What is a Short Sale?
Many buyers are noticing "third-party approval" and "short sale" tags on descriptions of listings. In most cases, the third party is the bank, and the listing is most likely a short-sale. A homeowner who, for any of several reasons, is having trouble making their mortgage payment, can often avoid foreclosure by entering into what is called a short sale agreement with the lender. They can negotiate with the bank to sell their home for an amount that is "short" of what they owe.
Banks are not in the business of owning property, and are willing to negotiate on a short sale much more these days than ever before. The large number of defaults, because of the amount of bad subprime loans made over the last few years, has the banks overwhelmed. Short sales have been around for years, just not in the volume we're seeing today. It used to be that you had to search extensively to find a real estate agent who specialized in distressed properties; now, in some neighborhoods, over half the homes on the market are bank-owned or short sales.
The short sale process has been getting a lot of bad press lately, and much of it deserved. Did you know that in Maryland, only 1 in 31 short sale listings ever make it to settlement? The reason is basically two-fold: 1. Most Realtors don't know what they are doing when it comes to short sales, and 2. Banks are overwhelmed and understaffed. So understaffed that they don't have the ability to communicate with realtors. (We speak Greek, they speak Swahili!)
Realtors can learn the detailed process in 2 ways: trial and error, or by being trained.
Chris and I chose the latter. We've aquired a certification with extensive training and ongoing support that has equipped us to deal with distressed properties. CDPE, Certified Distressed Property Expert. Call us today if you, or someone you know is having trouble making their mortgage payment. We may be able to help you or them avoid foreclosure. 301-831-9947. We'll help you asess your options.
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The Highland Real Estate Group
Chris & Karen Highland
Frederick County MD Real Estate Agents
Specializing in Frederick County Real Estate
301-831-9947
Real Estate Teams, LLC
isell4u2@msn.com
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