Joe Baker's Real Estate Blog

As I've written before, a better portion of our market deals with Short Sales or REO/Foreclosure homes. Many agents are starting to work Short Sales because if they don't, they are cutting out a substantial market share. The local Association of Realtors has endorsed a program to get the designation of "CDPE." This stands for Certified Distressed Property Expert. Let me say that I've never gone for additional schooling in order to get a designation to put after my name. This one will be no exception. This class is teaching other Real Estate Agents to say that they are Certified Distressed Property Experts. In reality, I believe that they are creating a falsehood as to their experiences in dealing with Short Sales and are certainly providing poor information to the Seller of the transaction.

Nothing can be closer to the truth when dealing with Short Sales that experience matters. I've been working Short Sales for the better part of 4 years and have learned an immense amount of information that helps in day to day negotiations with the lenders. I've stated before that more than 95% of my business deals with Short Sale or REO/Foreclosure homes. It's not enough to just push paper and jump when the lender says to jump. It's not enough to have a "standard" package of information to send to a lender. Thought and effort needs to be put in place when correctly requesting a home to be sold via Short Sale. Knowledge will play a key role in determining if the Seller is on the hook for a deficiency balance or not.

I've heard time and time again that a CDPE agent has done "a" Short Sale with a particular lender so they are familiar with the processes. Well, no lender is black and white. Correct Short Sale negotiations will take into account of the type of mortgage (FHA/Conventional/Sub-Prime) and then will take into account who the actual investor is. One loan at Mortgage Company A could be the responsibility of one investor and another loan at the same Mortgage Company A could be backed by another investor. These investors are the ones that actually drive the bus. Mortgage Company A simply follows the rules and guidelines of the investor before it is actually approved. Unfortunately, the CDPE has been taught a process that can be followed similar to following a recipe card (Step 1…Step 2… and so on). Until the CDPE agents actually gain their knowledge from experience, they are not "Distressed Property Experts", they are just "Certified."

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