CDPE certification And Certified HAFA Specialistcdpe

Bart Tipton, Broker/Realtor of Prestige Properties a part of Miramar International, has earned the designation CDPE (Certified Distressed Property Expert).

A Certified Distressed Property Expert® is a real estate professional with specific understanding of the complex issues confronting the real estate industry, and the foreclosure avoidance options available to homeowners. Through comprehensive training and experience, CDPEs are able to provide solutions for homeowners facing hardships in today’s market, specifically short sales.

The prospect of foreclosure can be financially and emotionally devastating, and often homeowners proceed without guidance of any kind. The developers of the CDPE Designation believe that the best course of action for a homeowner in distress is to speak with a well-informed, licensed real estate professional. (PRESTIGE PROPERTIES)  They have the tools needed to help homeowners find the best solution for their situation. Often, when other options have been exhausted,  CDPEs can help homeowners avoid foreclosure through the efficient execution of a short sale.

What is a Certified HAFA Specialistchs

The HAFA certification is designed for real estate agents who understand the Treasury Supplemental Directive 09-09 which was implemented on April 5, 2010.

Working with  a Certified HAFA Specialist  such as Bart Tipton with Prestige Properties may save you thousands of dollars. If you are considering a short sale, make certain the short sale specialist you hire understands the HAFA guidelines. If you qualify, you may be able to walk away from your home without any further obligation to the bank(s) and be paid $3,000 for moving expenses.

HAFA uses standard processes, documents and timelines for eligible short sale and deed in lieu transactions. It is imperative that the agent you hire understands the government programs as well as the lender/servicer guidelines in order to ensure that you are in complete compliance with the HAFA program.  The majority of real estate agents are not HAFA certified specialists.  As a home owner,  make sure to do your due diligence to select an agent with the experience and knowledge that best serves you as the borrower.

Why Use Prestige Properties to list and negotiate your short sale?

Prestige Properties has a great success rate for closing the short sales that the seller’s have come to them for help. With great marketing abilities, a great network locally and nationally of luxury and regular agents, and a team set up specifically to negotiate the short sale process, we are a well-oiled machine so we can be the best we can be for our homeowners we represent. The astonishing part of our service is that it is free to the homeowners. The lenders are responsible for the reimbursement for our expertise and the handling of the short sale process. Why not choose the best? This is one of very few instances that you CAN have the best without having to pay for it.

Why is the number of short sales rising?

Due to the recent economic crisis, including rising unemployment, and drops in home prices in communities across the nation, the number of short sales is increasing. Since a short sale generally costs the lender less than a foreclosure, it can be a viable way for a lender to minimize its losses.

A short sale can also be the best option for a homeowners who are “upside down” on mortgages because a short sale may not hurt their credit history as much as a foreclosure. As a result, homeowners may qualify for another mortgage sooner once they get back on their feet financially.

This information is to assist any homeowners that may possibly be facing foreclosure. There are certain basic steps that are taken before a foreclosure can be implemented.

Default……..This is usually the first step in the foreclosure process. It is when a payment is missed on the property either to the lending party, taxes, or a homeowners association.

Legal Notice…….This must take place in order for the foreclosing party to notify the owner of the property that they are entering the foreclosure process. For those of us in California this is called a Notice of Default (NOD). It can be delivered through personal service or published in the newspaper.

Auction Date…….This is the date the trustee (the person or company hired and responsible for administering the assets of the beneficiary) sets to auction off the property in default. The auction will usually take place on the courthouse steps.

Possession…….The beneficiary will set a minimum bid for which they will accept. If there is a winning bidder and the process is completed, a deed to the property is recorded and the property belongs to the new owner. If there is no acceptable minimum bid, then the property is said to go back to the beneficiary.

This means the bank or lending party has control over the property again. This is referred to as being bank owned or real estate owned (REO).

The foreclosure process in California has certain timelines that must be met to protect the property owner. In most cases, the minimum amount of time possible from default to actual foreclosure cannot be quicker than approx. 120 days.

For further information contact us direct at Prestige Properties 661-706-9401

Options for homeowners facing foreclosure

These may be some helpful tips for home owners facing foreclosure. For professional advice, seek a licensed real estate broker/agent such as Prestige Properties/Keller Williams Luxury Homes at bart@myprestigeproperties.com

1. Reinstatement…This is bringing your loan payments up to date with additional late fees and legal fees that the lender has issued. This can be done up to the auction date. It is not recommended to wait until the last second to do this option. You may contact the lender for the reinstatement letter and pay this off in 1 payment.

2. Re-payment or forbearance plan…..This option is chosen when the initial issue causing missed payments was temporary. A lender may set up plan to make up the missed payments over a specific period of time or add the missed payments to the back end of the loan The home owner is also responsible for late fees or any legal fees. The lender will usually require income verification to ensure there will be adequate funds to pay this amount back.

