Foreclosures: The Bigger Picture

The nation’s foreclosure crisis is quickly escalating, and believe it or not, this puts entire communities at risk.

In the third quarter of 2007, there were 635,000 foreclosure filings, a 30 percent increase from the previous quarter and nearly double from a year ago, according to RealtyTrac, a national real estate information service. That works out to one foreclosure for every 196 households. Those statistics are staggering!!

We saw Colorado, Georgia and Texas suffer pretty hard foreclosure blows last year and this year the foreclosure rates are soaring in California, Nevada, Arizona and Florida. What’s the cause of all this mess? You guessed it – overly aggressive lending leading to unsustainable mortgages.

Because of these startling statistics, the market is in dire need of people who are willing to step up and help these people out of such unfortunate circumstances. As a real estate investor you have the power to do this. You have the power to make a difference and perhaps completely change someone’s life for the better.

You’ve most likely heard me discuss my strategies for helping people who are at risk of facing foreclosure stay in their home. These amazing techniques allow you to reach out to people who may have been taken advantage of during the recent lending spree.

Above and beyond individual loss, foreclosures can cause damage to an entire neighborhood and economic base. You may not know this, but foreclosed properties damage the value of surrounding homes and the tax bases of municipalities. There are also strong ties between foreclosures and crime. A recent study showed that for every one percentage point increase in a neighborhood’s foreclosure rate, violent crime rises 2.3 percent. To some of you this might not make sense, but think about it. When property vacancies appear; so do looters, vagrants, prostitutes, and drug dealers. In smaller cities it might start with vandalism and minor gang activity, but eventually heavy crime will creep in. What’s even more frightening is that down the line if crime did invade your community, your local Police department may not be able to keep up, in part because foreclosures have the potential to really strain municipal budgets. You could play an integral part in helping prevent the rise of crime rates in YOUR community now! It’s better to play a preventative role rather than trying

Now I’m not trying to scare the pants off you. But I just wanted to show you that there really is a bigger picture to be seen. I wanted to open your eyes to the fact that if you can help these homeowners stay in their home and maintain residency, you could very well be part of a solution to an even bigger problem looming about.

We have just started a brand new year, and what better time to get started on the right foot by getting out there and making a difference. The holidays have certainly taken an additional financial strain on many homeowners and they will be wondering where to turn for help. Let them know you are there, that you can offer them assistance and help them stay in their home.

The amount of satisfaction you feel from doing work like this is unmatched. It is work – but that’s okay – you will be getting paid handsomely for what you do for these people. You will be changing people’s lives and making a great deal of money – can you think of a better job? I sure can’t! So get out there and get busy finding people who are facing foreclosure and together we can make a big difference.

For those of you reading this who may not yet be familiar with the strategies I’ve been discussing, contact my office at 1-800-558-6092 and we’ll be happy to provide you with further information.