Short Sale Denver and Denver Foreclosure Information | Daniel Hilty

Many homeowners have misconceptions regarding short sales and out of pocket expenses. Short sales occur when the Bank accepts less than what is owed on a mortgage and does not receive full payoff on the mortgage.

The Bank(s) has the rights to pursue a deficiency judgment against a homeowner whenever their is a mortgage shortage verses receiving full payoff on the mortgage. Is the Bank(s) likely to pursue a deficiency judgment against a homeowner for the shortage? There is a possibility that could occur, however it is extremely costly for a Bank(s) to pursue a deficiency judgment and even less likely for them to collect on the judgment, especially homeowners with no assets.

There have been many homeowners with the misconception there are out of pocket expenses when doing a short sale. A homeowner should not have any out of pocket expenses when doing a short sale. Some homeowners have been led to believe they owe out of pocket expenses just to do a short sale. That is false! Any Real Estate Agent/Broker not negotiating the short sale on behalf of the homeowner should be paying for any 3rd party negotiating on their behalf for the homeowner. After all, are they not supposed to be the professionals representing the homeowner? If a Real Estate Agent/Broker is not negotiating on the homeowners behalf and is charging the homeowner additional fees, whose interests do they really have in mind? Short Sales go well beyond just closing another deal! Any homeowner being charged upfront fees or having to pay additional fees for a short sale, should be very skeptical.  

As an example, there was a homeowner that I assisted through a success short sale approximately 1 year ago. Prior to knowing me, the homeowner had the property listed with another Real Estate Broker, whom had the property listed for a $100,000 over its market value. After waiting 5 months trying to sell the property, the homeowner wanted to do a short sale verses facing foreclosure. The Real Estate Broker was going to charge the homeowner an upfront fee to do a short sale, which the homeowner obviously did not have. Had the homeowner not been introduced to me from a previous client, the property would have gone to foreclosure. When I finally met the homeowner, we had 3 weeks to get the property under contract and in order to stop the foreclosure. A week prior to the foreclosure sale, two offers came in and the pending foreclosure was halted. This was a very valuable lesson and should be for any homeowner in this position. It was a very gratifying and fulfilling experience, watching a distressed homeowner going from the brink of foreclosure to salvaging the dignity that was so deserved.

The homeowner is NOT and should NOT be responsible for out of pocket expenses on a short sale. If you as a homeowner have been charged upfront or out of pocket expenses, please do further research. After all, whose is profiting from these fees? It is painful to watch a distressed homeowner being taken advantage of because of their situation.

Another common misconception that many Real Estate Agents/Brokers utilize is a pre-approved short sale. The only pre-approved short sale is an FHA short sale without a buyer. With the new HAFA Program, Bank(s) may be able to set an approved price on properties if the homeowner is unablle to qualify for a loan modification. Even if the Bank(s) pre-approves a short sale with a particular buyer, that pre-approval is with that particular buyer only! Any new buyer would have to get a new Bank(s) short sale pre-approval.

As a homeowner facing foreclosure and needing assistance, they should be knowlegable about the facts. Being educated how the short sale process works or having some knowledge of the process can be very beneficial. It may pave the path to Dignified Solutions and provide the homeowner the dignity they deserve. Ask questions and lots of them, understand the process and strategy, be informed, and please understand hiring a Real Estate Agent/Broker that doesn’t understand short sales and the process, may not be your best choice. Choosing the right Real Estate Agent/Broker to represent you through the short sale process may be the difference whether you have a successful short sale or a reported foreclosure on your credit report.

A Real Estate Short Sale is a Real Estate Transaction where the proceeds from the Sale fall short of the mortgage balance(s) owed on the property. Real Estate Short Sales can occur when the Seller becomes delinquent on their mortgage. Sellers may become delinquent on their mortgages from a variety of reasons, such as loss of income, medical, divorce and etc. In other situations where a Short Sale may occur is when the Seller may have a unique set of circumstances in which the mortgage(s) are still current. The Lenders may be more reluctant to consider a short sale under these circumstances, but in some circumstances a Short Sale will at least be considered. If the Seller can state a clear hardship of events and the Lender predicts a foreclosure will occur from those events it will enhance the probability they will consider a Short Sale. In other cases, the Lenders may not consider a Short Sale until the Seller is at least 30 days or more delinquent.

