Foreclosure May Not Be Your Only Option?
You May Have A Better Way Out!
Are you facing foreclosure? You are not alone.
There are countless hardships that can turn home ownership from a joy into a burden. There are many different reasons for someone to be unable to make their mortgage payment, and regardless of what yours may be, there is most likely a way to avoid foreclosure!
If you need help, there are approaches that can help, but you may not be familiar with them. As a Certified Distressed Property Expert (CDPE)Professional I understand the full range of solutions and I am ready to help. Whether your solution will keep you in your home, or allow you to sell your home in what is called a "short sale," my goal is to negotiate with your lender and help you avoid a credit-destroying and emotionally-damaging foreclosure.
Don't delay, the faster you act, the more options you will have! Foreclosure is like a clock running backwards - when you get to zero, you will lose your home! To review your options now, contact me for a free confidential discussion, or call my office at (404) 931-3416.
WHAT IS A CERTIFIED DISTRESSED PROPERTY EXPERT (CDPE)?
A CDPE is a licensed Realtor who has undertaken extensive training to learn about the issues distressed homeowners are dealing with. The CDPE professional is an agent who understands the full range of solutions available to a distressed homeowner, and who is ready to help. Selecting a realtor who is a CDPE ensures you are dealing with a specialist who is ready to address your needs.
Today, far less than 1% of Realtors nationwide have the CDPE training, skill and knowledge to successfully negotiate a short sale. In fact, as of April 2009, there were less than 4000 Realtors in the U.S. out of 1.1 million that had obtained the CDPE certification to enhance their ability to successfully negotiate and close a short sale. I am proud to say, “I have that skill. I am a Certified Distressed Property Expert – CDPE.”
REASONS TO AVOID FORECLOSURE
Sometimes, homeowners are so worn down by all the stress of a potential foreclosure, that they are almost paralyzed into inaction. It is crucial that everything possible be done to avoid foreclosure for these reasons:
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A foreclosure will need to be disclosed on any future mortgage application, and will effectively eliminate the possibility of a new mortgage.
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A foreclosure will lower the homeowner’s credit score by a minimum of 300 points and will affect many major purchases and rates for car insurance, credit card interest, etc.
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A foreclosure is the one credit report item that it is impossible to have “repaired”.
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Many employers run credit reports on prospective employees, and having a foreclosure on record may put a new position in jeopardy.
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Security clearances and government positions can be jeopardized by a foreclosure.
WHAT YOU CAN EXPECT FROM ME
My first task will be to help evaluate the situation and determine what is the best way to help the individual homeowner avoid foreclosure. I offer my services, at no cost to the homeowner, to try and resolve the situation with the lender so that the homeowner does not have to vacate the home. Together we will examine whether or not one of the alternatives to foreclosure is a possibility (i.e. re-instatement, loan modification, re-payment plan, etc.). If these efforts prove impossible, and the homeowner still has equity in the property, I will work towards a fast, conventional sale to beat out the foreclosure time clock. If there is no equity in the property, I will work to negotiate and expedite a short sale.
WHAT IS A SHORT SALE?
A short sale is a sale for a purchase price that is less than the total that is owed to the mortgage holder. A short sale typically occurs when a homeowner is forced to sell a property, whether to forestall foreclosure or due to mandatory relocation, and the market value of the property is less than the principal loan balance and any other liens on the property. A homeowner can find himself in this “short” position for a number of reasons: he may have gotten 100% financing when the market value of his property was high, and the subsequent decline in market value has left him “upside-down” with regards to his mortgage; he may have re-financed his home; or he may have taken out a home equity line of credit on top of an existing mortgage. Whatever the cause, the only way this homeowner can sell his house is if the current mortgage holder(s) accepts less than the balance owed.
WHAT IS THE CRITERIA FOR A SHORT SALE?
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A mortgage amount that is higher than the current value of the property
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Property is a primary residence (there are some exceptions for investors who meet the other criteria)
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Substantiation of the fact that the market value has depreciated
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Existence of a hardship to the homeowner. (Some examples of hardship are severe illness, loss of job, increase in mortgage payment, decrease in income, increase in taxes and/or insurance, etc.)
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Insolvency of homeowner (Insufficient income/assets to sustain monthly expenses)
WHAT EFFECT DOES A SHORT SALE HAVE ON A HOMEOWNER?
Since there is no equity in the property, the homeowner has no proceeds at closing. He may or may not have a deficiency judgment from the lender. He may or may not incur tax implications (and this is best discussed with a tax accountant). The homeowner will not be responsible for payment of a real estate commission, since that will be negotiated as paid from the lender.
A short sale is a complex and often lengthy process which requires cooperation and communication between the homeowner and the realtor, and the same between the realtor and the lender. However, the benefit is worth the effort.
The short sale allows the homeowner to avoid the stigma and negative repercussions of a foreclosure, and he can vacate his property with dignity.
