Daily Real Estate News  |  November 14, 2007  |   Foreclosures Offer Big Business Opportunities
Real estate practitioners can find business opportunities in the foreclosure market by finding properties for their buyer clients, says Edward A. Bugos, ABRŪ, a listing agent who specializes in foreclosures in Cleveland. But before jumping into the foreclosure arena, real estate pros need to learn about the foreclosure process and related state laws, Bugos cautions. Bugos spoke at the 2007 NAR Conference & Expo, which takes place in Las Vegas Nov. 12-16.

Nationwide, foreclosures are climbing dramatically. In the first half of this year, 925,986 foreclosures were filed, a 55 percent increase from the first half of 2006, according to RealtyTrac.

While foreclosures are on the rise, the foreclosure market is not for everybody, Bugos says.

“You have to have the stomach for it because you’ll see the good, the bad, and the ugly” when selling foreclosures, he says.

Indeed, it’s important to prepare your buyers for what to expect when viewing a foreclosed property being sold “as-is.” For example, the property may be severely damaged structurally and missing appliances, wiring, and even electricity. In some cases, the property may even need to have the home owner evicted.

In assisting buyers interested in a foreclosed property, Bugos says practitioners need to be familiar with their state’s related laws, such as regarding liens against a property and redemption periods. A state’s redemption period is the time when a defaulted home owner has the opportunity to recover a property after the foreclosure process begins. In some states, the redemption period can stretch up to one year –critical information for a buyer wanting to purchase a property.

One place to gather such state-specific information–foreclosure attorneys practicing in your state. Many have Web sites about what’s happening in their areas.

Get familiar with the state’s timelines in the stages of foreclosure and prepare buyers. “Buyers need to be patient because they may have to wait out months of delay,” Bugos says.

— REALTORŪ Magazine Online

The 2007 REALTORSŪ Conference & Expo is Nov. 13-16 at the Venetian Resort Hotel & Casino in Las Vegas. The meeting, with some 30,000 attendees, features more than 200 conference sessions and 744 exhibitors.