Questions?  Give us a call.  We’re here to help!

Laura is a Certified Distressed Property Expert (CDPE), which means she’s a member of a national organization of over 8,000 members that works with homeowners who are in distress. She can confidentially answer any questions you may have. We’re here to help.

Click here for a document detailing the qualifications for a short sale .

Due to the ever changing state of the market, we are always posting new links and information, so please check back often or contact us for specific information requests.

I am one of only a small group of Realtors nationwide who has achieved the CDPE (Certified Distressed Property Expert) designation. If you know someone who is in trouble, please call me. I can help.

Last month, the Obama administration, through the Making Home Affordable program, offered lenders and loan providers an incentive of up to $1,000 for each completed short sale, and up to $1,000 more to share the cost of paying any second-mortgage lenders to release their claim on the property. Homeowners too were offered up to $1,500 for relocation expenses.

The incentives offered by the government, coupled with lenders wanting to reduce bad loans, are likely to increase the number of short sale transactions in the near-future. “Without a doubt, lenders are more willing to work through short sales,” said Andre L. Mitchell, the executive vice president of the Lynx Mortgage Bank. “In this marketplace if the lenders can negotiate in any way to get rid of a bad loan, they’re going to do it.” Banks may lose less money in short sales than in foreclosures, where banks may carry the house for a considerable period of time before selling it.

Analysts believe short sales are often the  best option, even for homeowners thinking about a new loan to save the home. “It’s gotten to the point where people understand that sometimes you have to start over,” says Mitchell. “A loan modification might help you in the short term, but sometimes what people need to do is get out completely.”

[courtesy of Chris McLaughlin]

There was a crucial component missing in the original release of the program—second mortgages. About half of borrowers at risk have second loans that make it difficult to substantially lower their monthly payments from modifications to the primary mortgage.

With the new edition, lenders will receive additional incentives to modify these second loans, which include home equity loans. The borrower’s interest rate could go as low as 1% because the government will split the cost of the reduction with the bank. The program aims to help between 1–1.5 million additional homeowners keep their homes.

For more information, check out: http://makinghomeaffordable.gov/

– Where do I go to get help?
– Do I qualify?
– What lenders are participating?
– When can I apply?
– Why does my loan servicer have to ask if they can modify my loan?
– How do I know if refinancing will improve my ability to stay in my home?

Find all this information and more at www.MakingHomeAffordable.gov

You are not alone.

At Kittleman Realty Group, we understand that things happen. Whether through job loss, divorce, or mortgage rate resets, sometimes families can become overwhelmed by their obligations. There is a way out.

Click here or call 301.785.5889 to contact us today and ask for our Mortgage Relief Kit. We’ll send it to you immediately, along with instructions for getting started reclaiming your life.

Our kit is full of helpful information, as well as links to agencies and government programs where you can learn more.

Don’t just put your head in the sand and wait for foreclosure. There’s a way out! Contact us today!

Once the value of their home falls below what they owe on their mortgage, most people mistakenly assume that the only way out of that mortgage payment is to allow the home to go into foreclosure. There’s a much better alternative: the short sale.

A “short sale” involves your home being sold for a price less than what you owe on your mortgage (or mortgages). In order for you to sell your home without bringing money to the closing table, your lender must be willing to allow you to “sell short” and accept less money than you owe on the property as payment. This is also known as requiring “third party approval” – the buyer and seller are two parties in the transaction, and the bank is the third party who must allow the property title to transfer.

The most critical step to selling your home in a short sale is communicating with your real estate agent and your mortgage company. You will be required to document your hardship, fill out many forms, provide detailed financial information, and be persistent and patient throughout the process.

We can tell you, definitively, that you are better off selling your home in a short sale than allowing it to go into foreclosure. Here’s why.

1. While a foreclosure stays on your credit history for 7 to 10 years, a short sale is not reported on your credit history at all. There is no specific item to report a short sale, so the loans are typically marked “paid in full, settled” or “paid as negotiated.”

2. A foreclosure will lower your credit score anywhere from 250 to 300 points, and will continue to impact your credit score for over 3 years. A short sale may lower your credit score as little as 50 points if all other payments are current, and this affect may be as brief as 12 to 18 months.

3. If your home is foreclosed, you must disclose the fact on any future loan applications with mortgage companies. This could affect your future interest rates for 7 years. There is no similar disclosure for a short sale.

4. Foreclosure is a serious issue if you have a job requiring security clearance. A foreclosure on your record, in nearly all cases, will cause your clearance to be revoked and your position terminated. A short sale on its own does not affect most security clearances.

5. Many employers can legally require credit checks for their job applicants. A foreclosure is one of the most damaging items that can be found on your credit report, and may prevent your future employment in some positions. A short sale is not reported on your credit report and, therefore, not an issue to future employers.

It’s easy to see how a foreclosure can cost you much more in the long run than just losing your home. That’s why it’s important to work with a knowledgeable professional real estate agent to assess your situation, define your options, and work with you to avoid foreclosure. Look for an agent with the “Certified Distressed Property Expert” (CDPE) designation. That agent has the knowledge to safely guide you through the complicated short sale process.

In the long run, you’ll be happy you made that effort.

About the author: Laura Kittleman Yeatts is a professional real estate agent in Montgomery and Howard Counties, Maryland. She has obtained the Certified Distressed Property Expert (CDPE) designation, and is a graduate of “Default School,” an intensive training program covering short sales and foreclosures. Over the past year, Laura and her team have been involved in over 40 real estate transactions. She can be reached at 301-785-5889 or through her website at www.kittlemanrealtygroup.com.

[Author’s note: this article is based on information obtained from the Distressed Property Institute.]

Click on the link below to learn some of the key differences, and why a short sale is so much better for you and your financial life!

Foreclosure vs. Short Sale – Homeowner Consequences (PDF link)