websites are usually voted to be the most major sites. These sites have been around for years, and have developed a solid reputation for quality properties.

Browse Online Foreclosure Listing, Free of Charge!

If you have any problem in paying the monthly fee which is charged by all major sites, then there is no difficulty. The majority of websites offer a 7 day free trial membership, through which you are granted full access to all the listing of the websites. These free trial memberships are the perfect way to get started with tax foreclosures, right now. You can even try out the trial membership from more than one website, which will allow you to find your favorite.

Foreclosure Listing Sites That Are Totally Free

Totally free foreclosure listing sites are definitely not a gimmick. These sites are assisting home buyers and investors with the opportunity to view multiple listings in a matter of minutes without leaving their home or office. Usually the listing sites offer a limited free usage of 7 days, which is ample time for home buyers looking for a one time property purchase. Investors and home buyers interested in more than one foreclosure will be interested in extending their service by enrolling in membership. The membership fee is nominal and there are no fees involved when suspending the service. This listing service is helping the housing industry along with homebuyers and investors.

The real estate arena is flooded with home foreclosures due to the current depressed housing market. This is a buyers’ paradise with the lowest prices in decades, tagged on these bank owned properties. The time saved by using a free listing service is priceless with busy consumers. There is adequate buying information about the homes and many times pictures are offered for viewing purposes on the free listing sites. This is the perfect way to spend a Saturday afternoon, instead of driving around town for hours. Going from one home site to another is tiring and can be difficult to keep track of the different home sites visited.

Taking a tour of foreclosed homes through a free listing service is comfortable and inexpensive. A lot of information can be gained in a short period of time which can pare down a long list of potential homes to just a few for viewing in person. Take advantage of the free foreclosure listing sites and become a savvy home buyer in a few minutes, or take your time and enjoy an afternoon of viewing homes with great deals.

How Any Real Estate Agent Can Generate New Leads & Listings from Foreclosures

The title to this article is a pretty bold statement, but if you’ll allow me a couple of minutes of your time today, I’ll show you how you can take advantage of a brand-new Real Estate niche that most Agents don’t know about. It’s not that they aren’t aware of it; it’s just that they haven’t put two & two together.

This new source of Real Estate Leads could mean another 100 – 600 new, very motivated (Seller) Leads that are desperate for your professional help. And that’s only for a market of 100,000 homes. You’re market could have even more.

Why hasn’t this opportunity been available before?

Well, before now all the pieces were not readily available. Today, the technology is in place, the turnkey business-in-a-box-training-systems are available, and the market for this business is very ripe & growing.

Foreclosures will be the next big thing in Real Estate Leads

We are often asked by our Coaches Corner{tm} Newsletter Subscribers (350,000+): “What’s the next big thing going to be for Real Estate Agents?”

Well, if you asked me that question specific to Real Estate Lead Generation, I’d have to say Foreclosures & PreForeclosures are going to be the next big thing for New Real Estate Lead Generation.

You’ve probably already heard that Real Estate Foreclosures, as of April 2007 U.S. Foreclosure Market Report (published by RealtyTrac® – the #1 online authority for Foreclosure data), are up by 62% nationwide from April 2006. Some states are up by as much as 3,325% (New Hampshire).

Real Estate Foreclosures Rates continue to grow

Recently USA Today printed an article about the fact that 75% of the new home mortgages in California are No-Doc-Loans (some industry experts call them liar-loans). These No-Doc-Loans allow the homeowner to use stated income and often allow them to borrow more money at higher debt-to-income ratios than they could traditionally. The no-doc loans have become very prevalent in the last couple of years and are now widely used nationwide.

In my opinion, the majority of these liar-loans are Real Estate Foreclosures in embryo. It’s likely just a matter of time before the homeowners get into trouble and fall into Foreclosure.

Over a Million Real Estate Foreclosures Each Year

According to RealtyTrac®, with whom we’ve established an exclusive partnership, the number of Foreclosures will likely exceed 1.2 million this year if we continue at this pace. To read the complete May 15th, 2007 press release for RealtyTrac®’s U.S. Foreclosure Market Report click here.

What this means for the average Real Estate Agent in a market with 100,000 households is that about 127 new properties will enter some state of Foreclosure per month. Some of the not-so-average counties will see 431 new foreclosures per month for those same 100,000 households. So, that means that there will be 14 new Real Estate Foreclosure Listings per day per 100,000 households.

If you had the home seller information in a timely manner and were equipped to deal with this specific type of lead, it could mean 100 – 500 brand new leads every month in a market with 100,000 households.

Most Real Estate Agents don’t know how to handle prospects in Foreclosure and usually see them as junk prospects. So, there’s very little competition for you in this niche if you become a Real Estate Foreclosure Expert.

Couple that with a very highly motivated home seller, and you have a recipe for New Lead Generation Success.

Do you know your State’s Foreclosure Rate? If it’s only the national average, you’ll have 1 Foreclosure for every 783 households like quite a bit of the country? How many households do you have in your market, and what does that equate to in Foreclosures? A whole lot no matter where you live!

The Foreclosure Rates are growing almost everywhere and there are already an enormous amount of potential leads for you where you live, so take action and equip yourself with as much information as you can on Real Estate Foreclosures. The information will help you carve out a brand new niche in Real Estate Foreclosures in your area and help you grow your Real Estate Business.