As a Certified Distressed Property Expert (CDPE) I have experience helping Sellers avoid Foreclosure, and Buyers navigate through the tedious process of buying bank-owned properties.

The Foreclosure Epidemic

Pete Aplikowski, Associate Broker with RE/MAX Results  has completed the rigorous training program and has received the designation of "Certified Distressed Property Expert" (CDPE) To help families avoid foreclosure.  Pete attended this tarining at an event in Orlando, Florida, where he learned first hand from experineced agents and trainers who have helped hundreds of families avoid foreclosure.  Florida is one of the markets that is "ground zero" in the foreclosure wave sweeping the country.

The training is a 21+ hour course designed to help Realtors counsel homeowners, and help families avoid foreclosure. The developers of the CDPE program had this to say about this designation:

The Developers of the Certified Distressed Property Expert Designation (CDPE) believe that in almost all cases the best person for a homeowner in distress to speak with is a well informed Licensed Realtor® that has the tools needed to help that homeowner find the best solution for their situation.

Foreclosure is a devastating financial and emotional process for a homeowner to go through, and in many cases they do so alone and without help of any kind.

An Agent who has earned the CDPE Designation has dedicated their time and effort to understanding the issues distressed homeowners are dealing with. The CDPE Professional is an agent who understands the full range of solutions and is ready to help.

While experiencing financial distress is difficult for any family, the process of finding a real estate professional shouldn't be, Selecting a CDPE agent ensures you are dealing with a professional ready to address your needs.

1. After foreclosure, a person will always have to disclose the foreclosure on any new application for credit or employment you submit in the future. This is the only credit item that is asked about specifically and does not rely on just what is on someone’s credit report.
2. A person’s credit score will be lowered 300-350 points. A Foreclosure is the most devastating credit issue a person can have in relation to future credit availability. A mortgage satisfied by a short sale is usually reported as “paid as agreed” to the credit bureaus, and only any missed or late payments will show on your credit report. A short sale may impact your credit score as little as 50 points.
3. A foreclosure is the one credit report item that is almost impossible to have “repaired”, and will show up for 10 years or more on a person’s credit history.
4. Many employers run credit checks on new hires, and a foreclosure can even put your current job in Jeopardy, as some employers run periodic credit checks on their employees. A foreclosure in many cases is grounds for immediate reassignment or termination.
5. A person with a security clearance as part of their employment with the military, law enforcement, or government work can have that clearance jeopardized by a foreclosure. A foreclosure is the most challenging issue against a security clearance outside of a gross misdemeanor or felony.
6.  A homeowner who loses a home to foreclosure will be ineligible for a Fannie Mae backed mortgage for a period of 5 years minimum. A homeowner who successfully negotiates a short sale will be eligible in as little as 2 years.
7.  On the standard 1003 form for mortgage application, a borrower with a foreclosure will have to answer “yes” to question C that asks “have you ever had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?” There is no similar question regarding a short sale.
8. Most people panic when served with foreclosure papers. 7 out of 10 distressed homeowners never ask for professional help. Minnesota law allows for a 6 month redemption period after foreclosure notification to find a workable solution like a short sale with the lender. There may be even more time than that in certain cases.
9. We are certified Distressed Property Experts. We are here to help people make informed decisions about their options during foreclosure. Help is only a phone call away.
10. The approach of denial and burying one’s head in the sand is the wrong approach in foreclosure. A person will feel much better if they know that they took logical steps to avoid the end results of a foreclosure.

1. Working directly with the agent that is representing the bank. These agents typically handle dozens of listings at any given time and do not have the time or attention to devote to represent you properly.
2. Being led to believe that listings for foreclosed homes are only obtained through signing up for or buying lists from certain companies. All bank owned homes that are ready for sale are listed with Realtors and show up on the regular multiple listing service. You can find them all on our website’s search function.
3. Not allowing enough time for the transaction to be complete. Bank owned transactions take 2-3 times longer than a privately owned home sale.
4. Not being pre-approved for financing. An offer made without a proper loan approval credentials will never make it to a bank’s asset manager for a decision. You may spend weeks waiting for a response to your offer when in fact it was never even presented to the bank.
5. Not getting data about recent comparable sales in the area, to arrive at a fair offering price.
6. Underestimating the cost of repairs. Most bank owned homes are in disrepair and need significant work to be habitable.
7. Not making the offer to purchase contingent on a thorough home inspection. While some cities have inspection requirements for basic code compliance, these inspection are not detailed enough to uncover major flaws that some bank owned homes have.
8. Being led to believe that you MUST take out your new financing with the bank that owns the home. Some agents & banks will try to make you believe this, but this is not legal.
9. Having unrealistic expectations about the price the bank will accept. Depending on the location, circumstances & condition, even bank owned homes can sometimes sell at or near prices of non bank-owned homes.
10. Getting too focused on one particular house. While waiting for an answer from the bank on your offer, there may be new & better opportunities that present themselves in the marketplace that you should act on and perhaps withdraw your first offer. The best home for you & your family may not even be a bank-owned home, as there are plenty of good, well priced privately owned homes on the market as well.