Distressed Properties - Our Business for the Next Three Years

While there are plenty of optimistic signs in the market and in the media, the storm engulfing the housing market is not over. The recession may be bottoming out, but housing expert and RE/MAX Chairman of the Board Dave Liniger is cautioning the industry to be prepared. Distressed Properties will be a significant part of our business for the next two to three years. How can Realtors get ready for another wave of foreclosures and short sales? Statistics that prove why having the CDPE (Certified Distressed Property Expert) Designation will only become more important to the of careers real estate professionals, and will arm them with the knowledge and resources to help clients during one of their most financially (and emotionally) trying times.

• There are currently 300,000 + monthly foreclosures in the U.S.
• There is another huge wave hiding; will get worse before getting better
• 5-7 Year ARMs will fail at a higher rate than even Sub-Prime loans
• Banks have been holding back on foreclosures at US Gov’t request, but are about to release them
• 1/3 of all US mortgages are in a negative equity position as of June 30, 2009, says industry analyst First American CoreLogic.
• Foreclosures should peak around Sept, 2011
• There is a severe lack of financing for higher end homes
• Highly likely that the $8,000 first-time-buyer Tax Credit will be extended

• 68% of all renegotiated mortgages go back into foreclosure
• Lender saves 20% of the loss by doing a SS versus a foreclosure
• 70% of all foreclosures never even talked to their Lender
• RE/MAX International being consulted by Congress, Federal Reserve, U.S.
• Treasury Dept about how to handle the flood of inventory and failing mortgages.

We can't stop the storm, but we can help others ride it out the best we can. Get educated today on how to help your clients through short sales and foreclosures and be prepared for what will continue to be a dominant facet of the industry for the foreseeable future. Find out about the CDPE designation today.