3. Rent the property….This is a possibility if the mortgage payments are low enough that rent may cover the mortgage and tax payments owed. This option becomes very hard to do when the home was purchased during the peak of the market.

4. Refinance….This is another solution which is possible if the issue that caused the property to be distressed was a short term issue. This will require the homeowner to have a relatively good credit score and in many cases a higher payment if interest rates haven’t moved much since the original loan.

5. Loan Modification… This is one of the best options for home owners to stay in their homes although some reports state that less than 10% of loan modifications actually get approved. Unfortunately, there is a very large lag time in response from the lenders to be able to effectively help most people. At this point in time very few are being completed. A loan mod. may reduce homeowners interest rate and even sometimes a small percentage of the remaining principal. Proof of income and expenses will be required for this process.

6. Deed in Lieu of foreclosure….This is one of the last resorts to avoid a foreclosure. A home owner signs the deed over to the bank or an investor thus preventing the bank a lengthy and expensive foreclosure process. The owner gives up all rights to the property including any equity that they may have.

7. Bankruptcy….Helps a home owner to reorganize debt and possibly keep their property. The bankruptcy will not guarantee the owner will continue to be able to keep their property. If after proceedings have begun, and the home owner still isn’t able to make payments, the lender may still foreclose on the property. A bankruptcy will be on a person’s permanent credit record and also be a question that needs to be answered on future job and credit applications. It also makes the possibility of completing a short sale very difficult.

8. Selling the property….. This is an obvious solution to foreclosure. Sell the property and pay off the balance of the loan either by the equity in the property or by bringing extra money to the closing table to meet all of the borrowers’ obligations.

9. Short Sale….. This solution to stop foreclosure has become one of the most common ways to stop the foreclosure process. It has a minimal effect on a home owner’s negative credit compared to a foreclosure. A short sale is when a lender negotiates a sale in which they accept less than the amount owed on a property by the borrower combined with the costs of the sale of the property. It is important to contact a Realtor that has been properly trained in dealing with short sales. The CDPE (Certified Distressed Property Expert) is a great resource to find a local Realtor. Banks are becoming more motivated and efficient in dealing with short sales. They have found it is much more financially beneficial to work with a short sale instead of letting the property go to foreclosure. If you have questions, need more information, or help with a decision whether to short sale a property, you may call us at 661-706-9401.

Short Sale qualifications for homeowners

This may be helpful to home owners wondering if they qualify for a short sale

1. An acceptable hardship requirement. There must be a hardship involved in order for the seller to qualify for a short sale. Some examples of acceptable hardships include death, divorce, severe illness, loss of employment, military service, damage to property, inheritance, incarceration, increase in mortgage payment. For a more in depth list of possible hardships contact us at bart@myprestigeproperties.com or by phone 661-706-9401.

2. Requirement for insolvency. Insolvency is when a home owner is not able to pay their debt after using their liquid cash or assets.

There is no short sale just because the homeowner owes more than the home is worth. There must be a hardship and insolvency in order to qualify. Check with a CDPE (Certified Distressed Property Expert) to see if you qualify or if your hardship is acceptable.

Prestige Properties are CDPE certified.

How do I qualify for financial incentives for short selling my home?

There are several ways. Several lenders have their own incentive by paying the homeowners directly as an incentive with cooperating with a short sale. Prestige Properties has negotiated short sales recently that homeowners have had checks of 30,000.00 and 20,000.00 from their lenders waiting for them at closing .

The government also has programs set up under HAFA AND HAMP to help homeowners. HAMP (Home affordable modification program) which is set up to help homeowners with a loan modification. Sadly, information from January 2011 shows the trend is that many people who are enrolled in the trial period were never fully accepted into the Home Affordable Modification Program. What this means is that the relief that they got was just temporary and their original mortgage terms were to be reinstated immediately. In addition, it has also been discovered that some banks were seeking back payments for people that didn’t not become fully enrolled.

HAFA,(Home Affordable Foreclosure Alternatives) on the other hand, has been seen as a very successful program for many homeowners. A borrower may be able to avoid a foreclosure by completing a short sale. Some benefits of a HAFA short sale that are approved with a legitimate hardship include:

  • Selling your home for less than you owe on the mortgage
  • Avoid foreclosure and its effect on your credit
  • No obligation to repay the deficiency
  • Qualify for a new loan in as little as 2 years
  • Receive up to 3,000.00 for relocation expenses.
  • No realtor fees are paid by the homeowner.

For more information on HAMP and HAFA rules and regulations visit web pages:

https://www.hmpadmin.com/portal/programs/foreclosure_alternatives.jsp

Or get your in depth personal questions answered directly by a Realtor that has a great record with successful negotiations in short sales such as Prestige Properties.