Dealing with Foreclosure

Unfortunately, a national foreclosure crisis has been going on in the US. About 20% of homes that were facing foreclosure, 10% of them have been sold by a short sale. When a property is in foreclosure, the homeowner can avoid experiencing further financial consequences by selling his property for less than he owed. If you are looking for an expert that can come to your aid, Maryland Short Sale is a premiere short sale specialist in MD. Due to the fall in property values in the last few years, many homeowners are now "upside down" in their mortgages. This means their property is worth less than what they owe. Due to this fact, their homes may slip into foreclosure in the next few months or years. If you think you are about to face a foreclosure, you should consider selling your home short. Short sales should be made before a foreclosure takes place.

Benefits of Short Sales

Banks usually accept short sale transaction because they find better off taking less than what is owed on the property than going the foreclosure process, paying multiple additional costs and attempting to market the property again as REO. If the struggling homeowner attempts to sell his home on his own, he will usually end up losing a lot of money. However, with the help of a right agent, he can make up the difference in the sale price and what is owed on the mortgage. Apart from dealing with foreclosure, you will also have to deal with possible closing costs, inspection fees, taxes, and realtor commissions. If you are looking for ways to avoid having a complete financial breakdown, a short sale may be the right solution for you. With the help of an experienced specialist, this transaction can be an out of your current financial crisis. Don’t forget that a foreclosure will also put a black mark on your credit score. If you don’t address this problem adequately, you may ruin your life forever.  

If you are facing foreclosure, apart from short sale, you also have several more options available. You can try to refinance, opt for a loan modification or forbearance, try gaining a partial claim, go into bankruptcy or go through voluntary foreclosure. Before making a final decision, and opting for selling your home short, you should explore all your options. A lender will usually agree to this type of transaction, but he doesn’t have to. Basically, if you offer your lender an amount that is more than what they expect they could get in a foreclosure sale or auction, they will accept your offer. To convince your bank your offer is the best they can get, you need to hire an agent with excellent negotiation skills. Since the banks do not want to own and maintain a property, they will do everything they can to avoid this and limit their losses. Most lenders have a Loss Mitigation Department that evaluates loans that have gone bad and find ways to recoup their money back. If nothing else, they will at least try to minimize their losses.