South Florida Real Estate and...

Katerina,  well said. We're just starting to see the Distressed property certification here and I've declined to attend for that reason. I'm looking forward to the next myth.  BTW, how is your buyer's agent doing?

Katerina, there really is a lot of confusion about the process in these parts.  We haven't seen enough inside the Beltway for the listing agents to have figured it out.  There quite a pain.  Grrrr!

My brokerage offered a "certification"  but it was a tad suspect simply because it seems as though the rules are changing so fast that NO ONE is truly an expert. Also, since they were so rare around these parts until recently, there are few true veterans from the trenches of THIS RECESSION. For example, everyone in my brokerage is saying you MUST BE BEHIND to be considered for a short sale. If not true, agents who say this are doing a huge disservice to their clients.  One of our brokers works on foreclosures, but all of this has been fairly rare around here until now and it does not necessarily translate into knowledge of short sales.   So I will be reading with avid attention.

I guess that there are a few entrepreneurial companies trying to capture business.  It is unfortunate since most of these certifications are not worth the paper they are printed on.

Hi Katerina - It's like that adage:  the only thing constant is change!  People who will tell you that all short sales must be this way or that way are usually dealing primarily or exclusively with just one bank.

Hi Katerina, There is so much confusion amoung agents about the short sale process. So many don't have a clue as to how to close these transactions successfully. We recently had short sale certification at my office. It was intense training w/ multiple exams (90% minimum required to pass). There was so much to go into I won't take an hour of your time here.  Be well.

Katerina... there always seems to be new rules and confusion when it comes to short sales. And I am sure it doesn't help when the people behind the scenes, that work for these banks, have no clue either... and or drag their feet.  And worse off is when people put false and or misleading information out there.

What about what you mentioned, that each bank does things differently. So I am sure that you do your homework and such, and have a list of who does what or who wants what. And from talking to you and Nestor and from reading your informational blogs, it certainly seems that you both know what you are doing... and at least keep up on the stuff.

 

Katerina, whenever someone tries to come across as a short sale know-it-all, telling us that "Banks always do blah, blah...." I know they don't know what they're talking about. Generalities don't mean anything here. You have to know what the particular bank you are dealing with does and THAT COULD CHANGE any day of the week. Can't wait to read your ebook!

i don't do short sales, but I did not know that.  you learn something new everyday

There's a law firm in Sacramento, Katerina, that is sending out literature advising potential short sale sellers to stop making their mortgage payments. I couldn't believe it! A law firm, of all things.

Great Post Katerina - It does seem like the rules are constantly changing. That's probably because there are no rules. They are being made up as those making a particular decision so choose.

Elizabeth- We have plenty of law firms around here who do the same thing, very sad, bad information! They tell them even other stuff that is not true and even worse. We have one that is now up on charges before the BAR.

Katerina - I am so tired of these classes everywhere, teaching and propagating misinformation.  Thanks for saying it.

Wendy- Thanks for letting me know you care too! I just got one of those emails telling me how they are going to teach us agents how to make big money in doing BPOs and Loan Mods. HUGH???? Like that is what I got into real estate years ago, to make the same that McDonalds pays? I don't think SOOOO!!!! And then the lies! They prey on real estate agents who are trying to make it in this market and that makes me gag!

Katerina & Nestor,

I was fortunate to work for a Broker that taught me mortgage origination and real estate sales.  This broker has been in the business for over 30 years and taught me what he learned about short pays during the Savings and Loans crisis. I understand this market is unlike anything this country has seen because of the Sub-Prime loan products.

I have been to several short sales seminars to continue to educate myself only to find out the instructor is a struggling Realtor with limited knowledge.  My wife and I attended the Certified Distressed Property Expert Course, which was taught by Alex and Cadey Charfen. I can honestly say this course is by far the most informative.  The course covers material that is essential to understanding the foreclosure & short sale process. As you pointed out, short sale procedures change daily and each lender makes the rules up as the go.  I believe there are Realtor's that don't retain or understand what they have been taught.  

