Saturday, August 23, 2008

My New Foreclosure Blog-what do you think?

By Lora Wilson

Click here for the most current foreclosure listings.

People often call me for information on how to get into the foreclosure market. Realtors want to know how to get a piece of the action, or what is on the market. Potential investor and home buyers call me to find out how to buy, and my teammates call to vent their frustrations - not their fault, it is a frustrating business these days. Read more and find out why.

After 6 years of selling Vermont foreclosures, I can say that the business has changed dramatically in the last 8 months. When I started selling foreclosures six years ago, I had 10 in my inventory. They were all over the state and there were a few clients, Freddie Mac, Litton loans, and Ocwen. Now in this market, we have about 34 foreclosures, about 22 different clients and there is a sense of chaos about the industry.

For a short time during the height of the mortgage boom, I had clients that were out-of-state investor groups who were buying foreclosures in bulk throughout the country. It was a very confusing, title-riddled mess. I think they are all broke now, and I don't see too many of those venture capitalists getting involved these days. These properties were almost impossible to close because there was not a proper chain of title. This was the first dimension of chaos that I noticed.

Now, I see an industry in complete crisis. My clients, (banks selling foreclosures,) are losing money on just about every transaction. Clients are disappearing- going out of business and are over-burdened with their inventory of properties. Their efforts to consolidate and decrease their losses have led to a grid lock in the process. It is terribly time consuming to negotiate, obtain addenda, receive signed contracts, address title issues, and receive deeds and closing docs. In an effort to save money, banks are using servicers out of the country, Attorneys from out-of-state for FC and out-of-state title companies. Commissions are going down, referral fees are going up, and while the foreclosure pie is enormous, the ability to make money is seriously impeded. If anyone has ideas as to how service foreclosures and make money, please respond to the blog entry. Since it is a business that is losing money in the billions, it seems hard to turn a profit.

Also, if you are one of the many people facing foreclosure, contact me, because I can help. There are many ways to avoid foreclosure if you are willing to do the right things. I can help to sell your home, even if it is not worth what you owe. If you are a Vermonter, who needs help, Call me 800-637-6341 x 2101.

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