Regardless of what happens in Washington or on Wall Street, two things are very clear: you are not alone and now is the time to prepare for a new normal.

With a national epidemic of unemployment or underemployment, and 25 percent of the homeowners in the country owing more on their home than they could net for it in today’s market, homeownership for many has become a financial liability. Not being able to make payments on a home that you can’t afford to sell feels like an awful trap, but the fact is, there are solutions—and foreclosing on your mortgage is not one of them.

Loan modification is an option for many and banks are increasingly willing to negotiate short sales. In many cases, they’re offering sizable financial incentives to help financially strapped homeowners to get a fresh start on their lives.

As real estate professional who has achieved the Certified Distressed Property Expert (CDPE) designation, it is my mission to give homeowners the gift of a fresh start. 

Contact me TODAY and let’s get started.

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That’s all changed.  And it’s changed faster and to a greater extent than most real estate professionals ever could have imagined.

With a glut of bank-owned properties dragging down the recovery of the real estate market, as well as the national economy, major lenders are more eager than ever before to avoid foreclosure. So they’ve sharpened their focus on short sales. Big time.

The biggest lenders in the country have staffed up to ensure rapid processing of short sale applications. They’ve ponied up with cash incentives at closing for homeowners who pursue a short sale. And they’re proactively reaching out to CDPE agents and putting them in touch with delinquent borrowers.

This is big news and the media has not really caught on to it yet. What’s important for you to know is that whatever you’ve read or heard in the past about long lag times and frustrations with short sales is probably no longer the case.

As a member of the CDPEAdvanced community, I’m tapped into major lenders and on top of major developments affecting short sales and bank-owned properties.  I invite you to visit my website to learn more and feel free to contact me any time if you or anyone you know is struggling with an unmanageable mortgage.

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Weren’t we assured that home values were destined to go up and up and up?

There have been lots of promises that help is on the way—and lots of warnings of scams and schemes that have only served to confuse the matter. So where’s a homeowner who’s underwater or overleveraged to turn?

Here’s the bottom line: the choices that homeowners make when they feel they are at the end of their rope will have ramifications for years to come on their ability to qualify for credit, their job prospects, their security clearance and their overall finances. When a family’s financial trajectory is rapidly heading in a negative direction, there’s no substitute for the helping hand of a knowledgeable expert who has the integrity, the experience and the training to reverse the course—someone who is tapped into regulatory initiatives and can separate fact from fiction.

It is my mission to serve as a credible source of information and perspective to homeowners who have found themselves in a tough situation and need help sorting through their options. That’s why I sought out the Certified Distressed Property (CDPE) designation—the most renowned and recognized credential in the distressed property field, and it’s why I continue to stay on top of regulatory and industry developments that impact options available to homeowners who are struggling with their current financial situations.

My message to homeowners who do not know where to turn: there is hope. Foreclosure is not inevitable and neither the government nor your bank wants to see that happen. No one expected to find themselves on the brink of foreclosure, but I have worked with countless clients who have managed to turn their financial trajectory around and get on a path of financial recovery. 

It CAN be done! And it would be my privilege to help.

Free Resources at www.DistressedPropertyRelief.com

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As with anything there will always be room for improvement and HAFA won’t work perfectly in every situation, but the changes that have been made seem to be a step in the right direction.

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Too many homeowners don’t know their options in dealing with foreclosure. In most cases avoiding foreclosure is the best plan to creating financial stability in the future.

Millions of Americans feel alone and trapped by mortgage payments they can no longer afford. In fact, 27% of Americans with mortgages now owe more than what their home is worth. Geting educated on the alternatives to foreclosure can help in making sound decisions when facing foreclosure.

Education is key. The more distressed homeowners know about solutions, the more likely they are to overcome their financial challenges.

I can help with the education part – Short Sale / Foreclosure Resources

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The FBI reported a jump of 71% in mortgage relief fraud investigations from 2008-2009, and expects this number to have grown in 2010.

That’s why I am educating homeowners on the cautions they need to take, and what the government has recently done to protect you from unscrupulous individuals and companies who want to take advantage of their desperate situations.

What you need to watch out for if you are looking for mortgage relief assistance:

1. Upfront fees—just don’t pay them! In fact, they are now illegal!
2. A request to sign over your deed (this only spells trouble)
3. Lots of paperwork without the opportunity for review
4. The claim of government-affiliation

These are just a few red flags you need to be wary of. I’ve created a free report on the homepage of my website that details more of what you need to watch for.

If you are struggling with an unaffordable mortgage and are looking for help, educate yourself. These scammers can be very shrewd and will say almost anything to steal your money.

The Federal Trade Commission has required disclosures of anyone offering mortgage relief services. If you’d like to see an example, check out any of the pages of my website. If a company you are dealing with has not provided these disclosures, please ask why they are not compliant, and proceed with caution!

As a CDPE, you can trust that I have the tools to be in full compliance of FTC regulations, and will always work with your best interests at heart.

If you want viable alternatives to foreclosure, I’m always here to help!

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As a homeowner considering a short sale, it is important you understand the process. Following are some of the most common mistakes agents and homeowners make when handling a short sale.

Your Property is Priced Incorrectly

Mistake: Your Property is Priced Incorrectly
This is the most common mistake made with all properties, and the most common reason a property doesn’t sell.

Solution: Agent Providing Understanding and Transparency Your real estate agent will go through a detailed listing price strategy with you, allowing you to see exactly where your property should be priced based on its current condition, sales in your area, and most importantly, how much time you have left to sell.

Your Short Sale Packet is Incomplete

Mistake: Your Short Sale Packet is Incomplete
This is one of the most frequently seen causes for the rejection of short sales proposals. Most agents do not understand the short sale process and what your lender will be looking for.

