Perfect example of the importance of a CDPE designation
This weekend I received a call from a family member living outside Arizona, who was trying to get information for one of their in-laws about selling a home that is worth less than they owe. I asked him a few questions to get an idea of whether or not this homeowner would qualify for a short sale or if they just want to sell their home and know they can’t get what they owe. There is a difference.
To be eligable for a short sale on your home, you MUST be able to show the bank a hardship. These might include loss of a job, substancial loss of income, large involuntary increase in expenses (such as major unexpected medical expenses) are the most common causes of a hardship. In other words, you need to become “unqualified” for your mortgage. Each bank determines hardship on a case by case basis.
I explained all this to my family member. He said that his in-law had a huge drop in income, which in and of itself does not create a hardship. It depends on what her expenses are. They are not behind on their mortgage payments at this time, but has been advised to stop making payments. I would NEVER advise that a homeowner just stop making payments. There are other steps you can take. She has also been advised to just move and walk away from her home. NEVER would I advise this either! There are other steps you can take.
I told my family member to have his in-law call me and I would refer a CDPE (Certified Distressed property Expert) agent to them in their area.
Your home is probably the most valuable investment you have. It is important to trust your asset to someone who knows what they are doing. Your credit rating is just as valuable. Your insurance rates are based on credit scores, your interest rates on your credit cards are based on credit scores. Your ability to buy a car, buy a home, rent an apartment even changing jobs are all based on credit scores. A forclosure on a credit report is worse than a bankruptcy. It stays on your report for more than 7 years. It follows you for a long time. A short sale stays on your credit report, but in most cases only prevents you from purchasing a home for 2 years as long as everything else is paid on time.
This is why it is so important to entrust this investment to an agent who understands the process, the qualification standards and the best way to proceed for your circumstance.
The latest statistics show that 1 out of 8 homeowners are either in default, or about to default on their home mortgage. There is a very good chance that you or someone you know is experiencing a hardship. Please let them know that there is help available. In most cases, we can avoid foreclosure. Sometimes, depending on circumstances, we can even find a way for you to keep your home.
Give me a call. If you, or someone you know, are out of state or out of my area, I can refer a CDPE agent to you. If you, or someone you know, are in my market area, I would love to help.
Lynn Otlewski, CDPE
623.238.3875
