We do not like to refer to “Distressed Properties”. These properties are owned by real people with real problems and concerns who need real help! Distressed Seller Situations can occur due to various reasons, including economic downturns, job loss, divorce, or unexpected expenses.

The properties may or may not be in poor condition but are facing financial hardship. These “situations” typically fall into four main categories:

In Default: These homeowners are generally at least 3 payments behind due to a job loss, medical situation or any situation that has financially burdened them and prevented them from making their mortgage payments.

This is a very critical time as this is generally when and where timely help is needed and accurate market information is vital to make a decision on how to proceed.

Do they work with the bank on a Modification? A Forbearance? A Short-sale?

Is there enough equity NOW to close a sale and allow the owners to start the next phase of their lives with peace of mind?

The role of an experienced Certified Distressed Property Expert at this stage is absolutely vital and can be the difference between walking away prudently or penniless! As C.D.P.Es our job is to keep you OUT of foreclosure and if possible, help you liquidate the property while you have equity, instead of a “Short Sale Situation” where you may end up owing the bank more than the property is worth..

Short Sale: In a short sale, the homeowner owes more on the mortgage than the current market value of the property. To avoid foreclosure, the lender agrees to accept less than the full amount owed on the loan. Short sales can be complex and time-consuming but offer a solution for homeowners to avoid foreclosure and minimize damage to their credit. Not an Ideal situation but it can be workable. Again, an agent with extensive knowledge of the market is crucial.

Foreclosure: When a homeowner defaults on their mortgage payments, the lender may seize the property through foreclosure proceedings. This can occur due to various reasons such as job loss, medical expenses, or other financial difficulties. By this time, there is nothing a C.D.P.E. agent can do to help you.

Bank-Owned (REO) Properties: If a property doesn’t sell at foreclosure auction, it becomes a bank-owned or real estate owned (REO) property. These properties are typically sold by the lender or bank at a discounted price to recover their losses.

As Realtors with C.D.P.E. designations, and years of experience specifically in this arena, we understand the challenges homeowners face in such situations and can offer several remedies to help minimize damage:

1. Market Analysis: I can provide a comprehensive market analysis to determine the property’s current value and assess its condition relative to comparable properties in the area.
2. Strategic Pricing: Pricing the property competitively is crucial to attract potential buyers, especially in distressed situations. I’ll work with the homeowner to set a price that reflects the property’s condition and market dynamics.
3. Strategic Marketing: We’ll leverage my marketing expertise to effectively promote the property to potential buyers, investors, and other real estate professionals. This may include targeted online marketing, networking, and showcasing the property’s potential.
4. Negotiation Skills: Negotiating with lenders, buyers, and other parties involved in the transaction is critical to achieving the best possible outcome for the homeowner. I’ll use my negotiation skills to secure favorable terms and minimize any potential losses.
5. Guidance Throughout the Process: I’ll provide guidance and support to the homeowner at every step of the process, from listing the property to closing the sale. This includes explaining legal and financial implications, coordinating inspections, and ensuring all necessary paperwork is completed accurately and on time.

Overall, our goal is to help homeowners navigate the challenges of distressed properties with minimal damage and achieve the best possible outcome given their circumstances.