Frequently Asked Questions
Answers to common questions about CDPE agents, short sales, and getting help with distressed properties.
What is a CDPE agent?
A CDPE (Certified Distressed Property Expert) agent is a real estate professional who has completed specialized training to help homeowners facing foreclosure, short sales, or underwater mortgages. They understand the complex process of selling distressed properties and can negotiate with lenders on your behalf.
How much does it cost to work with a CDPE agent?
In most cases, working with a CDPE agent costs you nothing out of pocket. Like traditional real estate agents, CDPE agents are typically paid through the sale commission, which is paid by the seller at closing. In a short sale, the commission is usually approved by the lender as part of the transaction.
What is a short sale?
A short sale occurs when a homeowner sells their property for less than the amount owed on the mortgage. The lender agrees to accept the reduced amount as payment in full (or partial) satisfaction of the debt. Short sales can be an alternative to foreclosure that may cause less damage to your credit score.
How long does a short sale take?
Short sales typically take 3-6 months to complete, though some can take longer depending on the lender and complexity of the situation. A CDPE agent can help expedite the process by ensuring all paperwork is complete and following up with the lender regularly.
Will a short sale affect my credit score?
Yes, a short sale will impact your credit score, typically causing a drop of 85-160 points. However, this is generally less damaging than a foreclosure, which can drop your score by 200-300 points. Your credit can begin recovering sooner after a short sale than after a foreclosure.
Can I stay in my home during a short sale?
Yes, in most cases you can continue living in your home while the short sale is being processed. You may be asked to keep the property in good condition and allow showings. Once the sale closes, you will need to vacate by the agreed-upon date.
What is the difference between a short sale and foreclosure?
In a short sale, the homeowner proactively sells the property with lender approval, often resulting in less credit damage and a shorter waiting period before buying again. In a foreclosure, the lender takes possession of the home and sells it, which typically causes more severe credit damage and longer waiting periods for future home purchases.
How do I know if I qualify for a short sale?
You may qualify for a short sale if you owe more than your home is worth, you have a financial hardship (job loss, divorce, medical bills, etc.), you cannot afford your mortgage payments, and you do not have significant other assets. A CDPE agent can help you determine if you qualify and guide you through the process.
What documents do I need for a short sale?
Typically you will need: hardship letter explaining your situation, bank statements (2-3 months), pay stubs or proof of income, tax returns (2 years), listing agreement with your agent, HUD-1 or settlement statement, and comparable sales data. Your CDPE agent will help you gather and submit all required documentation.
Can I get relocation assistance with a short sale?
In some cases, yes. Some lenders and government programs offer relocation assistance (also called "cash for keys") to homeowners who complete a short sale. This can range from $3,000 to $30,000 depending on the program. Ask your CDPE agent about relocation assistance options available to you.
What if my home has multiple mortgages?
Short sales with multiple liens (second mortgages, home equity lines of credit) are more complex but still possible. Each lienholder must agree to the short sale terms. CDPE agents are trained to negotiate with multiple lenders to reach an agreement that allows the sale to proceed.
How do I find a CDPE agent near me?
Use our directory to find CDPE-certified agents in your area. Simply browse by state, then select your city to see available agents. You can contact agents directly through their phone, email, or website listed in our directory.
Still have questions?
Contact a CDPE agent in your area for personalized guidance on your situation.
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