CDPE: Certified Distressed Property Expert
Glen recently obtained his Certified Distressed Property Expert designation. I am now equipped with the best knowledge and resources available to help people who are struggling to make their mortgage payments and in some situations, can’t make the payment. Whether you decide to contact remortgage brokers, rent the property in order to afford the mortgage, or selling it altogether, there are a couple options for those who are struggling to keep up with payments. Ideally, I would like to help the homeowner stay in their home, but if I can’t, I may still be in a position to help. If you are unable to use my services, you can alternatively look at a foreclosure attorney Denver firm, or a firm that is closer to the location of your property, to make sure that you are being handled correctly.
Being prudent about the home buying process at the start could help in maintaining regular payments to the mortgage lender. A foreclosure is not something that any homeowner would want to face. Not only does it put undue stress, it could also lead to a number of unfavorable consequences. Although there may come unexpected pitfalls on the way, unless there is a major financial loss, companies like K5 Mortgage could help with preventing such circumstances in the first place. From managing finances to hunting for alternative lending options, these companies are equipped and experienced enough to help homeowners handle different mortgage situations.
There are various reasons a homeowner could have fallen into distress. While there are many distressed properties today as a result of the subprime crisis, the following factors, whether combined with a subprime loan or even a traditional 30 year mortgage or on their own, can cause a property and homeowner to become distressed.
Payment Increase or Mortgage Adjustment
Loss of Job
Damage to Property
Death of a Spouse
Death of family members
Mandatory Job Relocation
Insurance or Tax Increase
Too much debt
A hardship is defined as: A material change in the financial situation of a homeowner that is or will affect their ability to pay their mortgage.
If one of these hardships is something you have experienced, contact me and I’ll do what I can to help you right away!
What is a Short Sale?
This is a term that is being used more and more often in recent home sale and mortgage news, especially in the USA . A homeowner is ‘short’ selling their home when:
A borrower owes an amount on his property that when combined with closing costs and commission is higher than current market value.
A short sale occurs when:
A negotiation is entered into with the homeowner’s private mortgage company or companies to accept less than the full balance of the loan at closing. A buyer closes on the property and the property is ‘sold short’.
A short sale may be the best option for the homeowner in order to avoid foreclosure on their home. If you can, work with a professional who has the tools to adequately present your situation to the lender. Lenders are more responsive to a short sale situation today than ever before in the past.
It can be difficult to negotiate a short sale in Canada Because of the National Housing Act and our mortgage insurance System (CMHC and Genworth)
Reasons to Avoid Foreclosure
You will always have to disclose that you have had a foreclosure on any mortgage application and many job applications you submit in the future – this can have an adverse affect on your future mortgage rates. This is the only credit item that is asked for specifically and does not rely on what is on an individual’s credit report.
Credit scores will be lowered by 300+ points and a foreclosure is the most devastating credit issue you can have in relation to future credit availability.
A foreclosure is the one credit report item that is almost impossible to have ‘repaired’.
Your lender can seek a deficiency judgment against you and collect for any amount they do not recuperate at bank sale.
CMHC – Canada Mortgage and Housing Corp.(i.e. The Federal Governement) can seek a deficiency judgment against you and collect for any amount that is lost by the bank in the forclosure process.
Many employers run credit checks on prospective employees and foreclosure is one of the top items that will put a potential new hire in jeopardy.
Many current employers run credit checks and foreclosure can put a current position in jeopardy.
Security clearances and government positions, including but not limited to, military and law enforcement, can be jeopardized by a foreclosure.