I was at a CDPE Certified Distressed Property Expert conference recently and the trainer said; “30% to 50% of all homes sold in the US in 2009 will be in short sale or foreclosure. He also said most home owners do not know where to turn for help so they end up in foreclosure because they wait to long to start seeking help. 7 out of 10 homes that go into foreclosure have not enlisted the services of a REALTOR to help them avoid the hardship of a foreclosure. Hopefully his percentages will not be that high in Raleigh since our real estate market did not have the large bubble that other real estate markets experienced. However, I know Raleigh real estate market will be affected significantly by the thousands of homes in foreclosure now and even more in short sale.
When working to avoid foreclosure pertinence is a must. The time investment in negotiating with the banks and the paperwork required is labor intense. Wells Fargo is reporting 15,000 short sale request per day. Imagine what the loss mitigation departments at mortgage companies look like today. In the past they had a desk with files stacked high. Now there have truck loads of short sale packages arriving daily. Which package do you think stays on top and is processed quickly and which ones fall to the bottom? The packages with accurate paperwork have the best chance of getting through.
If you find yourself or know someone who is struggling to make their house payments contact a REALTOR that has the CDPE designation, Certified Distressed Property Expert. These REALTORS have had advanced training and are equipped to show you the many options available to avoid foreclosure. Did you know one out of every ten homeowner’s are in mortgage default right now. That is a huge number and with unemployment increasing daily it will probably get worse before it gets better. We are all in very challenging times.
When buying or selling a foreclosure or short sale keep in mind you must have time and patience when negotiating with a bank to avoid foreclosure. If the bank receives correct paperwork that tells a compelling story, your sale could take 90 days or more to complete.
Here are very important items to include with your short sale package:
2 year tax returns
2 month bank statements
2 pay stubs or P&L if self employed
Signed offer to Purchase Contract
If you have any further questions or know of someone who is behind on their mortgage payments, I can help. My office number is 919-235-0007.
Hope you have a great weekend.