A San Jose Certified Distressed Property Expert is a real estate agent trained to help homeowners avoid foreclosure. A Certified Distressed Property Expert, or CDPE has specialized training with the complex issues confronting distressed home owners. Foreclosure avoidance options available to homeowners. Through comprehensive training and experience, CDPEs are able to provide solutions for homeowners facing hardships in today’s market, specifically short sales. Are you behind on your house payments? Are you facing Foreclosure, Pre-Foreclosure or Notices of Default from your lender? You may be surprised at the options available to you. You might not have to walk away from your home! There is hope… How can a CDPE help you in the sale of your home? Short Sales and REO in San Jose San Jose has many homes available through the Short Sale and REO process. Without specialized knowledge about how to handle the purchase of a foreclosure, short sale or REO, you could find yourself in dangerous territory. While many short sales are foreclosures, not all foreclosures are short sales and not every short sale is in foreclosure. To further complicate matters, REOs are not short sales either, but some intended short sales can end up as an REO. There’s a lot of confusion in the media on whether a short sale is truly better for a homeowner than a foreclosure. To find the answers, let’s take a closer look at Short Sale vs. Foreclosure. Short Sale vs. Foreclosure

• A short sale is a voluntary process., where the homeowner sells the property for an amount less than what is owed on the mortgage.
• A foreclosure is involuntary, where the lender takes legal action to seize the home. The lender takes ownership of the home and sells it to recover the amount owed to them.
• The ability to obtain a Mortgage in the future.
• The effect on Credit Score, and credit history.
• Possible effects on Security Clearances in a variety of industries.
• The Effect on Current and Future Employment.
• Deficiency Judgement. What rights does a lender have to pursue a deficiency balance in short sale and in foreclosure?

#1: The Ability to Obtain a Mortgage in the Future. In Foreclosure: San Jose homeowners may have to wait up to seven years to qualify for a new home loan. In Short Sale: A homeowner may be able to qualify for a Fannie Mae backed loan in only two years, as long as they are able to meet loan criteria. If a homeowner who did the short sale meets certain eligibility requirements, they can buy a home within two years with even less loan criteria. #2 The effect on Credit Score, and Credit History. This is one of the most widely debated topics surrounding short sales and foreclosures. Some have made the unfortunate argument that there’s no difference in the effect on a credit score regardless of whether the homeowners short sale or allow a home to foreclose. While no one’s credit profile is exactly the same, the short sale will almost always have less of an effect on credit score decline than a foreclosure. In fact, it can affect an individual’s credit score as little as 50 points, as all other credit installments are being paid. And, in some anecdotal cases, there’s been little or no effect on a credit score in a short sale. Another benefit for credit and short sales is that if it is reported as Paid As Agreed or Paid as Negotiated it usually remains on a homeowners record for 2-3 years. Foreclosure is recorded, in no uncertain terms, on a credit report, remains in credit history for 7 years and is part of permanent public record. #3 Possible effects on Security Clearances in a Variety of Industries. While it may not be as common, there are a significant number of homeowners whose employment involves some sort of security clearance or security check. Foreclosures almost always have a negative effect on security clearances. On their own, short sales will rarely challenge most security clearances. Many people don’t understand that security clearances today are required in a variety of industries, not only military. For example, high level police, fire department, government agencies, software development agencies, certain areas of telecom and much, much more, all require security clearances or security checks. #4 The Effect on Current and Future Employment. This may be the single most important issue to many homeowners today. As more and more employers review credit upon employment of a new hire and do continuous credit checks on employees, a foreclosure may have adverse effects on a very important part of everyone’s life, either getting a job or keeping a job. Short Sales are not recorded on a Credit Report and therefore, on their own, do not specifically challenge employment. #5 Deficiency Judgement. What rights does a lender have to pursue a deficiency balance in short sale and in foreclosure? There may be nothing more stressful than losing a home — other than the prospect of a lender demanding payment for amounts owed for the rest of a homeowner’s life, even after foreclosure. In a short sale, a homeowner has the opportunity to negotiate or completely eliminate a deficiency judgment. When a property goes into foreclosure, this right is forfeited in most states and a lender has the ability to pursue a deficiency judgment. If you live in our near San Jose, please reach out to us by clicking the contact link below.