Recently, I have been researching the estimated cost of an average foreclosure. Estimates range from $50,000 to $80,000 and account for losses to lenders, homeowners, local government (in property taxes), and neighbors (reduced property values). None of the estimates account for losses to real estate agents and other professionals in our industry. Yet, we are often the ones to suffer the most pain in our pocketbooks.

If it's true that we have much to lose when housing bubbles burst, we also have much to gain in a thriving market. Because of this, we need to do everything we can to help stabilize our markets by helping homeowners avoid foreclosure and remain in their homes. Here are several things you can do to help stabilize your housing market:

Brush up on foreclosure rules and regulations in your state. Become the go-to guy or gal on foreclosures in your area, so you can educate homeowners on their rights and the timelines they are facing. (Don't offer legal advice, unless you are a licensed attorney, but you can let people know their options.)

Train yourself on short sales and short re-financing. Lenders are often more willing to negotiate short sales with real estate professionals who know property values in the area than with homeowners. In addition, homeowners often have no idea of where to start with a short sale or short re-fi. You may be able to charge the homeowners a fee for your services in addition to earning a commission from the listing.

Get connected with a reputable loan officer who is willing to work with distressed homeowners to identify any refinancing options.

Connect with attorneys in your area who specialize in foreclosures, bankruptcy, and loan modification. Create your own mini-referral network. Depending on the regulations in your area, you may even be able to pay one another referral fees.

Connect with other professionals in your area, too, including mortgage brokers and credit counselors.

Consider hosting foreclosure self-defense workshops or seminars in your area. You can team up with other professionals in your area to deliver workshops or seminars that lay out all the homeowners' options and help them decide which option(s) are most viable and desirable for them. When the homeowners choose an option to pursue, they are most likely to hire you or another one of the professionals you have teamed up with to serve their needs.

Tip: If you host a foreclosure seminar or workshop, offer it to everyone in the community who is facing foreclosure or knows someone who's having trouble making their house payments. Many homeowners are embarrassed by their situation, even when they are suffering through no fault of their own. If they can save face by saying they are attending because someone they know is facing foreclosure, you can attract more participants.

Working to stabilize your housing market can often seem like a thankless job, particularly if you see other professionals in your area apparently benefiting more from your efforts than you do. These lean times will or have already weeded-out the part-time real estate agents, leaving you and other dedicated professionals like you to deliver practical solutions to ailing homeowners.

Keep in mind that helping homeowners stay in their homes can slow and eventually stop the domino effect we often witness in areas with rampant foreclosures. Only after we put a halt to the epidemic, can we hope to see signs of recovery – increasing demand, rising property values, and a return to healthier and more predictable commissions.

Published: March 9, 2009

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Ralph R. Roberts, CRS, GRI is an award-winning and internationally recognized real estate agent, author, coach, and speaker. Throughout his career, Ralph has proven his commitment to helping other real estate and sales professionals build upon their past and present success, grow and expand their businesses, and provide a rich and rewarding future for themselves, their customers, their employees, and their families. As president and CEO of Ralph Roberts Realty, Ralph has personally helped thousands of consumers realize their dream of homeownership. While selling over 10,000 homes (and buying and selling over 3,000 investment properties) throughout his 30-year career, Ralph has made the time to mentor and coach hundreds of professionals in real estate, sales, and a host of other fields. Ralph is a recognized authority on Real Estate and Mortgage Fraud; Residential Real Estate; Personal Salesmanship; Sales Force and Office Management, Motivation, Design, and Team Building; and Foreclosure Self-Defense and Loan Modification, fields in which he has demonstrated his commitment to preserving the American Dream of Homeownership. Ralph's numerous websites, blogs, seminars, and speaking engagements engage, entertain, and educate both consumers and professionals. Ralph is also an accomplished author with several successful titles to his credit, including: Power Teams: The Complete Guide to Building and Managing a Winning Real Estate Agent Team Financing Real Estate Investments For Dummies (John Wiley & Sons) Mortgage Myths: 77 Secrets That Will Save You Thousands on Home Financing (John Wiley & Sons) Foreclosure Self-Defense For Dummies (John Wiley & Sons) Protect Yourself from Real Estate and Mortgage Fraud: Preserving the American Dream of Homeownership (Kaplan) Foreclosure Investing For Dummies (John Wiley & Sons) Foreclosure Myths: 77 Secrets to Saving Thousands on Distressed Properties (John Wiley & Sons) Advanced Selling For Dummies (John Wiley & Sons) Flipping Houses For Dummies 52 Weeks of Sales Success (John Wiley & Sons) Walk Like a Giant, Sell Like a Madman (John Wiley & Sons) Cross-Cultural Selling For Dummies (John Wiley & Sons) To learn more about Ralph, visit AboutRalph.com, check out his daily insights on real estate and mortgage fraud prevention at FlippingFrenzy.com, or visit his latest blog dedicated to helping distressed homeowners fight foreclosure, KeepMyHouse.com. You can reach Ralph at or by calling (586) 751-0000.