Who qualifies for a Short Sale you may ask? Any homeowner whom can establish a  hardship may be eligible. Hardships can be established from a variety of causes: excessive debt, adjustable rate mortgages adjusting, job relocation, loss of income, owing more on the property than its current value in today’s market, divorce, medical to name a few. Any hardships that have caused family anxieties, unbearable stress, future uncertainty and heartache with the possibility of facing FORECLOSURE, should explore their options.    

If in doubt, ask a qualified professional to assist you. All inquires are confidential. Explore your options and get the true facts. The knowledge and education is FREE and could save homeowners future anxieties, unbearable stress, uncertainty and heartache in the future. There are many available Dignified Solutions vs. FORECLOSURE! There was a previous BLOG posted on August 8, 2010 of the Homeowner Consequences, FORECLOSURE vs. SHORT SALE. Always use common sense, there are some homeowners that are better off going through foreclosure, but the majority of homeowners do have options. Homeowners should protect their future and should be treated with dignity throughout the process. Use a professional that will treat your situation respectfully and embraces you with dignity and not as a failure!

Bank of America is doing a test short sale program in several states hit hardest by foreclosure. These are some of the changes Bank of America is pursuing as they recently announced at the June 10, 2010 summit that I attended. Below is another announcement by the REO Insider: 

“REO Insider recently reported on a new short sale program being tested by Bank of America. This cooperative short saleinitiative has targeted just 2,000 pre-screened homeowners, mostly in the hard-hit states of California, Florida, Nevada and Arizona. Here are some more details of the program:

• For homeowners considered for modifications under HAMP and short sales under HAFA … having fallen out or failed to qualify
• No new documents are needed
• Deficiencies are waived
• The real estate agent will work with a short sale specialist appointed by the bank to market the property for 120 days
• The bank will not be selecting agents to work with the homeowners
• 6% commission guaranteed
• $3,000 relocation fee for homeowner”

There will be more details emerging as this pilot program is launched.

Distressed Homeowners, whether in these states and/or other states, should take advantage of these programs. There a numerous programs available for homeowners in distressed situations. If you or anyone you know is a Distressed Property Owner, have them research their options or contact an educated professional to guide them to the proper available resources. There are Alternative Dignified Solutions to Foreclosure.

HAFA, or Home Affordable Foreclosure Alternatives was released in April 2010. It is the governments newest program put in place to benefit homeowners who do not qualify for HAMP assistance. This program was specifically designed to expedite foreclosure avoidance options for homeowners in need. Promoting a quicker execution of a short sale or a deed -in-lieu, the HAFA program could potentially save millions of homeowners from the financially devastating events of foreclosure.

A short sale occurs when a property is sold for less than the mortgage amount in order to avoid the foreclsoure process.

In a deed-of-lieu of foreclosure, the property is returned fully to the lender because the homeowner can no longer afford making mortgage payments, and the property is then sold to recover a portion of the loan balance owed.

The HAFA Guidelines in order to qualify for the HAFA program, the homeowner must first meet the initial HAMP guidelines.The guidelines are as follows:

1.) Be delinquent on your mortgage or face imminent risk of default

2.) Occupy the property as your primary residence

3.) Have a mortgage originated on or before January 1, 2009

4.) Have an unpaid balance no greater than $729,750 for a one unit property; AND

5.) Have a total monthly mortgage payments exceeding 31% of your gross income

If you do meet the above criteria, but a mortgage modification still leaves you with an unaffordable mortgage, HAFA becomes your primary solution to avoid foreclosure, salvage your credit score, and more importantly move on with dignity through a short sale or deed-of-lieu.

HAFA can potentially save a homeowner a lot of grief and heartache by creating a standardized process and setting limitations on how long a lender can wait to respond to short sale requests. Currently short sales can be a lengthy process and it can make it difficult for potential buyers to stay with the short sale process.

