Short Sale Specialist Montgomery County MD

Real Estate Broker/Owner with "The Congressional Team" RE/MAX Realty Services

Short Sale Specialist Montgomery County MD

As a Short Sale Specialist in Montgomery County MD,  the questions below will help me determine whether or not you could qualify for a Short Sale.

Short Sale Questions and Information

 What is the address of the property?

What is the approximate value?

What bank is involved in the first trust mortgage?  How much do you owe?

Is your loan FHA, VA, or Conventional?

Is there a second trust?  Who is the bank and what is the balance?

Are you current in your payments?

Do you have other assets? Cash, stocks, property, etc.

Do you have a hardship? See below examples.

   I.e. Unemployment / reduced income, Divorce, Medical emergency, Job transfer out of town

   Bankruptcy, death


Short Sale Specialist Montgomery County MD 


The Basic Process


 The seller will need to prepare a financial package for submission to the short sale bank. Each bank has its own guidelines but the basic procedure is similar from bank to bank. The seller's short sale package will most likely consist of:


·                        Letter of authorization, which lets your agent speak to the bank.

·                        HUD-1 or preliminary net sheet

·                        Completed financial statement

·                        Seller's hardship letter

·                        2 years of tax returns

·                        2 years of W-2s

·                        Recent payroll stubs

·                        Last 2 months of bank statements

·                        Comparative market analysis or list of recent comparable sales


After the seller accepts an offer, the listing agent will send the following items to the bank:

·                        Listing agreement

·                        Purchase offer

·                        Buyer pre-approval and EMD check

·                        Seller short sale package


 If the package is incomplete, the short sale process will be delayed. In this event, the bank might even shred the package.

 Short Sale Specialist Montgomery County MD

Buyers may wait a very long time to get a response from the bank. It is imperative for the listing agent to regularly call the bank and keep careful notes of the short sale process. Buyers may get so tired of waiting for short sale approval they may feel the need to threaten to cancel if they don't get an answer within a specified time period.


That type of attitude is self-defeating and will not speed up the short sale process. If buyers are the type with little patience, perhaps a short sale is not for them.

Following is a typical short sale process at the bank:

·                        Bank acknowledges receipt of the file. This can take 10 days to a month.

·                        A negotiator is assigned. This can take 30 to 60 days.

·                        A Broker Price Opinion is ordered. The bank probably will refuse to share the      results of the BPO.

·                        A second negotiator may be assigned. This can take another 30 days.

·                        The file is sent for review. This can take 2 weeks to 30 days.

·                        The bank may then request that all parties sign an Arms-Length Affidavit.

·                        The bank issues a short sale approval letter.

·                        The bank will not approve the short sale

                      The buyer cancels.



Sometimes we have to sell a short sales 3 or 4 times before a buyer sticks with the transaction. Buyers get angry and annoyed because the short sale process can be so lengthy that they sometimes cancel without telling anybody. Some short sales get approval in 6 to 8 weeks. Others take 90 to 120 days, on average.

As a Short Sale Specialist Montgomery County MD I have written several blogs on the subject. Click on the sentence above to read my other short sale blog 


How is a Short Sale Seller's Credit Affected?


Fair Isaac released a report that says credit scores are affected about the same, whether a seller does a short sale or foreclosure. Fair Isaac says the average points lost on a FICO score are as follows:

·                        30 days late: 40 to 110 points

·                        90 days late: 70 to 135 points

·                        Foreclosure, short sale or deed-in-lieu: 85 to 160

·                        Bankruptcy: 130 to 240


 Read all my blogs at


Call or email today for HELP.   Short Sale Specialist Montgomery County MD



Posted by

Rick Reed, G.R.I., CDPE- Certified Distressed Property Expert 

Assoc. Broker/Owner "The Congressional Team" RE/MAX

Licensed in MD & Wash DC

8937 Shady Grove Court
Gaithersburg, MD 20877
Cell: 301-742-1172
Office: 240-403-0399 X306

Can I help a friend or family member with their Real Estate needs?  You can count on me!


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Jim Keilson
Maryland Home Inspection Services, Inc. - Gaithersburg, MD

Some good info Rick.  From what I have been seeing new home sales are still going to have troubles, it's the short sales and foreclosures that I think will really take off this year.



Mar 30, 2011 01:17 PM #1


Bankster of America wants me to do a default on my mortgage in order to do a short sale.  I am laid off.   What kills me is Bankster of America got nearly 3 Trillion in bailout to cover Merrill Lynch, Countrywide and others.  We homeowners must pay to cover the BAD derivatives bets on wall street some 1500 trillion according to some sources.  Washington Post saying 600 Trillion.   US national debt is 14.2 Trillion to put it in perspective.

Dont deal with BoA.   They are awful.   I can not believe what is happening.   And no one goes to jail.    Because if you tip the hornets nest you will find you got more than one hornet to put in prison.   Tracing it to congress and other banksters.

We all know the recession has ended in June 2010, today is April 2011.   We had 6 banks close on friday across the USA, and only 34 bank closing this year 2011 so far.    Banksters are happy.  Congress is fat and happy.  

I just cant sell my house.   ANd Fat Bankster of America is richer than ever.

Apr 18, 2011 12:29 AM #2
Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Great list of items and great overview of the short sale process.

Apr 27, 2011 07:31 AM #3

am not so sure the credit reporting is quite right.  if you are current on your loan and complete a short sale, the credit score should not be affected, or if so, only quite minimally.  otherwise a good general overview of the process. for more free info, please see

Aug 18, 2011 09:53 PM #4
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Rick Reed

Assoc Broker, GRI, CDPE, REO, Short Sale, Military
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