What I like about CDPE is that we have a monthly update webinar with CDPE Realtors from across the nation.  We share our experiences with the different lenders to keep abreast with this ever changing process.  I respect the hard work you and Nestor have done and the education you share with us Activerainers.  I also believe the collective group of CDPE's share your desire to do the right thing for our clients.    

Hey folks,

Short Sale transactions are about the homeowner who is facing a permanent financial hardship.  Not about agents making a quick buck.  Real estate has never been about us.  It's about helping the consumer/client get what they need.  That's how we get what we need.

If you plan on surviving this shifted market and working this market of the moment the Certified Distressed Property Expert (CDPE) designation is a must have.  There is no shortage of fake Short Sale training out there.  I've taken many of them.  However, over 1,600 agents nationwide have acquired the CDPE designation in less than 14 months.  The classes are always packed and the response from agents is that "the CDPE training is the best training they've had in their entire real estate career"  You have nothing to lose by looking into this 2-day intensive course on helping distressed homeowners.  Visit www.cdpe.com for more information. 

Aaron Rice, CDPE, CRS, GRI, SHS

www.MarylandShortSaleTeam.com

 

I agree that there is alot of misinformation out there but I think you are missing the point. I started doing short sales early on in my area and worked with some consultants in FL to get though them. To say that all these courses are not worth taking is reckless. I did  talke the Certified Distressed Property Expert Course with Alex Charfen and I have to say that it has completely changed the way that I work with potential Short Sale candidates. I am much more knoweledgeable about the process and that is conveyed to my clients. It has also given me the tools and knowledge to cut down the process time by months.I have been even been able to avoid a couple of short sales for my clients because I learned about a multitude of other options taught in the course. The course is not a one time fix. It has monthly update calls and e-mails because this is a changing process and the banks are all different.  It is crucial that all agents get educated on this process as soon as possible and keep on top of changes. We are supposed to be Real Estate experts, right? I have taken a few distressed property courses and the CDPE was by far the most comprehensive. So I would reccomend to everyone to get as much education on this subject as possible because waitng around for Katerina to post Myth #2,#3,#4,#5 isn't going to do you, your client, the banks, or the housing market any good. Don't knock a course you haven't taken.

NESTOR & KATERINA,

I agree with most of what you posted. It has become quite a chore to navigate through all the new Short Sale classes popping up that are just there to make a buck with photocopied documents and rudemantary explanation of Short Sales. It is a moving target and the lenders change their tactics on a regular basis BUT there still needs to be knowledge on the theories of the process. There still needs be an understanding of the reasons towards why a lender will make certain moves or demand certain concessions. Since you seem to have a grasp on the Short Sale process I'm sure the ebook you're trying to sell is geared towards that fact. You mentioned the Certified Distressed Property Expert and I'd like to invite you to take the class and I will give you and your readers a 100% Money Back Guarantee. If you take the class and don't think it is the worthy they will reimburse your money after you take the class. They also have a monthly webinar, after you graduate, with other CDPE's to go over the latest trends of the lenders and get updates on the market. It's not just a educational event, we become family.

I will leave you the CDPE schedule and hope you'd take the offer. The more we can get knowledgeable agents together working towards the common cause of helping homeonwers the quicker we can turn this market around. I hope you can offer me the same guarantee with your ebook, I must be a good read. None of us ever stop learning.

Do I need to sign up any where to get updates of the ebook as the market changes?

