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.

Keeping Safe During Showings

All agents need to consider their safety during showings, especially with the rise of vacant and foreclosed homes. The market is rife with short sales and foreclosures, and there's good business to be had there. But getting that business may entail showing vacant homes to strange men in bad neighborhoods. Crimes against Realtors are not unheard of and have actually become more frequent. Take bold steps to be safe.

1. Stand on the curb outside and wait for a prospective buyer to arrive. Keep your cell phone in your hand and call your office receptionist. Speak loudly enough to be heard by the client and tell your receptionist or coworker where you are and who you are meeting. Be sure to give the clients name, the address of the showing and a description of the car. It may annoy the client, but simply explain that this is company policy. Having heard this information given to a third party, the client is less likely to become an assailant.

2. Create a system with your office using code words. A good system is the "file system". If you feel at risk during a showing, call your receptionist and ask them to pull the "red file" on the address you are showing. The term "red file" will be a code for "Call the Police".


3. Never show a house when the office is closed. If you do, you lose part of your protection. Also, avoid showings at night.

4. Follow your intuition. If you feel very uncomfortable, don't go in the house. Open the door and step aside to let the client in. Tell them if they have any questions to come outside and speak with you. The point is to stay in public where the possibility of witnesses will deter an attack.

As foreclosures continue to swell in the market and agents find themselves showing vacant homes, we want to know YOUR methods for assuring your own safety or that of your agents during these showings. Please share your strategies with your fellow agents and let us know your best method for avoiding danger.