I am amazed as to what I learned while taking my CDPE (Cetified Distressed Property Expert). I have been a Real Estate Broker in Long Island NY for over 20 years. I thought I knew alot about real estate and distressed properties. WOW! I did not know Jack.
Some of the things I learned:
- Approximately 50% of families in foreclosure take little or no action. In essence they gave up control of their future to the bank.
- For those in the military or government employees a foreclosure will affect their security clearance, where a short sale will not.
- A foreclosure will affect your credit for 7 years, where a short sale will be more like 2 years.
- A foreclosure WILL leave you with future financial liability, where a short sale MAY not.
- There are hundreds of thousands of families in some stage of forclosure
- The banks that often sold the debt but processed the loans were getting their fees whether the debt was being paid or not and often it was financially better for them to let the home forclose than to allow a short sale.
I am now committed to assisting those families in Nassau, Suffolk and Queens Counties in New York that are in distress. I will not now or ever call myself an expert (no matter what the designation says). I am a professional, I am experienced but I am no "expert".
It kills me to see hundreds of short sale listings sitting on the market with some agent who is "winging it". I attend the foreclosure Auction in Nassau County every Tuesday and record the results. I record which bank, property address, upset price, opening bid, finl bid and who won the bid (over 80% taken back by the bank). When I get back to the office I look up the properties to see if they are or were on the market. So many were on the market at 120% of todays market value some listed as short sales some not.
When people ask me why I go to the foreclosure auction I tell them it is to learn. I now have an idea as to the Long Island "shadow inventory". I know of future REO inventory. I am learning it not "winging it".
Erik Reilly
Lic RE Broker Associate CDPE REMAX Shores Long Island NY 516-984-0789
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