Opportunity for Realtors in this current market?

[Tom Wood]

As the media continues to bombard us with all the news of the increasing foreclosures, it seems to me that there is an opportunity for Realtors to help. In cases where there is little or no equity, lenders have realized they would be much better off discounting the amount owed instead of taking the property back in foreclosure. Also known as a short sale.

I see an opportunity for Realtors to step into these situations and try an aggressive marketing strategy such as an auction. After getting contacted by a owner facing foreclosure, what if they would approach the lender, let them know how they are trying to help, their required commission and then ask for approval.

If the lender agrees, they could make their best efforts to advertise and get buyers bidding on the home. The winning bid would be subject to the lenders approval.

Once the auction is over, they take the winning bid (offer) to the lender and seek final approval. It would help the lender by getting rid of the property, would help save the homeowner from foreclosure and of course, the Realtor gets paid a commission.

Any thoughts or experiences on this approach?