Foreclosure H.E.L.P.
Homeowner Equity Loss Protection
Auction Solutions International is a full service real estate auction company founded on the belief that every client is entitled to an exemplary level of auction service provided by professionals with a high degree of personal and professional integrity. Service is at the center of our business philosophy and the level of commitment provided to clients is second to none.
We are dedicated to settling loan default and pre-foreclosure issues in a timely manner that provides a successful resolution for all parties. Significant crises often lead people into mortgage default; statistics show that once borrowers reach a point where they have missed three months of payments it is almost impossible to catch up. At that point they often face foreclosure, which means losing their home, the equity in it, and possibly filing bankruptcy. Historically many borrowers in this situation avoid their lender and try to dispose of the property through the traditional method of a privately negotiated sale. Because buyers may not be readily available and there is no urgency in the market, this attempt at a sale is often unproductive, leading them further into foreclosure and the eventual loss of the property. At Auction Solutions International we work with your lender to establish a timeline and develop a pool of qualified buyers. An urgency is created in the market through the establishment of a definite sale date, and interested parties know that they must be prepared to buy on auction day or they will miss the opportunity to purchase the property.
Advantages of H.E.L.P.
- Gives borrowers an additional option
- Allows borrowers to minimize their losses
- Reduces bankruptcies
- Offers a time-definite sale
- Offers lenders an additional option
- Decreases losses for the lender
| Traditional Sales Method | Auction Solutions International Method | |
|---|---|---|
| Valuation | Broker estimate | True market value |
| Marketing | One ad among many | Focused plan with budget equal to 1-3% of value |
| Sales Plan | Waits for buyers to emerge | Complete marketing and sale in 30 – 45 days |
| Sales Strategy | Negotiation | Open, competitive bidding |
| Risk Management | Price reductions | Net price guaranteed |
| Contract | Contingencies permitted | No contingencies |
| Holding Costs | Continue to mount indefinitely | Minimized due to brief marketing sales time |
Industry statistics show that it costs lenders between $30,000 and $50,000 to foreclose and dispose of a residential property. Banks also receive demerits from banking regulators for having non-performing assets (delinquent mortgages) on their books. It is in the best interests of the lender to work with the borrower to try to resolve default and foreclosure issues in a timely and efficient manner.
Foreclosure is a difficult process for everyone involved, yet it can be managed in a way that allows all parties to minimize their losses and to begin looking toward a brighter future.