HAFA requires participating lenders to determine what they are willing to accept before dealing with a short sale request – very similar to an FHA pre-approval short sale as an example. This prevents the lender from abruptly changing its demands for how much money it wants from a short sale. The fewer changing demands the lender can make, the better it is for the homeowner and buyer.

HAFA also benefits the homeowners by stopping a lender’s ability to pursue a deficiency judgment after a short sale or deed-of-lieu has been completed. Prohibiting a lender from seeking a deficiency judgment after a short sale, means they cannot seek the deficiency balance owed on the loan. This protection allows the homeowner to regain financial stability quicker and move on with their lives.

Homeowners can also receive a $3,000 incentive upon completion of a short sale.

HAFA does offer participating lenders an incentive of up to $6,000 for a successful processed short sale or deed-of-lieu. The lenders are not permitted to charge you, as the homeowner, any processing fees or out-of-pocket expenses, and this incentive is given to them in exchange for that limitation.

A select few lenders and mortgage servicers may not participate in HAFA program. The truth is a lender will almost always lose more money in a foreclosure verses a short sale or a deed-of-lieu. If the lender is convinced that a homeowner has no resources to pay the current mortgage, they will be more concerned with salvaging as much of their investment as possible, so a short sale is generally the best option.

If the homeowner attempts a short sale under HAFA and a transaction does not close by the program’s deadline, the lender will receive the property in deed-of-lieu of foreclosure. By doing so, this will effectively get the homeowner the same results, a more positive solution to foreclosure. The mortgage debt will be forgiven, your credit score salvaged, and you will receive the $3,000 incentive to assist with moving costs.

This program offers another Dignified Solution verses foreclosure.

Facing foreclosure and facing the sad truth of foreclosure reality is so real for so many people. Today 1 out of every 6 homeowner is either facing foreclosure or owes more on their property than what it is worth. You are not alone! Today’s Real Estate Market has caused many families anxieties, unbearable stress, uncertainty and heartache when facing the possibility and reality of Foreclosure.

I came face to face with this reality a few days ago. I was visiting a neighborhood a few days ago and stumbled upon this home that was very well maintained, lawn neatly manicured and a home that gave no indications of being distressed or in foreclosure at all. There was pride in ownership, pride in street appeal, pride in owning this home for 20 years. I had to check the property address several times to make certain this indeed was the property and address that was facing the ugly truth of potential foreclosure. I walked up to the front door, knocked and waited for the homeowner to open the door.

I complimented the homeowner on the manicured front lawn, the well maintained property and pride of ownership in general. This home definitely did not fit the profile of a foreclosure property, where the homeowner had given up hope, neglected the maintenance, neglected the lawn, and allowed weeds to smother out the grass attempting to survive without water except the natural rain fall. I spent several minutes talking to the homeowner about options, assistance in salvaging the mortgage and the realities of it all. The fear and uncertainty was obvious and the anxieties of facing an unstable future. The tears whelmed up in her eyes and rolled down her cheeks, the fear of losing it all was very real. The inevitable of possibly losing a home that was owned for 20 years. Yes she did whisper 20 years of ownership and now on the verge of losing it all. It forces one to pause and think out loud. What happened that caused these good caring people into a position of losing it all?

My heart went out to this family and their uncertainty facing the future. It was sad, but yet so real to see the sad realities this family is facing. Did they appear angry and lash out in anger, “no”. Did they blame anyone for their unfortunate circumstances, “no”. The reality has started to sink in and the fear of situation showed. The tears were all that needed to be said, they made a bold statement. There was the hurt, the pain, the heartache, the unbearable stress and the anxieties! This was reality, this was a sad reminder of what is happening to so many great families. So many people are hurting, so many people are seeking answers and solutions to their problems. There are so many conflicting stories, what is one to believe?  Maybe people such as this family wanted to be treated with respect and treated with dignity and provided options. Maybe they want encouragement, but above all treated as good human beings. 