Become a CDPE Today

Schedule Your Class

HI everyone! I just want to say how nice it is to see so much knowledge and etiquette on a single post. What a joy. :-) I am also really happy to see someone busting the myths about short sales. There are so many out there and they are coming from CPA's, attorney's, and unfortunately Realtors. Each short sale is as different as it's ingredients...the buyer, the seller, the seller's hardship, the seller's financial position, the appraiser/BPO servicer, the negotiator, the lender, the investor, and maybe the MI company. There is ALOT to know. I think we are ALL on a learning curve. I think THEY are on a learning curve. As I run into Realtos who are unaware I choose, rather than ever put another Realtor down or use their lack of knowledge as an example, to educate them so next time they do know. Having said that, I also encourage them to attend the CDPE course. It is more important than ever to have a "working knowledge" of the ENTIRE PROCESS not only a step by step. What are the numbers? Where are we headed? What are they doing today? What is our government looking at doing? What do I do to best serve my clients? I am a real estate Broker. I have taken it. Every agent in my office has taken it. We are all succussfully completing short sales. I was successfully completing them prior to the course but I cannot even begin to tell you the difference. I KNOW my agents have benefited immensely. Their confidence level is up because they now have a working knowledge of the entire process AND a place to go when they have a question. They are able to help more homeowners. Our clients benefit. While Realtors may or may not know what they are doing, it is the client who suffers this. I believe this is the best time ever to be a Realtor! We have an opportunity here to rise up, be knowledgeable, professional, and unified to help pull the homeowners, the financial institutions, and our country out of this mess. I highly recommend this course to each and every one of you. The benefits are endless. If you are already knowledgeable and experienced, please join this organization and let's make a difference together. We need you. It is not only the extensive knowledge you gain but also banning together. It is going to take ALL of us. Our profession deserves it, the homeowner's deserve it, and our country deserves it. I look forward to the other myth busting and the EBOOK. Keep up the great work. Christina Henley, GRI, CRS, CDPE Broker/Owner Solid Rock Realty Solid Rock Mortgage 954-290-2772 "Your Boutique Realty providing Concierge Service"

Cracking up...I may be able to negotiate a short sale but maybe I need to get one of you guys to teach me how to make paragraphs on Active Rain. 

So sorry.

 

 

I say that any agent that is smart enough to take the time to educate themselves is bettering themselves and the community they represent.  If they are indeed that smart then they will inevitably realise what classes were crap and which weren't.  Having done the afore by myself I find that the CDPE designation to be the strongest most complete, most professional brand out there - not just for the organic content, but the constant legal and industry updates not only that but for the fact their mission is to save homeowners and to only do a short sale as a last resort - not as the first angle of attack for a quick sale.

 

While I appreciate the comments and the attempt to communicate the message of realtor and seller beware - before you make a statement make sure you do your research and be more objective after all there really are short sale experts on active rain and being a CDPE makes me one!

Aaron Rice - You said- "If you plan on surviving this shifted market and working this market of the moment the Certified Distressed Property Expert (CDPE) designation is a must have. "

I could not DISAGREE with you more on this statement. I got my license when Jimmy Carter was President in a much worse recession than we are in now. Nestor got his license in Texas and his first deal was a short sale. We have been doing short sales for years, Nestor many since 1995.

We are doing a phenominal business in ground zero in FLORIDA of all places and as part of that, in Port St Lucie as well which has the third most foreclosure filings in the entire United States.

I don't believe in designations making a realtor a better realtor or more proficient. The course itself may be excellent but if the agent can not comprehend information or retain or pay attention or a million other things the course is not going to make a difference.

I coach top agents around the country who do not even belong to NAR or their state boards much less have any designations or certifications and they are doing great in this market and through other recessions.

I have met agents here inour market who have Certified Distressed Property Designations and still do not know how to do a short sale.

 

To all of you that have come to the defense of designations- you are entitled to your opinion as I am to mine.

I don't need to have a designation or certification to be a short sale expert. The fact is we are busy closing short sales and hiring new office staff to help close even more.

