Mike Bryant, Realtor, CRS, CDPE

Since earning my certification as a CDPE (Certified Distressed property Expert), I have had pretty good success helping people get through the short sale process. It's hard to see someone lose their home, but most of the time it's much better than a foreclosure.

When meeting with clients, the first thing that I try to do is to contact the lenders on the client's behalf, and see if there's any hope for a loan modification. It requires the same amount of paperwork that a short sale does, and sadly, in most cases it just doesn't work. Usually, when the loan is converted to a conventional fixed rate from a previous interest only loan, the payment amount is very close to what they can't pay now. I am so happy to report that there are exceptions, and today was a wonderful day for one of my clients!

These folks had purchased their home back in 2004, paid top dollar, and also took advantage of one of the "creative" finance programs just becoming popular. Things were good; they paid their mortgage and even made some substantial improvements to their home. Their small business, a local restaurant, was doing great, and all was well.

Then the loan started to reset, the rate started going up, the economy went upside down, and now the restaurant was only doing 1/4 the business it had done in 2004-2005. All of a sudden they found themselves in trouble and didn't know what to do. They contacted several people and were told they were probably going to lose their home. Out of fear, they quit communicating with their lender and started to ignore the collection letters. When I met with them a little over a month ago, the situation looked pretty bleak.

They agreed to gather all the information I asked them to and even though they were in pre-foreclosure, the lender had not set a date for the sale of their home. I submitted their packet along with a very honest letter outlining their hardship, and today, Wachovia agreed to modify their mortgage! They are going to REDUCE the principal by 18%, and convert their adjustable loan to a 40 year fixed. The initial rate for the first year is only 3.5%, and it will increase in small amounts for the next four years, ending up at a fixed 5.5%. The payments will be affordable, and my clients get to keep their home! This is truly a win-win for everyone involved, and makes me feel incredible to be able to have helped them. They have tried to pay me over and over for my assistance, but like I told them, just send me all your friends and I'll be paid in full!!!

If I could offer any advice to homeowners that are having trouble, it would be to get some help right away, don't wait, and don't just ignore the situation and hope it will go away. There are definite alternatives to foreclosure, and most of them are a better choice!

I have just finished reading one of the most incredible and inspirational books that I have ever encountered, and I had to share it with all of you!

The books title is 3 Cups of Tea: One Man's Mission to Promote Peace...One School at a Time.It tells the story of Greg Mortenson, a mountain climber who was trying to scale K2 in 1993. After a failed attempt, he became lost on the return trip down the mountain, and was taken into a remote village in the mountains of Pakistan and nursed back to health. Here's a quote from Tom Brokaw after he heard about Greg and read his story;

Three Cups of Teais one of the most remarkable adventure stories of our time. Greg Mortenson's dangerous and difficult quest to build schools in the wildest parts of Pakistan and Afghanistan is not only a thrilling read, it's proof that one ordinary person, with the right combination of character and determination, really can change the world .' -Tom Brokaw

Do yourself a favor, and read this book. Here's a link to a Website that will give you much more information. http://www.threecupsoftea.com/ Needless to say I am a huge fan now and have put his Central Asia Institute http://www.threecupsoftea.com/how-to-help/intro-to-central-asia-institute/ on my list of giving for the next years to come. Please enjoy.

The California Association of Realtors recently published the following report that shows home sales in the state have shown a positive gain in numbers for the tenth straight month. Of greater significance, is the fact that the median home price has increased for the fourth straight month.

Locally, according to data published by respected Sonoma County appraiser Nick Dunlop, Dunlop Appraisal Services, Sonoma County's median home price has risen from $300,000 to $305,000, and sales are also up from 1171 during the first quarter, to 1464 in the second quarter, ending June 2009. This is the first positive increase in home prices for over a year, and has caused some economists to speculate that perhaps the worst is behind us.

Here's the C.A.R. summary report. Let me know if you'd like a copy of the full report and I'll email it to you.

