Even in a busy real estate market—one with low supply and high demand—we still see short sales and foreclosures. Why is that? Because there is always someone that cannot afford to pay their mortgage and does not know (or perhaps, want) to do anything proactive to fix the problem. COVID hit the United States in March of 2020, and without all of that government support and lender cooperation (with forbearance programs), we probably would have seen an unprecedented number of short sales and foreclosures.
Almost two years later, our market is forever changed. With all of the pent up demand, houses are selling quicker than ever before. But what about people who signed up for loan forbearance at the beginning of the pandemic? Are they still doing ok? As an agent, it would be your job to seek these folks out. If a borrower signed up for loan forbearance at the beginning of the pandemic, he or she would need to complete the process of converting the temporary forbearance (set up online or over the phone) into a permanent forbearance, in which the lender adds a second lien on the property for the amount of the forbearance. If that step is not completed with the borrower signing additional loan documents, then at some point in the near future, the lender will be seeking a balloon payment—if the borrower has not been contacted already. This would be one group of borrowers that may need to participate in a short sale transaction. Or, if they are lucky, an equity sale before the lender forecloses.
Another group of people that may need the support of a real estate agent right now would be anyone who has not returned to work and has mortgage payments that they cannot make. There are lots in the news about people who have decided during the pandemic that their job was not a good fit or have left the workplace and may have challenges with housing. This is another group that could benefit from the advice and consultation of a real estate professional. Of course, the current limited supply has driven values up which means that people may be able to sell for a big profit. That is where you come in.
If you need the support of a team who understands the ins and outs of foreclosure and short sale, feel free to contact the pros at Short Sale Expeditor.