For the past two days I have attended a seminar on how to become a Certified Distressed Property Expert (CDPE). In short, this class and designation was designed to allow me to better assist my clients with selling their homes when they are looking at selling as a short-sale (when they owe more than the home is currently worth). While the class was definitely informative, was also very sobering with the statistics that are before us. Currently in the United States, one of every seven homes are behind on their mortgage payments. Statistics show us when someone starts down the slippery slope of missing payments, they often never recover and end up in foreclosure. The percentage that do recover and are able to complete a loan modification are minimal and unfortunately, most of them often end with foreclosure as well. What is really frustrating is seven out of ten (or seventy percent) of home owners go into foreclosure without visible intervention.
CHANGE IS HERE!
As an educated Certified Distressed Property Expert, I can help by first telling homeowners YOU HAVE OPTIONS!!! Foreclosure is not the only option that you are given.
First things first, you need to determine what you need to do. Here’s a quick list of some sample questions to consider:
1. Is this a home that is affordable in any way, shape or form? (If the mortgage payment was modified but the utility bills are still outrageous, that doesn’t help.)
2. Do you have a steady job?
3. Might you be able to do a loan modification or refinance? (careful here… you may spend $7,000 dollars to refinance and it only lowers your payments by $120. / month. That will take 58 months or nearly 5 years to recoup the fees, just to break even!)
4. Does the home have negative equity (owing more than the home is worth, if so how much)?
5. What does your total financial picture look like? (i.e. do you have a lot of debt that needs to be cleaned up?)
6. What do you want? (Really think about this one!!)
Most people are so used to being reactive at this point, they forget what they actually want. Some would like to keep their homes and others would like to just walk away and go live in a tiki hut on the Caribbean somewhere. However while we don’t always get what we want, I think it’s important to listen to that inner voice that tells us what we should or should not be doing. If it’s time to move on, listen to that… you have that voice for a reason.
If you are considering selling, it is important you work with an agent that is well versed with Short sales. Working with someone who is not familiar with them could end in a devastating result. Also, keep watching the blogs – I will put more information on as time goes on with things like “What is required to complete a short sale.”
Call me today if you are in the Minneapolis – Metro area, even if you just have questions. I am happy to help!
Bryan Sletten, CES, CDPE / 612-325-2489
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Working regularly with clients who are in this difficult situation, I can absolutely say that working with a CDPE is a must. Kudos to you for taking the time to get the education that will best serve the clients you are working with.
With amzing grace! Just fanciful! Your composition manner is admirable and the way you covered the topic with grace is notable. I’m intrigued, I assume you are an expert during this matter. I am subscribing for your upcoming updates from now on.
Nice idea. Anyway, a Short Sale in Minnesota (Short Sale MN) is a process were a Realtor or Lawyer works with a bank to sell a property for less than the current Mortgage amount and have the bank forgive the homeowner for the unpaid balance.
Yeah, I’m starting to see fuecrlosores being approved for Trustee sale come January. However, this does not necessarily mean they will be selling at that time.. just that the bank is hoping to sell the home at that time.A couple of things can change this date:- if you are in a short sale, the investor can approve a foreclosure extension if there is an offer on the home that looks like it will result in a sale.- If you are in a HAFA type short sale, the investor can have the Trustee sale delayed to allow for time for the home to sell.- Bank of America may not be done reviewing the fuecrlosores to make sure that they were done legally before the new Trustee date.Personally, I see the Trustee sale date change A LOT even on the day of the sale. So, even with a date set in January, there still might be time to avoid foreclosure.