TRACEY MULLEN & SHARON HARRIS EARN PRESTIGIOUS DESIGNATION TO HELP HOMEOWNERS IN DANGER OF FORECLOSURE
Tracey Mullen & Sharon Harris of Re/Max Alliance Group has earned the prestigious Certified Distressed Property Expert (CDPE) designation, having completed extensive training in foreclosure avoidance and short sales. This is invaluable expertise to offer at a time when the area is ravaged by "distressed" homes in the foreclosure process.
Short sales allow the cash-strapped seller to repay the mortgage at the price that the home sells for, even though it is lower than what is owed on the property. With plummeting property values, this can save many people from foreclosure and even bankruptcy. More and more lenders are willing to consider short sales because they are much less costly than foreclosures.
In the Bradenton area, many homes are in danger of foreclosing. It is happening in all price ranges. Local experts say that even high-priced homes are not immune.
"This CDPE designation has been invaluable as I work with sellers and lenders on complicated short sales," said the Harris & Mullen Team. "It is so rewarding to be able to help sellers save their homes from foreclosure."
The Distressed Property Institute opened in January 2008 and provides training on-site and online. The CDPE is the premier designation for Realtors helping homeowners in distress and handling short sales. Contact us today for a private consultation, we are here to help and understand the complicated process of selling a short sale.
Foreclosure vs Shortsale
| Issue | Foreclosure | Successful Short Sale |
| Future Fannie Mae Loan-Primary residence(eff May 21, 2008) | A homeowner who loses a home to foreclosure is ineligible for a Fannie Mae backed mortgage for a period of 5 years. | A homeowner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed mortgage after only 2 years. |
| Future Fannie Mae Loan-Non Primary (eff May 21,2008) | An investor who allows a property to go to foreclosure is ineligible for a Fannie Mae backed investment mortgage for a period of 7 years. | An investor who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed investment after only 2 years. |
| Future Loan with any Mortgage Company | On any future 1003 application, a prospective borrower will have to answer YES to question C in section VIII of the standard 1003 that asks "Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years? this will affect future rates. | There is no similiar declaration or question regarding a short sale. |
| Credit Score | Score may be lowered anywhere from 250 to over 300 points. Typically will affect score for over 3 years. | Only late payments on mortgage will show and after sale mortgage will be reported as paid or negotiated. This will lower the score as little as 50 points if all other payments are being made. A short sale's affect can be brief as 12 to 18 months. |
| Credit History | Foreclosures will remain as a public record on a person's credit history for 10 years or more. | Shortsale is not reported on a credit history. There is no specific reporting item for 'short sale'. The loan is typically reported 'paid in full, settled'. |
| Security Clearance | Foreclosure is the most challenging issue against a security clearance outside of a conviction of a serious misdemeanor or felony. If a client has a foreclosure and is a police officer, in the military, in the CIA, Security, or any other position that requires a security clearance in almost all cases clearance will be revoked and position will be terminated. | A Short Sale on its own does not challenge most security clearances. |
| Current Employment | Employers have the right and are actively checking the credit regularly of all employees who are in sensitive positions. A foreclosure in many cases is ground for immediate reassignment or termination. | A Short sale is not reported on a credit report and is therefore not a challenge to employment. |
| Future Employment | Many employers are requiring credit checks on all job applicants. A foreclosure is one of the most detrimental credit items an applicant can have and in most cases will challenge employment. | A Short Sale is not reported on a credit report and is therefore not a challenge to employment. |
| Deficiency Judgement | In 100% of foreclosures (except those states where there is no deficiency) the bank has the right to pursue a deficiency judgement. | In some successsful short sales it is possible to convince the lender to give up right to pursuit a deficiency judgment against the homeowner. |
| Deficiency Judgement (Amount) | In a foreclosure the home will have to go through an REO process if it does not sell at auction. In most cases this will result in a lower sales price and longer time to sale in a declining market. This will result in a higher possible deficiency judgement. | In a properly managed short sale the home is sold at a price that should be close to market value and in almost all cases will be better than an REO sale resulting in a lower deficiency. |
The Distressed Property Institute and Re/Max Alliance Group assumes no responsibility nor guarantees the accuracy of this information. The Distressed Property Institute, LLC and Re/Max Alliance Group and it's agents is not engaged in the practice of law nor give legal advice.
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