I have written a book about how to do short sales for sellers and for agents. I have coached agents one on one on how to complete short sales and some of those agents happen to have already earned the designation and still had to hire me to fully understand the process and how to do a short sale. I also read on Active Rain misinformation about short sales from those with the designation as well. Katerina

 

KATERINA,

Most of the people that posted on this blog agreed with you. I don't think anyone attacked your knowledge of the market and short sales or ever suggested that you were in NEED of more education. This forum was created to share and learn from each other, to completely disregard an entire segment of education, that you may not need because of your experience, seems irresponsible. The problem here is that is seems you packaged all education in the same bundle and used the Certified Distressed Property Expert as their title. Most other CDPE's in this blog wanted to let everyone know that they have found value in the education they received and now have a much better understanding of the process. Please don't attack when you don't have full information or don't bundle all education in the same package. It is not fair and it seems spiteful, especially when you will be joining the education crowd by publishing your own ebook.

Good luck to you and keep helping those homeowners in Port St. Lucie.

Sidney- Perhaps I am defensive, I am known for that:) I have the highest respect for Keller Williams, the red book is my real estate bible. If I were ever to be in a real estate company that is not my own again, I would choose KW. Hands down. No questions about it. And I am sure that anything that KW endorses has value or else they would not be promoting it unlike the NAR and state and Local boards.

I should have singled out the comments that I had issue with instead of bunched them together. For that I am sorry. Your comment was not negative in any way. Thanks for clarifying your feelings on the matter. Katerina

KATERINA,

We all need each other to survive and in the end I believe you and the many graduates of the CDPE have a common goal and that is to help the homeowners that are in need. You and Nestor definitely have an obvious passion for what you do as we have that same passion. All we ask is that you try to separate the true educational programs that are trying to instill the proper way to help the homeowners in need.

The CDPE has worked very hard to distinguish itself from the rest of the pack. We are now recognized by the FAR and CAR, two of the hardest hit areas in the country. We are also working in partnership with Keller Williams and Re/Max and have the endorsements of Howard Brinton and his STAR POWER organization. You are a coach, so I believe you know the Corcoran Coaching Co., well, they are also behind our efforts. We are not a fly in the night operation and keep in mind that many areas have different rules and laws and what can work here will not work elsewhere. That is something to keep mindful when you see some of the posts, they may be wrong for us--but it might be right where they are.

I want to thank you and Nestor because we need that passion and knowledge to help the homeowners that count on us. Let's extend out hands and work together towards that common goal and not package all education in the same box.

Katerina - I learned like you did.  I started my career in the late 80's, in fact, right after the stock market crashed.  I was in Connecticut, and it was not uncommon for my sellers to be upside-down, bringing money to closing or doing a short sale.  When the market changed a couple of years ago, my career skills and experience with short sales have helped me become the pre-eminent short sale specialist on the Emerald Coast.  I am humbled and honored when real estate agents in my own area list their own personal short sales with me and refer their clients to me.  I have not taken one of the dozens of short sale courses in my area.  I hear so much mis-information from agents who do.  I am certainly not saying courses are bad, but I find that some of those who take them think they are the gospel on how short sales are done.  You have my sincerest respect as one of the top agents in the country.  I read your blogs regularly, and there is no doubt you know what you are doing.  Your insight has taught and inspired many to know more and be better.

You do not need to be a CDPE to be an expert in short sales. That is true.  However, we have formed an excusive membership organization thats members share a common goal of helping as many families out of foreclosure that we can.  This can not be knocked at all.  This is a great group of people who when they put to use all of the great things they learned in this course, can make a change in this world.  

I learned so much from this course that it actually helped my traditional real estate as well.  Alex and Cadey Charfen are genuine, caring people.  All that they want is to help real estate professionals help homeowners.  They should only get praise for what they do.  

To everyone that does not believe in the CDPE, it's ok.  We will still push on and make a change!

Wendy- Thank you for your support. You look to me as I look to you. You are very professional and care about your clients, the homeowners. You go the extra mile and don't give up on them and neither do we. I appreciate your comment very much.

