Maryland Short Sales
Due to the poor economy and rapid decline in home prices in recent years, there are considerable numbers of short sales in Maryland. 22% of mortgage holders in MD are underwater. These home owners owe more on their property than they will be able to sell them for. The only way they can avoid foreclosure and sell their homes, is by means of short sale approval.
Nearly all Short Sale homes for sale in Maryland are listed on the MLS. Sellers who who need third party usually need a fast sale, and require the help of a Realtor who knows how to manage Maryland short sales.
What is a Short Sale?
A short sale by definition where the homeowner owes more than the real estate is worth. Short sales ordinarily happen among distressed properties where the homeowners are behind on their mortgage payments.
Because lenders want to prevent foreclosures, they are usually willing to accept less than what is actually owed to prevent the foreclosure.
Sometimes short sales happen even when the borrower is not in default. These cases usually occur when a borrower has a second or third loan. The second lien is in a bad position, and if a foreclosure were to happen would likely get nothing. These secondary liens will often modify the loan from a real estate lien to a personal loan so the seller can transfer their property. In these instances, the Maryland borrowers are not forgiven of their financial obligation, but have to repay it.
Purchasing Maryland Short Sales
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Purchasing short sale homes is similar to purchasing traditional Maryland real estate. The main difference is that it requires considerably more patience, uncertainty, and gambling.
There are a few more steps required with short sales When an offer is made on a Maryland Short Sale property it needs to be accepted by both the seller and the bank. Waiting for the banks can take a very long time . When priced low, these properties often have lots of competition and get multiple offers, after waiting months for bank approval there might not be any of the potential parties who are still interested in the properties.
Short sales in Maryland are often priced below market value for a couple of reasons the seller isn‚Äôt going to net any money out of the house, and so aren’t concerned about receiving top dollar.
Short Sales are also often priced below market value because they need offers so the file will be reviewed by the loss mitigation department. For this reason listing agents like to price the homes really low to get the ball rolling.
For this reason, buying short sale homes in Maryland can be a good way to get an undervalued property.
What Kind of Homes are Short Sales?
Short Sale properties in Maryland can be any type of real estate. They can be singe family homes, ramblers, cottages, townhouses, condos, lofts, condominiums, duplexes. They include starter homes as well as mansions. Maryland Short Sales are found in run down neighborhoods and in gated communities in Maryland. The type and size of the property isn’t what matters. What matters is that the people owe more on the house than it is worth. These properties are typically homes bought or refinanced between 2003-2007.
