Short Sale Leads Are Easy to Locate
I came across an old colleague the other day, a top producer in her day, who is now semi-retired. We exchanged small talk and she grumbled about the current state of the real estate market. “I wish things would return to normal,” she griped. “I cannot seem to convert any leads.”
After we exchanged pleasantries and we each went on our merry way, I began to think more about her comment. What is normal in real estate these days? The way that my colleague generated and converted leads five or ten years ago is completely different from the way that we do so now. Short sale and foreclosure leads are part of this new normal.
My former colleague, like many real estate practitioners, apparently is finding challenges adapting to the way in which we conduct business right now. Leads, short sale leads, are around each and every corner. Working with these short sale clients is a great way to generate business and get your signs out there when our nation is in a recession. The news is filled with information about the perils of our economy. If your sign is everywhere in town, that might be a great way to send a message that you are still in the real estate business and that you are successful.
So, how do you find these short sale leads?
One way to amass short sale leads is to obtain a list of anyone who owns a property that has begun the foreclosure process. In my community, I can obtain this information through my MLS. This information can also be purchased from a number of recognized and respected websites. Anyone who has begun the foreclosure process and whose home is not already listed for sale may need the support of a qualified Realtor®. (By the way, when I say qualified Realtor®, I’m talking to you).
Another way to obtain short sale leads might be to identify a community where the market has declined. In my neck of the woods, many of the newer developments have seen a significant decrease in market value from 2003 to present. So, any homeowner in these communities who did not make a large down payment may owe more than there home is worth and may be in need of a short sale advisor.
According to Credit Suisse, the largest subprime mortgage product sold was a 5/1 ARM that was sold in 2005. Well, we have just entered the final quarter of 2010—that fifth year—and many of these loans are adjusting from Interest-Only to 30-year fully amortized. Even though rates are still low, the change from interest-only to fully-amortized has caused mortgage payments to increase. In some cases, borrowers may not be able to afford these payments.
These types of borrowers described here are folks who need your help right now. And, with our national unemployment rate above 9%, I’m sorry to say that a number of folks need your help immediately.
Oh, but I think you were the one who told me that you hate short sales and cannot wait until things return to normal, right? That’s okay, more leads for me.