I started my real estate career focused on, and marketing to, real estate investors.  It began with apartment homes, but later turned to single family homes.  Five years later, I’m still working with investors, and renting more and more homes for folks as my property management business continues to steadily grow.  This week, however, as I was prospecting for new tenants for a couple of homes I have for rent down in Laveen, I ran into the exact same situation twice:

• Tenant prospects have a good job, and currently live in the area.
• Tenant prospects live in a home they currently own.
• Tenant prospects underwent a job change that caused them to fall behind on their mortgage.
• Tenant prospect’s mortgages have recently adjusted to nearly double their original loan payments.
• Tenant prospects have tried to work it out with their banks, but the banks are unwilling to be flexible with anything, and are their homes are now in foreclosure.
• Thus, they are tenant prospects.

The last bit of stunning news, was that each prospect had said they had met with a previous REALTOR, and that REALTOR’s advice was that it would be hopeless to try to sell their home, so don’t bother.  It’s NOT hopeless.  It’s not 100% likely…but it’s not 100% unlikely either.  At worst, I give it a 25% chance of success, and odds improve dramatically based on various conditions.  It is, however, a 100% guarantee that you will be foreclosed on, if you never list your home for sale.

Hearing the exact same story for the second time today (and the first time on Sunday) was eery and sad at the same time.

I can’t promise a miracle, but for both prospects I asked them to let me try to sell their homes via short sale, and they said yes.  As it stands, I’m working with 2 different investment groups that are making offers to buy anything they can find in a distressed situation.  The investment groups know their scenario for success, and if they can get the deal they want from the bank, they will always buy.  At worst, they won’t reach an agreement with the bank, but at best, one of the investment groups steps in and saves them from a foreclosure.  Plus, my normal marketing plan goes into affect, so we aren’t limited to just these 2 investment groups.  It’s a can’t lose worse scenario, except you can’t win, if you don’t play.

Finally, if your Phoenix home is nearing foreclosure we need at least 2 months to have the most reasonable chance of success.  If you’ve been notified that an auction date is set, and your home is not listed for sale, it’s time to call a REALTOR.  Hopefully that’s me, but if it isn’t me, please call someone.

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