My take on training is that it is always good to hear information and strategies about what you love doing. Maybe you take a piece of information and tweak it to fit your strategy. I also believe it is good to surround yourself with others who are in the trenches to compare notes. Lenders are getting smarter and the days of easily getting approval letters that could be applied to any buyer are almost gone. They are also changing their policies based on the new changes in the banking industry. That's why I like websites like Active Rain. For example, 2 of my short sales last week got rejected the very next day by BofA as a 2nd lien holder because they believed the purchase offer price was too low even though they didn't do a BPO and their estimated value was still short of the payoff of the first. I posted this on Active Rain and one experienced short sale Realtor told me how to over come that issue.

Because this post targeted CDPE, I would be interested in knowing what the core strategies are for the CDPE course. Such as how to list the property, what offer or offers to present to the lender, handling the BPO, etc. to pass judgement or express opinion.

 

AMIRI,

The CDPE is a full course that goes over all the aspects of a Distressed Property. It starts with the history of how we got here and show comparisons of when this has happened before. Before we go over Short Sale we discuss all the other options the homeowner may have that could keep them in their home, with a Short Sale being almost the last resort. We also go over all the pros and cons of each solution as to be able to answer most questions within our means. The remainder of the course focuses on how to qualify the homeowners and see if they are a good candidate for a short sale and how to prepare for an approval starting from the minute you sit at the table and sign the listing agreement. It covers pricing strategies, BPO, lender objections and how to avoid them, what lenders are looking for, how to put together the most comprehensive package, systems to keep in touch with the lenders, systems to keep all the paperwork, they give you all the forms 9plus any updated forms after you earn the designation. In short (no pun intended), it is a complete overview of the entire process from the history to beyond the closing table.

If that wasn't enough, every CDPE can participate in monthly webinars and conference calls as we go over all the new data and strategies as the lenders adjust theirs. We go over marketing ideas, new ways to streamline the process and soon there will be a National website so we can contact each for support and referrals.

As a matter of clearance, I don't believe Nestor and Katerina were focused specifically on the CDPE but organizations like it in the Short Sale education forum.

Become a CDPE Today

Schedule Your Class

I love you too, Wendy.

Hi Sidney, can you give me an example of:

"It covers pricing strategies",  "BPO" and "lender objections and how to avoid them"

Is the pricing strategy to list at the high end of comps and a general reduction based on a timeframe?

What do they suggest for the BPO?

Do you have an example of a common lender objection and how to overcome it?

The other points, such as looking at the big picture and offerring other solutions is a must. Real estate isn't about buying and selling homes, it is about providing a solution to a situation. Any training that mentions this sounds good so far!

Sidney - I DO think you are great!   Not referring to you :)

Kat, Wendy, Amiri and Sidney.

I would like to say, I am proud to be among true professionals who really care about helping homeowners and are willing to go the extra mile to do what ever it takes to save someone from foreclosure.  2 1/2 years ago I transitioned into Real Estate from a law enforcement career.  I was blessed to work for a broker who cared as much as all of you do about doing whats best for the client.  I truly believe if professionals band together and share their collective knowledge we all will get through this mess.

What I've experienced here in California is Realtors are killing short sale deals by submitting unrealistic and multi offers.  I list at the high end of the comps and reduce the price every 10 days till we get an offer.  I  also require my clients to pay for an appraisal, home inspection, termite inspection and termite repairs.  The appraisal is submitted with my short sale proposal and is provided along with a CMA to the individual completing the BPO, I'm at every BPO unless the lender does a drive by.

I know this sounds expensive but my clients are receptive to my education and understand the pitfalls associated with closing these types of transactions.    

You all sound like you should be instructors for CDPE.

 

SATAR,

I'll call you to answer your questions. I don't want to take over Nestor and Katerina's blog with this matter. I hope you understand.

Become a CDPE Today

Schedule Your Class

There's an agent in California who markets herself as a "short sale expert".  Know what she does?  Sends a threatening letter to the mortgage company saying she will go to the media if they don't approve her short sale.  Same letter.  Over and over.  Now she's marketing her "secret" to other agents.  Katerina, you are so right....there a so many "experts" who are completely clueless doing short sales.

