Menu

MD Short Sales Realtors

We live in tough economic times and due to this crisis many homeowners who need to sell in the current market find themselves trapped and don’t know what to do. If you own more money than your home is worth, and you are about to face foreclosure, you may consider selling your home short. With the decline in home values in the past few years many leading realtors for short sales have helped struggling homeowners to avoid foreclosure and sell their home for less than they own. Read on to learn when a short sale is a viable option for struggling homeowners.

The Process of a Short Sale

This type of transaction is a sale that is completed when a homeowner doesn’t have enough money to cover his mortgage. The process requires the seller to bring money to the closing or to negotiate a payoff with their lender. However, this payoff will be shorted. The lender doesn’t have to agree with this, but many banks will because they have more benefits of getting some money, than nothing at all. If you are facing foreclosure or you no longer have the ability to continue making your payments in time, you should hire a local realtor and sell your house short.

There are a lot of misconceptions about the process and the lender's role in it. The roles of the bank can be different if you live in a title theory state or lien theory state. Most states are lien theory state, meaning that the owner holds the title while the lender only holds a lien on the property. As the seller, you are the one who decides what proposals will be accepted or rejected. You also have the right to propose a counter offer once an offer is received. The best sale can be negotiated only with the help of an experienced real estate agent. Once you accept an offer, you lender or the bank should agree on the net proceeds of the sale. The received net should be taken as full settlement for the owed amount of money, even though there will always be a shortage. If you receive multiple offers to sell your home, you don’t have to present all of them to the lender. Your listing agent should aid you in obtaining the best offer possible and help you close the transaction successfully.

Odds of a Successful Closing

Many bans accept a short sale because the transaction nets more money versus going into foreclosure. In case of foreclosure, they will take the home back and market it as an REO or real estate owned. Depending whether or not you live in a judicial foreclosure state, the entire process can take a lot of time to complete. When the process drags, the bank won’t receive any money. Also, since no one will be living there, the bank will have to take care of carrying costs. However, if they accept a short sale and close the transaction, they can limit their losses and sell the property again.