CDPE: Certified Distressed Property Expert

I recently obtained my Certified Distressed Property Expert designation. I am now equipped with the best knowledge and resources available to help people who are struggling to make their mortgage payments and in some situations, can’t make the payment. Ideally, I would like to help the homeowner stay in their home, but if I can’t, I may still be in a position to help.

There are various reasons a homeowner could have fallen into distress. While there are many distressed properties today as a result of the subprime crisis, the following factors, whether combined with a subprime loan or even a traditional 30 year mortgage or on their own, can cause a property and homeowner to become distressed.

• Payment Increase or Mortgage Adjustment
• Loss of Job
• Business Failure
• Damage to Property
• Death of a Spouse
• Death of family members
• Severe Illness
• Medical Bills
• Inheritance
• Divorce
• Separation
• Mandatory Job Relocation
• Military Service
• Insurance or Tax Increase
• Reduced Income
• Too much debt
• Incarceration

A hardship is defined as: A material change in the financial situation of a homeowner that is or will affect their ability to pay their mortgage.

If one of these hardships is something you have experienced, contact me and I’ll do what I can to help you right away!

What is a Short Sale?

This is a term that is being used more and more often in recent home sale and mortgage news. A homeowner is ‘short’ selling their home when:

A borrower owes an amount on his property that when combined with closing costs and commission is higher than current market value.

A short sale occurs when:

A negotiation is entered into with the homeowner’s mortgage company or companies to accept less than the full balance of the loan at closing. A buyer closes on the property and the property is ‘sold short’.

A short sale may be the best option for the homeowner in order to avoid foreclosure on their home. If you can, work with a professional who has the tools to adequately present your situation to the lender. Lenders are more responsive to a short sale situation today than ever before in the past.

For more information on the differences in homeowner consequences between a Foreclosure vs a Short Sale, click here.

Reasons to Avoid Foreclosure

• You will always have to disclose that you have had a foreclosure on any mortgage application and many job applications you submit in the future – this can have an adverse affect on your future mortgage rates. This is the only credit item that is asked for specifically and does not rely on what is on an individual’s credit report.
  
  
• Credit scores will be lowered by 300+ points and a foreclosure is the most devastating credit issue you can have in relation to future credit availability.
  
  
• A foreclosure is the one credit report item that is almost impossible to have ‘repaired’.
  
  
• Your lender can seek a deficiency judgment against you and collect for any amount they do not recuperate at bank sale.
  
  
• Many employers run credit checks on prospective employees and foreclosure is one of the top items that will put a potential new hire in jeopardy.
  
  
• Many current employers run credit checks and foreclosure can put a current position in jeopardy.
  
  
• Security clearances and government positions, including but not limited to, military and law enforcement, can be jeopardized by a foreclosure.