by Joshua Talayka

Created on: August 06, 2008   Last Updated: September 13, 2011

Our jobs go beyond helping people buy and sell homes. It doesn't make sense to help a person purchase a home that will eventually end in foreclosure. Which is why it's also our job to help homeowners and future home buyers avoid facing foreclosure, or a mortgage payment they just can't afford. By educating yourself and your clients about the risks and benefits of different loan programs, you will be able to help guide them in their financial decisions. Granted, by know means should you present yourself as a mortgage professional. However, with more and more mortgage professionals struggling to make a living in today's market, you may find that your clients aren't being made aware of all the risks involved, and all the different loans available.

Many of the factors that have created the declining market we are currently experiencing is due to many subprime loans. However, this doesn't mean that every subprime loan is bad. I personally believe that every loan is a good loan, for the right person. For those who can't qualify under conventional standards, subprime products are a great alternative for people trying to own a home. However, when buyers aren't made aware or don't fully understand all the terms of their agreement, they may find themselves in a devastating foreclosure down the road. If your clients are getting themselves into an ARM, make sure they understand how big of an increase they are looking at in their mortgage a few years down the road.

In order to thwart future foreclosures, we as Realtors can help future buyers avoid finding themselves in the same predicament. This can be accomplished by:

• Working with buyers to ensure they understand the terms of their mortgage and how it will effect them now, and in the future.

• Keeping up with what the government and non profits are doing to help borrowers facing foreclosure. May of these organizations have programs to help homeowners facing foreclosure.

• Understanding how your different lenders handle delinquent mortgages
Letting people in your community know about the different resources that are available to them

The NAR and some of its partners have put together a series of brochures as a valuable resource to help consumers avoid having to ever experience a foreclosure. You can find these brochures on their website, along with other helpful information. In addition, you can contact the local board of Realtors in your area with any questions.

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