There’s no getting around the fact that we’re going to see some serious upheaval in the real estate market this year. There are 10.1 million people in default of their mortgages right now. Of course, not every one of these properties will go into forbearance, but for comparison’s sake, there were 2.9 million foreclosures in 2009. We’re going to see a lot of distressed properties eventually.
Nicole Espinosa does over 100 short sales a month across 14 markets, and she’s been 100% referral-only for 3 years. She’s earned the title of The Short Sale Queen. Real estate investors who often find properties with no equity refer these homeowners directly to Nicole. And real estate agents send the short sales that they don’t know how to deal with to her. She’s a problem solver. She joins me today to talk about how you can help distressed homeowners get themselves out of a jam.
Nicole’s business advocates for the seller and deals with their debt to help them, but she also works with investors to help get them a deal. On an FHA loan, a bank will go as low as 84% of a home’s price, but only as low as 90% on a conventional loan. The hard part is when a property is nice and the investors still want a discount. Nicole has to be the one to get real with the investor about what the bank will do.
If you’re wondering how to talk to distressed homeowners, Nicole suggests avoiding the hard sell. Educate homeowners on their options and earn their business. But of course, in order to educate them, you need to understand how a short sale works. Check out The Short Sale Queen on YouTube for an in depth look into how you can be a better transaction engineer when these houses hit the market.
Watch and Learn:
Listen and learn:
- How you can help out homeowners that are currently in default.
- The discount that real estate investors can get on a short sale, and how Nicole works that out with investors.
- Why can’t the banks just modify the loans and prevent forbearances?
- The best way to talk to homeowners who are under a great deal of stress and can’t handle a hard sell.
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