Families such as this need help, they need assistance, they need to be treated with respect and dignity. Foreclosures and people facing foreclosure is not about being taken advanaged of or providing limited options to get a sale. Yet it happens so frequently, with people being taken advantage of, creating a situation that is adding more uncertainty and heartache to the foreclosure equation. This is very unfortunate, yet it happens daily. There are people that circle these homes and take advantage of the situation and provide homeowners with limited information. The more information a homeowner has regarding foreclosure and its process, the more informed they will be when making decisions. 

If you or anyone you know is in this situation, and there are many, there are available programs to explore verses foreclosure. They should seek out a knowledgable professional that is educated and understands the programs and the steps necessary to overcome foreclosure. Give these families hope, provide assistance, show them dignity, show them respect. This problem is very real and humbling, there is human tragedy and many families are facing an uncertain future. Coming into contact with families facing uncertainties and foreclosures, it adds a real human element to the foreclosure equation. These people are not failures, these people deserve dignity and respect. And yes there are Dignified Solutions to these problems. Be informed, be educated, know your rights, afterall you deserve options. After everything is said and done, maybe, just maybe, the situation is not as bleak as first thought. Salvage what you can, let someone with the expertise assist you in solving the crisis, saving your credit, and relieving the uncertainty and stress. Seeking Dignified Solutions is a better option than seeking none at all! Remember, you are not alone!

It is important for Denver Real Estate homeowners and agents to be aware of recent scams that have been infiltrating the Denver Real Estate Market and also the Denver Metro Surrounding Areas. In January 2010, I was first approached with a similar scam from a gentleman by the name of Masato Shiotani whom claimed to be from the UK. The purchase was for an anniversary gift to his wife and the deal had to be closed by the first week in March 2010. When a Google search was conducted on Masato Shiotani, on appearance he was a CEO for a business out of Asia and currently working on a project out of the UK.  All the events and locations he claimed to be at the time, did check out. Whether the purchaser was the REAL Masato Shiotani we may never know the answer to that question.

We also contacted the FBI because the seller was furious of the likelihood of a scam. The FBI informed us it is fairly common for buyers on cash transactions moving monies from different accounts because it makes it harder to track. According to them they didn’t think this transaction was  abnormal or even a scam because they see transactions very similar to this occur frequently. 

THE PLOT THICKENS…..

When this transaction was in the beginning stages, on appearance it would have been an excellent opportunity for the seller. With the seller’s property going into foreclosure this purchase, if completed, would have allowed the seller to avoid a foreclosure and/or a short sale and payoff the loan in full. I pursued this transaction with caution and insisted the buyer provides a photo ID, Proof of Funds, and a wire transfer (for down payment and earnest monies) into the Title Companies Trust Account. He seemed perplexed with these demands because he was paying cash. He was instructed it is my obligation to protect the seller and make sure the monies are available and in a verifiable account. This information was never provided.

I also insisted that Masato select a property inspector and appraiser from a list of vendors provided and a credit card number and account to charge these services to and have paid upfront. He was also instructed to get homeowners insurance coverage and quotes. In the Additional Provisons of the contract, it was detailed very clearly, once the buyer passes these objection deadlines and fails to close, he would automatically be in forfeiture of the down payment and earnest monies. The Buyer refused to follow any of these instructions, therefore we never proceeded forward.

Several weeks later I received a phone call from Dan from the State of Georgia US of A. He informed me of the monies he was providing for Masato Shiotani’s purchase. Several weeks later a check was sent to the Title Company from a George Brown in Toronto Canada. All the wiring instructions were sent to Masato to wire the monies, yet they chose to send a check in a plain white envelope with no return address, to the Title Company. Of course that raised more Red Flags. Why would a check of approximately $340,000.00 not be placed in a Fed Ex Package or a trackable package? Obviously the monies did not clear the account and the Title Company was informed it could take up to 90 days for the monies to clear the account since it was a check from outside the USA. That raised other issues because with the exchange rates, one cannot project what they would be from day to day unless the monies were wired.

When a Google search was conducted on George Brown, it went to George Brown University in Toronto Canada. When the phone number was called, George Brown always answered the phone. George Brown instructed us to destory the check immediately and provide proof it was destroyed and he assured us GOOD FUNDS totalling $340,000.00 would be wired. The balance or remaining funds would be wired prior to closing.

