Thousands of homeowners face foreclosure every year. They risk losing their homes and any savings they've built up.
Many people work diligently to help homeowners avoid it whenever possible. Foreclosure specialists help families in the foreclosure process. Sometimes, they also work on behalf of the buyer looking to purchase a foreclosed property.
If you're interested in helping people manage this process, becoming a foreclosure specialist may be the right job for you. Continue reading to learn more about what it is and how you can start your foreclosure specialist career.
What Are Foreclosure Specialist Jobs?
A real estate foreclosure happens when a property owner defaults on a loan. The bank or lending institution then takes the property back and attempts to sell the house to get their money back.
A foreclosure specialist understands the foreclosure process and all of the laws related to it. They can help monitor and manage real estate foreclosures. They make sure all federal, state, and local regulations are adhered to in the process.
Foreclosed homes are often damaged or heavily neglected. Foreclosure specialists learn how to evaluate a property’s value to market it properly and sell it quickly.
A foreclosure specialist salary tends to fall in the $42,000 to $57,000 range. Variations occur depending on which aspect of the foreclosure industry you focus on and, of course, what city you work in.
What Does a Foreclosure Specialist Do?
A foreclosure specialist helps homeowners who are at risk of defaulting on their mortgage. They know all of the options that may be available to homeowners and help them through the process.
When possible, they try to help homeowners stay in their homes. They will determine if there is a way to restructure the loan and negotiate changes to the loan to avoid foreclosure.
When a foreclosure can’t be avoided, they help homeowners go through the process. They prepare the documents, such as obtaining title records, inspection reports, and appraisals.
They manage the deadline schedule and make sure it’s communicated to everyone involved. The entire process includes lenders, attorneys, courts, inspectors, and insurance companies. Having one source communicating the schedule and keeping everyone moving forward is important.
The foreclosure specialist manages all of the verifications that need to happen. There is a lot of paperwork that needs to be signed and delivered to the proper departments.
They need to be knowledgeable about banking industry rules. In addition, they should know the local and state government regulations. The more prior experience they have in legal proceedings, the better.
How to Become a Foreclosure Specialist
Most foreclosure specialists have a background in real estate. They may also have a few years of experience in banking and lending administration or the legal industry.
Many positions require an associate’s degree at a minimum. Most specialists have a bachelor’s degree with majors in finance, legal, or real estate-related subjects. Experience through an internship or job in bankruptcy and mortgage financing is precious.
Most specialists have good communication skills and strong attention to detail. Proficiency with computers is important. Being able to multi-task and having good problem-solving skills is also beneficial.
People going through foreclosure are often in a distressing financial situation. Having patience is imperative for a financial specialist. A calm demeanor and positive attitude are also necessary.
Education and Training Courses
The first step in the process is getting the proper licenses and certifications to be a real estate agent. This process usually includes several weeks of courses and an exam to receive a license.
After becoming a real estate agent, if you want to specialize in foreclosures, you begin another round of courses and certifications.
While there is no official organization to oversee foreclosure agents, there are many specialized courses. Training courses often come from private companies that focus on real estate careers.
Specialized courses cover a variety of legal and financial topics. Classes may cover topics like:
- what happens in the pre-foreclosure
- government help available
- financing options for buying foreclosures
Some classes focus on marketing skills and client relationships.
The courses can take place online or in a traditional classroom setting. Many courses will offer an exam and certification. These certifications show clients they have the experience and skills to work with foreclosures.
Become HUD-Approved
Another way to certify your standing as a foreclosure specialist is to be approved by the HUD. The U.S. Department of Housing and Urban Development (HUD) offers one of the best ways to become a foreclosure specialist. Partnering with them is also a great way to gain new clients.
HUD supports mortgages through the Federal Housing Administration (FHA) and Veterans Administration (VA). When someone defaults on a HUD loan, HUD takes over the house and tries to resell it. Any agents who want to sell HUD homes need to register and get approved first.
Once HUD has approved someone, they issue an identification number. The agent can then use this number in advertisements and marketing to indicate that they are HUD-approved. They can submit offers on HUD home.
Begin A New Career
The rules around foreclosures are stringent. The process is very tedious and time-consuming with many different deadlines. A foreclosure specialist needs to understand all of these procedures and the financing options available for foreclosures.
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