There are several designations Real Estate Agents can have if they have received formal training in short sales. A few of the designations are CDPE or Certified Distressed Property Expert, CDRS or Certified Default Resolution Specialist, and SFR or Short Sale Foreclosure Resource.
A short sale occurs when you sell your home for less than the current market value. There are a few criteria that should be met for your lender to consider a short sale. There has to be some form of distress (this includes many different scenarios), you must be in default (which is not always necessary if default is imminent), and you have to have little or no equity in the house you are short selling with no liquid assets to cover the short (retirement accounts do not have to be used).
A short sale can help avoid foreclosure and is often the best choice only after the homeowner has exhausted other efforts in working with the lender to modify the mortgage to a more affordable payment. A short sale can still have negative effects on credit scores but they are thought to be less severe than a foreclosure would be. For example Fannie Mae guidelines allow you to buy a home as soon as 2 years after a short sale is recorded on your credit but not for 5 years after a foreclosure. If you are considering a short sale you should use a real estate agent that has been trained in short sales and is familiar with the process. For questions on short sales please text or call me a t 703 587 5403.
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