So now that we know the differences between foreclosure and short sale, who is allowed to do them? Typically people think that the only way a short sale happens is when the payments are behind. That is not necessarily always true.

A foreclosure will happen to any person who does not make payments and or has not been able to sell the home by a foreclosure date. A short sale can stop a foreclosure and generally is a better solution than bankruptcy or foreclosure.

The people who are eligible for short sale are folks who are in some sort of distress. Distress in the eyes of a bank can mean loss of job, divorce, death, medical hardship, dramatic income changes within the household, huge payment changes and a host of other issues. A person does not necessarily have to be behind in payments. However if you want to sell because you don’t like your home anymore, that is not valid.

Another key point to distress is your financials. If you have liquid cash, you will not qualify for short sale. However if your financials show more going out than in and you have no savings, you could qualify. One key point is retirement funds in IRA’s and SEP’s are off limits, so they stay safe.

Obviously it’s better on your credit to keep payments going, but if you find yourself sinking it’s better to consult a professional CDPE realtor before you drown. Call us at The Brian Maecker Team and we’ll show you all your alternatives.

Thanks,
Brian
www.brianstopsforeclosure.com

There are many questions regarding short sales and foreclosure. I have included the chart below to help you understand the differences. As you can see, when your home is in distress a short sale has many benefits. One must, to be successful, with a short sale get the process started early. I hope this chart helps. Remember if you find yourself with house payment issues, contact us at The Brian Maecker Team at www.BrianStopsForeclosure.com.

Thank you,
Brian Maecker

What is a CDPE and what will it do for you? A CDPE is a Certified Distressed Property Expert. A person who is a CDPE is a person who went through 3 full days of classes to learn how to successfully sell a short sale home. At my office today, I have observed a 2 hour class and many of these agents now think they are experts. Come on!! How many other realtors are thinking the same thing? Let me show you why a CDPE is the best class and certification that I have attended in years.

The short sale arena is very difficult at best. Alex Chorfin for the Distressed Property Institute has written the book on short sale mastery. The materials and procedures are priceless. A CDPE has gone over every page of a 175 page manual on how to work through the process with Wells Fargo, Countrywide, Aurora, Citibank and any other lender you can think of. We spent 3 days learning the causes and different avenues sellers have to cure distress in the household. Along with the manual we have received 60 pages of checklists and procedures that a seller and realtor need to follow to have a successful closing.

So tell me who is the expert? The realtor with a 2 hour class or the realtor with several years of experience and a 3-day class of certification?

The process of a short sale is complicated. In summary it requires aggressive pricing. In addition to pricing a seller needs to authorize a realtor to negotiate with a bank. The seller also needs to do a financial report to see if the distress is real. There is criteria to determine this. Assuming the criteria and financials meet distress standards a short sale can proceed.

In order for the sale to proceed it requires tons of follow up. One must understand that these banks have hundreds of files on several desks. A CDPE file will be complete. It will stand out. It will close.

So for Realtors and sellers alike, when a property is a likely short sale, get the knowledge and know how of a CDPE. Call The Brian Maecker Team @ 719-593-2963 for a confidential appointment.

Thanks,
Brian