The Bittinger Team, Realtors with RE/MAX Classic in Canton, MI, stay ahead of the pack in this topsy turvy Real Estate market by proficiently helping “distressed” homeowners avoid foreclosure by successfully navigating them through short sale procedures with their lenders.
Due to declining values and other reasons, the Real Estate market has literally been turned upside down with homeowners owing more on their homes than what those homes are worth. These distressed homeowners are confronted with the agonizing decision of how they should proceed… Foreclosure or Short Sale??
It’s no surprise that the Foreclosure and Short Sale process has caused much confusion in the community with homeowners and even with Realtors and Real Estate attorneys. “There is definitely more misinformation than information on this subject” states Kelly Adkins, Realtor with The Bittinger Team.
What is a Short Sale?
A “Short Sale” is a relatively new phrase to many homeowners, but this type of sale has been part of the real estate market for many years.
A homeowner is “short” when the homeowner owes an amount that when combined with closing costs and commission is higher than current market value.
A Short Sale occurs when a negotiation is entered into with the homeowner’s lender to accept less than the full balance of the loan at closing. A buyer closes on the property and the property is “sold short”.
With a successfully negotiated short sale the seller won’t get any money at closing, but they will avoid the emotional toll a foreclosure can cause. In addition, the seller won’t have to come to closing with any money and their credit won’t be destroyed.
This sounds easy enough, however it is an involved process that takes time, patience, good communication skills, organization and professionalism.
Every Realtor Member of the Bittinger Team; Lee Bittinger, Noel Bittinger, Kelly Adkins, LeaAnn Malmin and Debbie Louiselle has become a CERTIFIED DISTRESSED PROPERTY EXPERT (CDPE). This means they each understand the Short Sale and Foreclosure process thoroughly. They specialize in the sale of distressed properties and can assist both buyers and sellers. They can quickly assess any situation and be able to suggest which strategy is best for a homeowner to avoid foreclosure. Each agent attended an intensive two-day seminar and countless webinars to earn this kind of designation. They are 5 of only a handful of Realtors in the entire Detroit metropolitan area who hold this new designation. “We’re educating ourselves constantly because things are changing so fast.” said Noel Bittinger.
In addition to holding the CDPE designation, they have sold over 75 homes on short sale just in the past 1.5 years. It is invaluable to find a real estate agent who has the capability and knowledge to quickly sell your home in these devastating and heart-breaking situations.
“In today’s market, agents cannot simply place a for-sale sign in a front yard or hold a house open to sell a house” states Noel Bittinger. “Currently there is an increasing need for skilled and knowledgeable agents to work with homeowners who are in over their heads and want to make a short sale to avoid foreclosure or even bankruptcy. Unfortunately, many of the short sale transactions are being handled by untrained salespeople who are doing more harm than good because they are getting nowhere with the lenders. When you are dealing with financial distress, it is a totally different procedure. It is not longer about numbers, it is about saving lives. The Bittinger Team has the tools, information and tactics needed to help a distressed homeowner understand their options as they face the threat of foreclosure. Help means talking with lawyers and financial experts, and negotiating with the lenders who hold these troubled loans.”
“This is a very difficult time for these homeowners; they need more consulting and hand holding than the average homeowner. We help them understand the process and what their best options are. They don’t know where else to turn.” states Noel Bittinger.
“What they most appreciate is that our conversations about their personal situation are kept very confidential, as this is a very humbling experience for many.” said Lee Bittinger.
“When every other homeowner who was contacting us to list their home was in an upside down situation, we realized that we better get ourselves educated thoroughly on this process to help these families keep their credit clean by avoiding foreclosure.” states Lee.
“Much of the time, I don’t feel like a Realtor,” Noel said. “I feel more like a counselor and an accountant and an attorney all rolled into one. There’s a whole lot of crying going on out there with these struggling owners. They break your heart.”
To most agents a short sale is such a mysterious thing,” Lee says. “Most of the Realtors don’t want to bother with them because they’ve heard so many horror stories. They are basically afraid of them.”
A recent story, a Farmington Hills agent put an offer from a buyer and did not hear back from the bank for five months, tying up the deposit that long. Ultimately, the bank foreclosed. This was due to lack of proper follow up and incomplete paperwork. “It can take up to 60days for lenders to give final approval for a short sale”, Lee said. “It requires a ton of paperwork and it can be very frustrating for both buyer and seller.”
Another story is about an attorney who advised a distressed homeowner to declare bankruptcy rather than to go through a short sale or a foreclosure. “While bankruptcy may be a better option than foreclosure, it will still cause divesting damage to the homeowner’s credit report. It will stay on for years and many times it can lead to foreclosure anyhow. Upon analyzing this homeowner’s situation we determined that he is very qualified to do a short sale, yet his attorney actually told him that nobody should do a short sale.” States Lee.
Not every homeowner can do a short sale. Sellers must be able to demonstrate a financial hardship like job loss or mounting medical bills, etc.
“Many times, all this counseling and help ends up in no sale. But it’s a wonderful feeling knowing you have helped one more family stay in their home” said Lee.
The Bittinger Team is reaching out to all local families in distress. Call them today! They can quickly help get you on the right path to recovery for the future during these painful times.
The Bittinger Team
When Trust and Experience Matter
(734) 459-2600
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