Funny how some people saw this coming and others didn't. In 2004 I couldn't hold back my concerns about today's real estate market. I didn't know how bad the numbers would be or when it was going to happen, but you can ask all those who knew me then and know me now...they would say, "He saw this coming. It was all he talked about."

I had no crystal ball or any type of time machine. What I had was experience. I experienced the foreclosure market of the 90's and I am very happy that experience gave me a gut feeling before the turn of the next cycle.

So what did I do to prepare? Since I am in the real estate and mortgage business, from 2004 to 2007 I took classes and attended seminars about foreclosures, short sales, and loan modification. I did a lot of research and development. I am very happy I did. I am able to help people in foreclosure and still stay in the business.

I start off by reviewing the possibilities of a loan modification. If the homeower is able to modify their current mortgage, then I begin the process and only charge the client after I have the agreement from their lender on their new rate & terms.

Another option besides loan modification is a fore bearance. This is when the amount that is due (3 to 4 months of payments) is divided by 6 months and added on top of the regular payment. However it is not a great option because it causes the homeowner's monthly payment to increase.

Their amount of equity (if any) helps determine whether a loan modification or a fore bearance would be a good option.

If they do not have any equity my professional suggestion would be to sell the property. Not every homeowner likes that option, but in reality it's the best option. I call it a "New Start".

If the homeowner owes more than the current value of the home, then it makes more sense to begin a short sale process. There have been a lot of those popping up lately.

I explain to the homeowner that prices will continue to drop and in the near future homes will be affordable again. If a homeowner prepares to avoid a foreclosure or adding more mortgage lates on their credit report, it will help that homeowner buy an affordable home in the near future.

I wish this was not true, but I believe this foreclosure market will be here to stay for a while. If you are not prepared for it...you should start preparing now.

I also offer business consultation for brokers, real estate agents, and loan agents. I direct them where to get the knowledge for foreclosures and short sales, where to get the contact information for people in foreclosure, how to approach them, and what to offer them.

2008 has started off great for me because I believe that I as a professional real estate and loan agent can make a difference by spending my time to help the foreclosure victims in need.

Rick Izquieta
rick@izquieta.com