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.

Smart Hints to Successful Buying of Bank Owned Foreclosures

Bank owned foreclosures refer to those that have reverted to the bank’s ownership after a public sale. These properties can range from single units to multi-family units, condominiums, apartments, townhouses, duplexes and other types of structures. Once these properties become REOs or bank owned, they will be listed as for sale usually through listings provider or real estate brokers. Although you can choose from a wide selection of properties from a foreclosures list, it is still important to take note of the following guides to ensure that your investment is adequately protected and remains an asset rather than a liability.

Always Inspect The Property

Inspection of the property is very important. The photographs showing a property’s facade or any of its angles will not compensate for a thorough, personal inspection. Photos will not show the leaks, broken tiles, smashed windows, molds, and other repairs that are needed to be done on the property. A licensed home inspector can help you assess the damage and state of the property as well as give you a written estimate of the repairs that should be done on the property.

An ocular inspection will not only provide you a firsthand knowledge of the current state of bank owned foreclosures but give you a glimpse of the type of neighborhood surrounding them as well. You may also ask a few questions from the people in the neighborhood about their personal experiences in living in the area and other questions which would give you a clearer picture of what to expect. The information that you will gather from a house visit should help you in formulating your decisions later.

Research The Title

Once you have found a property that you are interested in, do a title search. You may want to search the public records to see if there are any outstanding debts, liens or judgment on the property. Any annotation should give you an idea that the property may still have to satisfy a money debt. You do not want to buy a property for which you would have to pay twice the amount as you would have paid for one with a clean, good title. If the property has any outstanding tax or property liens, you may have to pay for them before you can have the title.

Negotiate With The Bank

Although banks necessarily want as much amount as they can gather from a property to recover any of their losses, they can still be open for negotiations especially if the subject property is one which has been on the market for too long. Normally, banks are flexible when it comes to bank owned foreclosures that are in need of major repairs. If you are one who can manage a fixer upper property and a remodeling project either for resale or rental, then negotiating with the bank can give you a favorable outcome.

3 Secrets To Gaining Profits From Property Foreclosures

Property foreclosure is a legal process, which is undertaken by the lender when the borrower stops making loan repayments. The law enables lenders to recover their money, by allowing them the right to sell the assets, which are used as collateral by the borrowers. Instead of wallowing about losing your assets, you should look for ways to gain profits from property foreclosures. Here are some tricks to help you with this:

1. Bid At A Foreclosure Auction

One way to ensure that you don’t get the short end of the stick after losing your property to foreclosure, is by participating in the auction. While you will still have to shell out money to claim the property you originally owned, you won’t have to pay as much as you initially did. But remember, no information about the property is given other than its legal description. Also, you must pay cash, and there is no contingency allowance for financing.

2. Directly Purchase An REO

REO or Real Estate Owned properties can be targeted to attain profits from foreclosed properties. Since lenders often want to remove REOs from their books as quickly as possible, they may grant buyers favorable terms of sale, such as low or no closing costs, below-market interest rates, and low down payments. Moreover, when the property needs repair work, lenders are willing to accept offers at a discount price. To find the perfect REO for yourself, you can follow up after foreclosure sales, or by contacting a real estate agent.

3. Target Distressed Owners

Another easy way to earn profits from property foreclosures is by actively seeking out a borrower whose property is being foreclosed. There are a lot of reasons why borrowers might miss out on loan payments, such as personal crisis, loss in business, and losing their jobs. You can help them salvage their credit record and some equity, while simultaneously securing a bargain for yourself and earning profits. But keep in mind that people undergoing foreclosure won’t be in the best of moods, so you will have to patiently deal with them.

In today’s turbulent real estate market, property foreclosures are becoming quite common. But don’t fret and remember, buying from a motivated seller undergoing foreclosure, from an auction, or from a lender, will surely lead to excellent results. A few smart strategies and a detailed understanding of the loan market, will help you earn profits in this industry.

Why There is a Rise in the Number of People Looking For Information on How to Avoid Foreclosures

For those of us who monitor trends in Internet searches, there has been an incontestable rise in the number of people looking for information on how to avoid foreclosures. To be sure, this is one topic on which information has always been highly sought. What has changed though, is that while searches for information on it used to be occasional (and by only so many people at a time), they have now become phenomenal; so that almost everybody seems to be looking for information on how to avoid foreclosures.

The people looking for information on how to avoid foreclosures can be seen as falling into two broad categories. In one category are those who are facing imminent foreclosures themselves. These are many, for the world is going through one of the worst economic crises ever. And in the second category are those who are not directly facing foreclosures, but who have friends and relatives in that particular – and often distressing – predicament. So they are looking for information on how to avoid foreclosures on behalf of those friends and relatives of theirs.

One question that is likely to come up in all this is as to why there is such a rise in the number of people looking for information on how to avoid foreclosures. To this question, only one major answer can be identified: tough economic times.

As alluded to earlier, there is no denying that the world economy is going through one of the roughest stretches it has had to go through in recent days. What is particularly distressing about the current tough stretch that the world is going through is that it is taking place so soon after a major boom: which many of us had come to assume would last forever.

During the boom, many people took up mortgages to buy what they considered comfortable homes. These were, in most cases, quite expensive homes – but many of us did not see the problem in taking up mortgages for them, for our economic outlook looked good. Things could only get better, or so we thought. It doesn't help matters, either, that the so-called sub-prime mortgage lenders were giving money to pretty much everybody who asked for it.

Then came the recession – and people who were previously comfortably repaying all their debts, including the mortgage (and being left with money to spare), suddenly find themselves struggling to continue meeting their obligations. This they do, when faced with job losses, of which we have experienced millions in the last one year. A job loss for most people servicing a mortgage translates to an imminent foreclosure – unless they can secure another job soon, which is proving to be a hard bet in this economy. So faced with a situation like this, many find themselves forced to go looking for the information on how to avoid foreclosure, as they try to sort out their finances.

Thankfully, the pundits tell us that the global economy is picking again. We are, however, yet to see whether this will translate to improved earnings for the masses, and fewer searches for information on how to avoid foreclosures.