C.A.R. reports sales increased 20.1 percent, price declined 26.4 percent
Home sales increased 20.1 percent in June in California compared with the same period a year ago, while the median price of an existing home declined 26.4 percent, according to a C.A.R. report released Monday. "Many first-time buyers, especially those who were previously priced out of certain areas, are realizing that tax credits from both the state and federal governments, increased affordability, and low interest rates are creating a prime time to purchase a home," said C.A.R. President James Liptak. "June marked the 10th consecutive month of positive sales gains, and the fourth month of rising median home prices. The statewide median price for existing condos increased for the third consecutive month in June, while sales climbed 27 percent compared with last year. Both of these trends are indicative of increased interest in condos on the part of first-time and other buyers."

Closed escrow sales of existing, single-family detached homes in California totaled 514,110 in June at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity increased 20.1 percent from the revised 427,910 sales pace recorded in June 2008. Sales in June 2009 decreased 6 percent compared with the previous month. The statewide sales figure represents what the total number of homes sold during 2009 would be if sales maintained the June pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The median price of an existing, single-family detached home in California during June 2009 was $274,740, a 26.4 percent decrease from the revised $373,100 median for June 2008, C.A.R. reported. The June 2009 median price rose 4.2 percent compared with May's $263,600 median price.

I just finished working with a great company, Prostep Marketing, www.prostepmarketing.com and they have helped me design and publish a new Website that is totally geared to the homeowner who may be in financial trouble and fears losing their home to foreclosure. http://www.avoidforeclosureinsonomacounty.com

This site has real answers and lots of tools to hopefully assist homeowners in distress with this most terrible of all situations. Designed around the ideals of the Distressed Property Institute, http://www.distressedpropertyinstitute.com/ this site stresses that the number one goal is to keep homeowners in their home, if at all possible. We first interview the homeowners and gather all the necessary financial information. We then contact their lenders to see if there is any possibility of the lender assisting with a loan modification or a refinancing. Only as a last resort do we then help the homeowner pursue a short sale, if it will be best for them. Believe it or not, some homeowners may be better off foreclosing, especially if there is a secondary or even tertiary lender that does not want to assist with the sale and forgive the debt. Homeowners are also encouraged to contact both legal and tax professionals prior to making a decision so that they have the very best information that enables them to make their decision on how to proceed.

I would recommend the CDPE training, http://www.cdpe.com/ to any Real Estate professional who is serious about wanting to help homeowners facing the foreclosure dilemma. The satisfaction I have received in helping clients work through these devastating problems has enriched me beyond my wildest dreams.

If you or someone you know is facing foreclosure, take a look at this Website and get the answers you need. http://www.avoidforeclosureinsonomacounty.com

Best of luck,

Mike

Last month, I went to San Francisco http://www.ci.sf.ca.us/and attended the yearly convention for CRS, the Council of Residential Specialists http://www.crs.com/ While there, I was fortunate enough to hear from a guest speaker, Alex Charfen, a co-founder of an organization called the Distressed Property Institute http://www.distressedpropertyinstitute.com/

Last week, I travelled to San Diego http://www.sandiego.gov/and attended the two day training program, earning the designation of CDPE, Certified Distressed Property Expert. I think the one core value that I brought with me both from first listening to Alex, and from this training, is expressed perfectly in their Website;

"The founders of the Distressed Property Institute 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. It is the goal of the Distressed Property Institute to give agents the tools and information they need to avoid foreclosure and move forward with their lives."

Distressed homeowners need an advocate that will act in their best interests and help them find the best solution to the financial crisis they are facing. I feel that this training has provided me with the tools and knowledge to give these distressed homeowners the expertise necessary to save their credit, relieve the uncertainty, and most of all, to help their family.

If you or someone you know has fallen behind and is in trouble with their mortgage, please contact me so we can confidentially discuss the situation and get started towards the path of recovery.