Q) Why are there so many foreclosures?
A) First, it is critical to back up and underscore that a foreclosure filing does not automatically mean a foreclosure is completed. In most cases, homeowners are able to address the delinquency, refinance or work out a plan with their lender, or sell the house before the entire foreclosure process is completed.
In terms of the current market – while foreclosures are unquestionably up in certain markets of the U.S., it’s important to place the situation into perspective.
• There are 74 million homeowners in United States according to the US Census.
• According to leading foreclosure watchdog group RealtyTrac, foreclosure filings were reported on just over 1.2 million properties nationwide in 2007. Even if this number were to double in 2008, the impact nationally on the real estate market would still be minimal.
• The 2007 RealtyTrac Year End report shows that only 1.03 percent of all U.S. households were in some stage of foreclosure during the year.
Home ownership rates have increased dramatically. Even according to conservative estimates, just under 70 percent of Americans own their home, a significant increase from 10-15 years ago.

Q) What should current homeowners do in order to avoid foreclosure?
A) The vast majority of homeowners should not be worrying about foreclosure. The current intense media focus on the lending industry and housing market has made the issue seem much larger than it truly is. There may be some homeowners who are concerned they are not keeping up with their payments, and the U.S. Department of Housing and Urban Development offers tips for avoiding foreclosure on their Web site. Most good mortgage lenders want to help borrowers through difficult financial times, and work closely with their customers to establish payment plans or other alternatives.

Q) Why does Coldwell Banker Plantation Realty have a foreclosure division?

A) A real estate agent can help you balance the potential rewards and risks when considering purchasing a foreclosed property. Agents understand both the properties and the process, and have the contacts and experience that can make it more profitable for the investor.
Banks looking to sell foreclosed property are not first and foremost in the real estate business – they are not oriented around providing potential buyers with a guiding hand throughout the process. So buying direct from a lender can be complicated. While a consumer may think that a foreclosed property will be “cheaper,” they may not realize the possible complications of purchasing a foreclosure property. Existing tenants may need to be moved out and those leaving a foreclosed property sometimes strip it of doorknobs, faucets, molding, wiring and other valuable materials. These are the kinds of issues that a trained professional can help anticipate and handle.

Ultimately, realtors are committed to those who want to buy or sell properties, no matter what type of property it may be. And foreclosed properties are no exception.