As a Steamboat Realtor trying to stay ahead of the trends, I recently completed my Certified Distressed Property Expert certification to have a better knowledge of Steamboat area short sales and how to help homeowners avoid foreclosure.
If you are a Steamboat property owner who is behind on your payments and searching for options, selling your home in a short sale may be what you need to get out of debt and move forward.
Certified Distressed Property Experts (CDPEs) have reported a 49 percent decrease in the average time to complete a short sale after achieving the CDPE Designation, according to a new survey from the Distressed Property Institute. Before becoming a CDPE, the average time for these agents to close a short sale was 53.01 days, compared to 27.26 days after becoming a CDPE.
“No other real estate designation in the country can claim these results,” said Alex Charfen, co-founder and CEO of the Institute. “CDPEs are making a clear and definable difference in the real estate market by assisting distressed homeowners to stay in their homes or, when this is not possible, by helping them sell through a short sale.”
Many people behind on their mortgage (and nationwide it is 1 in 10 households) think foreclosure is their only option. Very few talk to a Realtor who has been trained in short sales about their options to save their credit while selling their house.
A successful Short Sale can impact a credit score by as little as 50 points if all other payments are made. The effect of a short sale on credit can be as brief as 12-18 months vs. at least 10 years for a foreclosure. Foreclosures also affect credit by lowering a score by 250-300 points.
The qualifications for a short sale include any or all of the following:
- Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
- Monthly Income Shortfall – “You have more month than money.” A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
- Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.
Steamboat saw a huge price increase and a record real estate year during the last year of free lending. Those mortgages are now being re-set and more people are falling behind.
The short sale process requires a lot more work than a straight sale, but having people able to get out from under the burden of debt while maintaining their credit score makes it worth it.
Please call Eliese at (970) 819-6372 to discuss listing your Steamboat home as a short sale.