The claim from the buyer as to why the monies were coming from Dan in Georgia, was he owed him these monies for quite some time. He decided it time to collect the owed monies from his friend in the USA and purchase this home for an anniversary gift to his wife. Obviously the monies were never wired and Masato Shiotani disappeared after several more communications.

In July 2010, I received the following communication from an Eiji Suzuki from Toronto Canada:  

“This is an automated message sent by a REALTOR.com(R) website consumer.  To reply, please use the email address supplied by the sender: ejisu@aol.com

To: Daniel M. Hilty

From: ejisu@aol.com

First Name: Eiji

Last Name: Suzuki

Subject: i need a home

Reason for request: unspecified

Message:

Good Day,

I am Mr. Eiji Suzuki, i and my family will be relocating to the USA for Good, after searching the Internet for a reliable real estate agent I found your firm and its rating was so high and I have decided to choose your firm to buy my permanent home.

The home will be a cash buy and I need 3 to 4 bed room home price ranging between $400,000.00USD – $650,000.00 in nice neighborhood in your city. Please kindly forward me your listing with this criteria so that i and my wife can view them properly before my arrival.”

Regards

Mr.Eiji Suzuki

Best time to contact me: evening

I am a: unspecified

I plan to buy/sell within: 1 month

Properties were emailed to Mr. Eiji Suzuki from all over the Denver and Denver Metro Area that fit within the price parameters he requested. Several days later, he responsed requesting to purchase 1 of my listings that was well below purchase parameters he had requested. There were Red Flags immediately. However, this time there was a photo ID attached, social security number attached, proof of funds attached, which was very different from the previous scam. The request still raised many questions, “why the buyer refuses to wire the monies” and “why he requests the down payment and earnest monies be placed with an attorney”. Earnest monies can be placed with an attorney’s firm, if they are representing the client. In further communications, we stressed the importance of instructions being followed otherwise there will be no contract, nor will we even consider an executed contract be in place until ALL MONIES are accounted for in GOOD FUNDS! Attached please find his initial request for purchase:

When dealing with a scam such as this, it is of utmost importance to pay very close attention to details and if its too good to be true, it probably is. In our response to Eiji Suzuki, we insisted he wire the monies and provide additional information because that would determine very quickly the motivation and/or its legitimacy. He claimed the reason monies could not be wired was because he was out of the country. Everyone knows monies can be wired from anywhere in the world! His unwillingness and refusal to cooperate with my demands was a clear indication the transaction was not legit. The following was my final contact with Eiji Suzuki:

“Dear Mr. Eiji Suzuki,

 First of all the contracts, that I am obligated to use is electronic signature via email, and they were sent to ejisu@aol.com. If you need to transfer the email to www.docusign.net, please do so and get back to me. I am not wasting much more time with you because you have not followed instructions, you have not contacted nor retained the attorney, you won’t wire money and very strange you cannot download the contract because everyone else all over the world can. I have been through this same scenario with these same issues, same problems from Toronto Canada, same tactics, same excuses. Either you follow my instructions or do not waste anymore of my time nor anyone else’s. When the other checks arrived from Toronto Canada  they were no good. I will be very upfront and clear with you, there will be NO CONTRACT NOR PURCHASE until you sign the contract and return, have REAL MONEY in a trust  account (not a check) to verify (and it will be verified) that it has cleared your account. There will also be NO CLOSING until all the monies have been cleared and/or wire cleared. It is very strange that you insist the earnest monies be placed with an attorney that you have not had contact with nor retained and paid to represent you. They will not accept your money, even if the monies are good without being hired and retained. You have not contacted them via email, phone or any other means of communication. I forwarded you their response. You have all the information, the attorney contact, the contract and etc. It is up to you to fulfill your part of the contract if you want to proceed. In the meantime, I am seeking other Buyers for the property as are the sellers. The decision is up to you to get these items back to me. If you have any questions please feel free to contact me.