Solution: Understand All Aspects of the Process
Your agent should understand the short sale process in detail and be able to explain it clearly. The agent should also be able to communicate effectively with both you and lenders to produce a complete and cohesive proposal.

There has been Inadequate Follow-up and Communication

Mistake: There has been Inadequate Follow-up and Communication
As your property goes through each stage of the short sale process, an agent can jeopardize the transaction by not properly communicating with everyone involved. As the homeowner, you may not know that your file has been delayed, and that you again may run out of time to close and avoid foreclosure.

Solution: Select an Agent With Experience
The right agent knows exactly how to follow up to ensure that your lender’s issues are addressed in a timely manner, and will make certain you do not have unnecessary delays.

Not Enough Time

Mistake: There Isn’t Enough Time
It is critical that your agent understands the foreclosure laws in your area. They should be able to show you an estimated timeline for the process, from start to closing. In addition, they should know how to communicate with your lender. Certain information can be provided to lenders to postpone your foreclosure for weeks or months in order to negotiate a sale.

Solution: Provide Accurate and Useful Information
Make sure you provide your agent accurate information as to exactly how many payments you have missed and any correspondence you have received from your lender. This will allow your agent to understand your situation and work to improve it.

Your Deal is Not Submitted Properly

Mistake: Your Deal is Not Submitted Properly
If you do not follow the directions you receive for submission, then you are expecting an over-worked, under-staffed department to go out of their way to handle your file. There is very little likelihood of this situation working out in your favor.

Solution: Follow Instructions Closely
If you are instructed to fax your file, fax it and send a backup copy in the mail. If you are instructed to mail two copies, mail two copies. When you reach the point of having a contract, all your information, and a completed proposal, you do not want your deal to fall apart because no one sees it.

The Buyer’s Offer is Too Low

Mistake: The Buyer’s Offer is Too Low
Many agents will encourage you to submit any offer that comes in. The reality is that a short sale is not the same as a fire sale. In order to have a legitimate chance of getting your deal approved, you must have an offer that is more attractive to the lender than a foreclosure.

Solution: Proper Negotiation
The right agent will work with you to properly negotiate any offer that you receive to get ‘highest and best’ from each potential buyer. This ensures you are presenting the best possible solution to your lender.

The Buyer’s Contract is Not Strong Enough

Mistake: The Buyer’s Contract is Not Strong Enough
Especially in our current economic climate, willingness to make an offer on a property does not mean that a buyer is truly qualified to purchase. The reality is that buyers need to be preapproved for financing, closing funds must be verified, and their ability to buy needs to be confirmed.

Solution: An Agent Familiar with Qualifying Buyers
Your agent should be familiar with what must be verified in order to qualify a buyer to submit an offer on your property. Otherwise, these offers may have little chance of closing. Don’t risk this process with an uneducated agent who does not appreciate this aspect of short sales.

In conclusion, While these mistakes may seem troublesome, the right agent can help you navigate your way to a successful closing. Don’t endanger your financial future and the potential sale of your home with an agent who does not fully understand the process.

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The Short Sale Solution

Lenders don’t want to foreclose and own your home and one of the most effective methods of foreclosure avoidance is the short sale. Lenders lose less in a short sale when compared to a foreclosure, and have been working hard with real estate agents to make this option more viable and efficient.

Short sales are increasingly becoming a popular alternative to foreclosure because they help minimize loss and the various harmful repercussions of foreclosures, such as damage to credit, security clearance, future employment, neighborhood value loss and disrepair.

Lenders Ramp up Staffing to Assist in Processing

If you thought you were alone in your financial struggles, think again. Over 2.5 million homeowners defaulted on their mortgages in 2010 due to unemployment or other unexpected challenges. Lenders are working hard to increase their resources in handling the sheer volume of defaulted mortgages across the country. We are in regular contact with these lenders and, as you can imagine, they’d like to avoid the high costs of foreclosure and facilitate as many alternatives as they possibly can. Lenders and the federal government have recently updated and enhanced their foreclosure avoidance programs, making more members of our community eligible for assistance.

Home Affordable Foreclosure Alternatives (HAFA)

In late December 2010, the Department of the Treasury updated and improved eligibility standards for the HAFA program. They also enhanced efficiency guidelines for lenders, streamlining the process and making it a more effective solution for homeowners to avoid foreclosure. HAFA is a federal initiative put in place to benefit homeowners who do not qualify for mortgage modifications and would like to pursue short sales. This program is designed to expedite foreclosure avoidance options for homeowners in need. HAFA promotes the swift execution of a short sale or deed-in-lieu through financial incentives to all parties involved, facilitating the transaction. In a deed-in-lieu of foreclosure, the property is given fully to the lender because the homeowner can no longer make payments, and the property is then sold to retrieve part of the loan balance owed. A deed-in-lieu, however, may have some of the same effects as foreclosure on your credit report.

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The NAR says Distressed homes are 36% of market -That’s a big number, and it is actually even bigger. The NAR number only counts transactions done through Realtors. Thousands of investors are buying property outside the traditional marketplace and that isn’t getting counted.

It’s apparent that distressed home sales will be a huge part of the market in 2011 and short sales will accelerate as banks have to start dumping their inventory of foreclosed homes (the “shadow inventory”).

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It’s common sense that lenders will be looking toward the short sale solution. Even though they are accepting less than is owed on the property, they lose far less than in a foreclosure sale. 

It may be a surprise to many that lenders actually want to work out a solution that benefits all parties. Oftentimes, the lender is seen as the villain in the situation. I’ve found that the lenders want to avoid foreclosure just as much as homeowners. The free, downloadable report on this website talks more about working with your lender, and details all the foreclosure alternatives available to you.

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