Early in 2009, the National Association of Realtors (NAR) saw the handwriting on the wall.  On March 1^st, the 1.2 million-member trade organization launched its Foreclosure Prevention and Response (FPR) Program as part of the association’s more comprehensive Right Tools, Right Now program.  The FPR program is designed to assist communities in facing the challenges of the current marketplace and specifically the continuing increase in foreclosures and short sales.  Specifically, the NAR has provided grants to help state and local real estate agencies develop coordinated plans of action to prevent foreclosures and respond to the adverse market conditions.

 

The NAR has also launched a web site featuring educational information and resources as well as listing government, state and private grant programs.  The NAR goes further in describing the best practices for foreclosure prevention and response.

 

The NAR’s funds have been allocated by state and are based upon membership levels in that state.  Local associations needing additional assistance can apply for more help through their state association. 

 

The NAR encourages persons facing foreclosure to enlist the help of real estate professionals who will help design action plans to address the many challenges of foreclosure.  The group does not recommend inaction.  Property owners who remain engaged in the process have an excellent chance of forestalling foreclosure proceedings.

 

Successful strategies often involve requesting grants from the government.  Many realtors are experienced in assisting the development of these grant requests.  Realtors can also assist with applications for private funding. 

 

As the NAR suggests, the dramatic increase in short sales has forced real estate agents to learn much about the procedures.  Property owners can benefit from short sales and should contact experienced agents to assist with the process.

 

The NAR has provided funding for training of real estate agents who wish to learn more about the foreclosure and short sale marketplace.  For the typical property owner, the most difficult step is often facing the le3nder.  Let a professional step in and help.  Often times an experienced third-party representative can more easily accomplish the desired outcome.  If you face foreclosure, do not wait.  Time is against you.  Call a trusted real estate agent today. 

 

 

The real estate investor’s ability to bring the pieces of the short sale puzzle together can create big profits and windfalls for real estate balance sheets.  What investors are finding out is that short sales work.  In the midst of the world’s deepest recession and with more than 1,000,000 American homeowners suffering foreclosure in 2008, mortgage holders have changed their stance on previously unwelcome short sales.

The new climate is wide open for short sale acquisitions.  Banks have come to realize that foreclosure is the resolution of last resort.  The cost of maintaining foreclosed properties in a down market loaded with excessive supply and dwindling demand has led banks to negotiate with qualified investors.

These investors can reap big profits by buying low and turning properties over in a relatively short time or by renting the properties until market conditions improve.  The possibilities for profit are many.

The key to a successful short sale is to bring the vested parties together.  With more and more homeowners with secured debt exceeding the value of the property and with rising unemployment placing more and more Americans in default, short sale opportunities are abundant.

Banks are allowing these “underwater” homeowners more flexibility than ever before.  Today, banks are allowing short sales, often accepting less than they are owed in order to avoid ongoing maintenance.  The investor who works with the mortgage holder will usually find a ready, willing and able lender.

Meanwhile, the owner avoids foreclosure and is generally forgiven for the remaining indebtedness.  The homeowner’s credit may suffer but the damage is less than would result from foreclosure.  With the unemployment uncertainty plaguing the nation, short sales are often the lesser of necessary problems and can often provide win-win-win scenarios.