Tina in Virginia

Tina- Thank you for scrolling down through all the comments to make yours. I appreciate you!

Sidney - no problem and thanks.

Tina - That's crazy. I'm sure the people making $8/hr in South Carolina processing short sale request have a ball with those letters. I did save a few short sales, that were being rejected because of some type of company or investor policy was being violated, by writing a letter to the CEO or department heads. However I was being non-threatening and just explained the situation (and kissed major a**).

Gary - If I ever have anyone from your neck of the woods contact me, I'll send them your way. Also, did you ever consider doing a BPO yourself and giving it to the bank's BPO with the MLS print outs of the comps you used? It saves on having your clients to pay for an appraisal. Also, you might just have your buyers pay for the other costs. If anything, my clients benefit from a short sale, which motivates them to work with me.

Katerina - Nice topic. It started some great conversation.

We would love to put some offers in on a few shortsale homes in west palm, we have a few were looking at there now. great article 

Thanks for the great information!  I can definitely see the benefit of timing a late payment; if that was the lender requires.  If they only want a 30-day late; there is a key to have a schedule of when you think an offer will come in!

JAMES,

Be careful to never tell a client to miss a payment, there's a great liability there.

Hi James - I agree with Sidney. Some lenders, like Wellsfargo, will let you do a short sale while current. It's always best to contact your client's lender and see what can be done to best represent them.

Good Luck

I'm a little cynical about designations but the agents who are supportive of the CDPE have credibility. I will check the designation out.

That said, for me it is all about the results and not the badge.

Everyone- While I invite open discussion on my blog, I also ask that everyone follow Active Rain community guidelines. This post is about myth #1 and was really for the general public and is not a members only post. Please remove any sales like material and recomendations of programs that are for agents. Also, please refrain from adding links within your comments as this is a post for me and Nestor to get sellers to call us to list their short sales.

It was not my intention to have my post diverted to a sales pitch on designations or to give that option here on this post.

The point about the designation is that just because you have a designation does not make you a pro. The point was that people with designations are telling sellers that they have to miss payments to do a short sale.

If your comment does not support this thread, please remove your links and your comment so that the sellers in our area do not get confused. Thank you. You are more than free to write your own posts and link to mine as your point of contention or disagreement.

Everyone- While I invite open discussion on my blog, I also ask that everyone follow Active Rain community guidelines. This post is about myth #1 and was really for the general public and is not a members only post. Please remove any sales like material and recomendations of programs that are for agents. Also, please refrain from adding links within your comments as this is a post for me and Nestor to get sellers to call us to list their short sales.

It was not my intention to have my post diverted to a sales pitch on designations or to give that option here on this post.

The point about the designation is that just because you have a designation does not make you a pro. The point was that people with designations are telling sellers that they have to miss payments to do a short sale.

If your comment does not support this thread, please remove your links and your comment so that the sellers in our area do not get confused. Thank you. You are more than free to write your own posts and link to mine as your point of contention or disagreement.

KATERINA,

I understand your standing on this, but I would also like to point out that you specifically made a statement about Certified Distressed Property education and your belief on that issue. In order to comply with your own wishes of not confusing your readers I would suggest you amend your use of that terminology to something less specific to a national course currently being taught with great success, which is the Certified Distressed Property Expert designation. Without proper debate, as we have, the public and other agents can confuse all education to that specific course, which is unfair.

I would be more than happy to delete my posts, if you argree to not use the "Certified Distressed Property" as an example to your beliefs on the subject.

Sidney, it doesn't matter what you say. The follwoing sums it up "Also, please refrain from adding links within your comments as this is a post for me and Nestor to get sellers to call us to list their short sales."

When one is being disingenuous, then debate and fact on a topic is useless.

  

  

I learn something new every day here.  I am wondering what the law in Maryland is.