Brian Solinsky of Keller Williams Realty Puyallup has earned the prestigious Certified Distressed Property Expert (CDPE) designation, having completed extensive training in foreclosure avoidance and short sales. This is invaluable expertise to offer at a time when the area is ravaged by “distressed” homes in the foreclosure process.

Short sales allow the cash-strapped seller to repay the mortgage at the price that the home sells for, even though it is lower than what is owed on the property. With plummeting property values, this can save many people from foreclosure and even bankruptcy. More and more lenders are willing to consider short sales because they are much less costly than foreclosures. 

In the Pierce County area, more than 1,000 homes are in danger of foreclosing. It is happening in all price ranges. Local experts say that even high-priced homes are not immune.

“This CDPE designation has been invaluable as I work with sellers and lenders on complicated short sales,” said Solinsky. “It is so rewarding to be able to help sellers save their homes from foreclosure.”

Alex Charfen, founder of the Distressed Property Institute in Boca Raton, Fla., said that Realtors® such as Brian with the CDPE designation have valuable training in short sales that can offer the homeowner much better alternatives to foreclosure, which virtually destroys the credit rating. These experts also may better understand market conditions and can help sellers through the emotional experience, he said.

The Distressed Property Institute opened in January 2008 and provides training on-site and online. The CDPE is the premier designation for Realtors helping homeowners in distress and handling short sales.

“Our goal is to educate as many people as possible so we can help as many homeowners as possible,” Charfen said.

For more information about CDPE designation or to find a certified distressed Realtor in your area, please call 1-800-482-0335.

The Solinsky Team is here to do all we can to help people stay in their home. In reality, homeowners have the following options when faced with financial difficulties involving house payments:

Option 1 – Refinance – always consider a refinance first

          Benefits: Current interest rates on a 30 year fixed rate mortgage are averaging around 5%-5.25%

          Drawbacks: Your home must appraise at a certain value and we are finding sometimes the current loan amount is greater than the home value, which will make it impossible to refinance unless you bring money to the table.

Option 2 – Loan Modification – take your current loan and adjust (modify) the terms

           Benefits: Stay in the home with little or no harm to your credit score. There are a number of ways to modify a loan, depending on your lender.

           Drawbacks: Loan Modification can be time-consuming and stressful as banks can be challenging to negotiate with. Sometimes lenders will modify the loan for a short time period, then it resets. Be wary of companies that charge a fee up-front for loan modification. 

Option 3 – Short Sale – sell the house with underlying lien holders approval to forgive a portion of what is owed.

           Benefits: Reduce the harm to your credit score. Avoid foreclosure.

          Drawbacks: You must move to a new location. Negative affect on credit.

I came across this article called Success with Short Sales at Realty Times.

** When the first two options are not available to clients, we then provide the option of a short sale.

Option 4 – Bankruptcy - file bankruptcy (talk with a bankruptcy attorney about benefits/drawbacks for you)

Option 5 – Foreclosure – bank “takes back” the home and attempts to sell at auction. If no sale at auction, it typically goes on the market as an REO (real estate owned) property. Bank owned.

At the Solinsky Team, we do all we can to help home owners avoid the last two options. We are finding more and more people are heading into difficulty with their mortgage payments due to ARMs resetting, job loss, medical situations, divorce, etc.

Once again the key is to get help early! Contact us for more information about how you can get help.

If you have other ideas that could help home owners, please submit your comments. The more homes we can save the better for everyone.