The Values of the REALTORS® Code of Ethics

The advice of a qualified, skilled, and professional REALTOR® can be extremely helpful during such tough times. The process of going through a foreclosure can be challenging and emotionally taxing for homeowners. REALTORS can help!

REALTORS® can play a crucial part in aiding homeowners through the pre-foreclosure process and guiding them through the complexity of foreclosure prevention by upholding the ideals expressed in the Preamble to the Realtor Code of Conduct.

The Importance of Upholding the REALTOR® Code of Ethics in Pre-Foreclosure

As stated in the Preamble, REALTORS® are committed to upholding the highest levels of professionalism and acting in the public’s, as well as their clients’ and customers’, best interests. This dedication is especially important when helping homeowners who are facing foreclosure. In pre-foreclosure situations, REALTORS® are guided by several important Preamble principles, including:

Real estate professionals work to encourage the wise use of property and the broadest possible distribution of land ownership because they understand the crucial role that it plays in our society. REALTORS® support homeownership preservation, community stability, and a thriving economy by assisting homeowners avoid foreclosure.

REALTORS® are aware that their work goes beyond simple business transactions since they have a social duty and patriotic obligation to assist homeowners in need. They approach the prevention of foreclosures with a sense of responsibility to the welfare of the country and its people.

Always Pursuing Knowledge and Experience

REALTORS® are dedicated to staying current on topics affecting real estate and are willing to impart their knowledge and experience to others. REALTORS® may give homeowners accurate and timely advice by remaining current on foreclosure laws, procedures, and resources.

Encouraging Collaboration and Upholding Professional Standards

The Preamble places a strong emphasis on the value of cooperating with other real estate professionals and upholding the highest levels of professionalism. In order to help homeowners traverse the pre-foreclosure process, REALTORS® can make use of their network and resources to put them in touch with the right professionals and services, such as HUD-approved housing counselors or mortgage lenders.

How REALTORS® Can Assist Homeowners in Pre-Foreclosure Situations

By incorporating the values of the Preamble, REALTORS® can provide invaluable support to homeowners facing foreclosure. Some of the ways REALTORS® can assist homeowners in pre-foreclosure situations include:

Understanding the Homeowner’s Financial Situation

REALTORS® take the time to thoroughly understand the homeowner’s current financial situation and explore potential solutions. By considering factors such as the homeowner’s income, outstanding debts, and future financial prospects, REALTORS® can provide tailored advice and guidance.

Explaining Available Options

REALTORS® help homeowners understand the various options available to prevent foreclosure, such as loan modifications, forbearance agreements, refinancing, short sales, or deeds in lieu of foreclosure. By clearly outlining the pros and cons of each option, REALTORS® empower homeowners to make informed decisions.

Negotiating with Lenders

REALTORS® can work with homeowners to negotiate with their mortgage lender, helping to secure more favorable terms or payment arrangements. This may involve submitting documentation, drafting hardship letters, or advocating for the homeowner’s best interests.

Assisting with Short Sales

If a short sale is the best option for the homeowner, REALTORS® can guide them through the process, from pricing the property and marketing it to potential buyers, to negotiating with the lender and facilitating the closing process.

Providing Moral Support and Encouragement

Facing foreclosure can be an emotionally challenging experience. REALTORS® recognize the importance of providing not only professional guidance but also emotional support as professionals they have been through the process before.