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 Short Sale certified Real Estate Agent in Maryland and Virginia

 

 

Short Sale Definition: Selling real estate for less than is owed on

the mortgage or combined mortgages with your Bank’s

Approval.

 

 

Understand loan modifications:

 

If you can no longer afford your mortgage payments, it’s most likely time to cut your losses by short selling the house. It’s also important to understand the chances of having your loan modified are slim….very slim. Many of our short sale clients attempted a modification first, but were denied due to the mortgage being too high compared with the current value of the home, not having enough income, having too much income, etc. It’s a very frustrating process which usually leaves the home owners months behind on a mortgage and still owing much more than the home is worth. PS – the banks almost always require you to be late on payments to apply for modification….it’s crazy, I know.

 

Short Sale:

 

When a loan modification won’t work (rarely do they) or you just need to get out of the house all together, do a short sale. The short sale process takes a long time, its not fast as the home still has to sell in this buyer’s market. You will need a good attorney to negotiate the short sale for you.

 

 

Foreclosure:

 

At some point of not making payments long enough, the bank will move forward with their right to legally take the home back through a Foreclosure. If you get “served” papers, you are in foreclosure but not out of luck. You still have time to sell the home…maybe even another 6 months as the courts are so backed up with Foreclosures in Maryland and Virginia. This time period of being in foreclosure is called Pre-foreclosure. The house is not truly a “foreclosure” until after the bank has taken back the house, again about 6-8 months AFTER you get “served” papers. However, you shouldn’t walk away or wait any longer to get the home on the market.