Best Regards,

Daniel M. Hilty”     

When Channel 9 News broke the news story with the same gentleman, Eiji Suzuki, it was important that homeowners are aware these scams are very real. I was still trying to comprehend how this scam works and how there would be a financial gain if the appropriate steps were taken by Real Estate Brokers and other professionals. On appearance, the buyer of the scam sends monies and then very quickly terminates the contract and requests the monies be returned. As a licensed Real Estate Broker, there is no contract until they have provided the earnest monies as per contract. Earnest monies need to be verified. If earnest monies are not available for deposit as per contract, the buyer has defaulted and has an obligation to correct that default if they expect to have an executed contract. Earnest monies can be verified the same day whether they will clear an account. Both Real Estate Brokers and holders of earnest money deposits know the monies should never be returned until all monies have cleared and are GOOD FUNDS!

It appears some homeowners have lost monies due to these scams and it is important that Real Estate Brokers are protecting the homeowners from these scams. In both of my scenarios we never took the property off the market nor did we lose any time. In both cases, the buyer never signed the contract because of our insistence for additional documents. The appearance of a scam was very real and our persistence caused both buyers to give up and move onto other properties. The latest instance was so very different from the previous because they provided all the documents we normally request upfront, even though they were more than likely phony documents. It should also be noted the attorney’s office has declined working with Eiji Suzuki.

In closing, it is important even during desperate times that sellers and agents use common sense when confronted with scams. Homeowners be very cautious and if in doubt, always seek legal advice or seek out the appropriate professional. NEVER give out personal information, accounts, or any other information that may harm you in the future.

Any homeowner confronted with a decision, foreclosure vs. short sale, it is important to be knowledgeable, know some of the facts and understand the potential consequences. Whether the decision is foreclosure vs. short sale, there are realities and consequences from both. Every  homeowner has a unique situation and has to decide whether foreclosure vs. short sale is the best option. The following are some important issues and facts to consider when debating whether you should let the property go to foreclosure vs. short sale:

Future Fannie Mae Loan – Primary Residence - If the homeowner lets their property go into foreclosure they will be ineligible for a Fannie Mae -backed mortgage for a period of 5 years. If the homeowner successfully negotiates and closes a short sale they will be eligible for a Fannie Mae – backed mortgage after only 2 years.

Future Fannie Mae Loan – Non-Primary Residence – An investor that has a Fannie Mae - backed mortgage and allows it to go into Foreclosure is ineligible for a Fannie Mae backed Investment Mortgage for a period of 7 years. If an investor successfully negotiates and closes a short sale will be eligible for a Fannie Mae - backed  Investment Mortgage after only 2 years.

Future Loan with any Mortgage Company – On any future application, a perspective borrower will have to answer “YES” to question C in Section VIII of the standard 1003 form that asks “Have you had a property foreclosed upon or given title or deed in lieu thereof in the last 7 years?” This will affect future rates. With a successful short sale, there is no similar declaration or question regarding a short sale.

Credit Score – In a foreclosure, the credit score may be lowered anywhere from 250 to more than 300 points. Typically this will affect a credit score for over 3 years. In a successful short sale, only the payments on the mortgage will show, after the sale, mortgage is normally reported after the sale as “paid as agreed” or “paid as negotiated” or “settled”. This can lower the score as little as 50 points if all other payments are being made. A short sale’s effect can be as brief as 12 to 18 months depending on the circumstances.

Credit History – Foreclosure will remain as a public record permanently, and on a person’s credit history for 10 years or more. With a successful short sale, a short sale is not reported on a credit history. There is no specific reporting from a “short sale”.  The loan is typically reported “paid in full, settled”.

Current Employment - In a foreclosure, employers have the right and are actively checking credit of all their employees who are in sensitive positions. In many cases, a foreclosure is a reason for immediate reasssignment or termination. In a successful short sale, 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 applications. A foreclosure is one of the most detrimental credit items an applicant can have and in most cases will challenge employment. In a successful short sale, a short sale is not reported on a credit report and is therefore not a challenge to future employment.

Deficiency Judgment – In a foreclosure, 100% of foreclosures (except in states where there is no deficiency), the bank has the rights to pursue a deficiency judgment. The State of Colorado is a state where a bank can pursue a deficiency judgment. In a successful short sale, it is possible to convince the lender to give up the right to pursue a deficiency judgement against the homeowner. It is of utmost importance that the homeowner feels confident and trusts the party negotiating their short sale. Banks can approve to do a short sale and allow the transaction to close, however they also have the right to pursue a deficiency judgment after the fact. In addition, if the party negotiating a short sale isn’t fully competent in their handling of the situation, the homeowner can be driven into foreclosure even though they are attempting to do a short sale.

Deficiency Judgment Amount – In a foreclosure, the home will have to go through an REO process if it doesn’t 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 judgment. In a successful short sale and 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.

Security Clearance – In a foreclosure, foreclosure is the most challenging issue against security clearance outside serious misdeameanors or felony convictions. If a client is a member of the police, military, CIA, or any position that requires security clearance, in most cases clearance will be revoked and the position will be terminated. In a successful short sale, on its own, a short sale does not challenge most security clearance.

As a Realtor and CDPE, certified distressed property expert, I wanted to share this knowledge and research available from the Distressed Property Institute. This information can be a valuable assest and valuable information to someone confronted with a foreclosure. In every foreclosure situation or delinquency in mortgages, every homeowner has to make calculated decisions and informative decisions. The more information available to a homeowner, the better the choices. The better the choices and more informed distressed homeowners are, they may have an outcome that isn’t as bleak as first imagined. It is my dream and goal to assist distressed homeowners, provide the knowledge, and assist them with the dignity they deserve. There are available Dignified Solutions and educating homeowners and is assisting them is the first step in solving the foreclosure process, 1 homeowner at a time.

If you or someone you know is facing foreclosure or is delinquent on their mortgage(s) or is facing a hardship and owes more on their home today than what it’s worth, one of the first steps to saving your credit and/or home is being educated on the foreclosure process and being educated on your options. The foreclosure process can be an overwhelming experience and the vast majority of homeowners do not know where to turn to for assistance. There are a number of rescue scams and mediators that promise a quick resolution to a pending foreclosure in exchange for upfront fees. Therefore knowing the foreclosure facts and your personal rights, verses being scammed, can be extremely helpful and beneficial when either facing foreclosure or the possibility of facing foreclosure.

One of the first steps a homeowner to consider is contacting an educated counselor or agent in assisting throughout the process. Be very wary of any rescue scams or mediators that promise quick resolutions to a pending foreclosure. Also be very wary of scams that promise quick resolutions to a pending foreclosure in exchange for upfront fees. Also be wary of scams where you sign a Quit Claim Deed to another party. Be very wary to scams that promise a quick resolution to a pending foreclosure where they potentially make your mortgage payments and/or have your personal or mortgage account information. If a Quit Claim Deed is signed over to another party, the homeowner has signed away their interests to the property to the other party, however the homeowner is still liable and responsible for the mortgage payments. The only way to alleviate that liability and responsibility is to have the other party qualify through the existing lender and assume the mortgage or get a new loan. Depending on the loan to value and if the property is in foreclosure or has depreciated considerably in value, it may be highly unlikely for another party to get a new loan. Therefore, it is important for the homeowner to understand the entire process and their rights or have a qualified professional guiding them through the process.

A reputable counselor or agent will never guarantee to stop the foreclosure process, no matter what the circumstances. The homeowner should always look for a qualified counselor or qualified agent that has been properly trained in foreclosure avoidance. It certainly does not hurt to look for assistance from a counselor or agent that has the CDPE Designation or is well versed and properly trained in foreclosure avoidance options available to homeowners. Advanced CDPE designated agents also have the education and the latest resources to provide the appropriate options and solutions.  

In summary, homeowners facing foreclosure or delinquencies on their mortgages or facing hardships and owing more on their home than what it’s worth, should seek an educated quaklified counselor and/or agent to assist them through the process. Use your better judgment if someone asks you to sign a document that is unfamilar to you. Be very wary if you are promised quick resolutions and a request for upfront fees. Ask questions, ask a lot of questions! Finally, always seek out the appropriate professionals, whether legal or tax counsel, prior to proceeding forward. View all your options upfront and select an option that best fits your needs.