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3 Steps to a SHORT SALE For Maryland Residents

By
Managing Real Estate Broker with Maxus Realty Group of Samson Properties Broker - Realtor - CEO

 

3 STEPS to a SHORT SALE

Lets begin with  the definition..

What Is a Short Sale?

A “short sale” is a negotiated agreement with your lender to accept less money than they’re owed as full payment for your loan. If you do not have any equity and you can not afford to pay the Realtor and the closing costs, a short sale maybe the right solution for you.. .the lender in most cases will pick up the tab.

#1

The most important step. .loan mod!

You should consider a loan modification if possible at this time.

But under no circumstances accept a loan modification agreement that could only benefit the lender.. 

Obtain the correct documents required and call your lender.

A loan modification has to be a win-win for you and the lender.

To qualify for a loan modification these are some of the guidelines for you:

  • Steady employment (two or more years) with the same employer or in same line of work.
  • Low debt: no recent major buys. .and a debt-to-income ratio of 38 percent or less.
  • Property is a home to be used as primary residence. 

 

#2

Hardship was an important component in a short sale, somehow in the last few months I noticed that to be a formality more than a requirement.  Nevertheless,you must prove to the lender that a hardship exists. .and they must be willing to accept the short sale proceeds as full settlement of the debt.

Some examples are of a hardship are:

  • Separation or Divorce
  • Medical Bills
  • Inability to work due to health reasons
  • Death of Spouse
  • Job Relocation
  • Reduced Income or Unemployment
  • Business Failure
  • Bad loan / excessive rate adjustment

#3

When a Loan Modification fails or you determined that is not the road you want to take. . then a short sale should your next choice.

For more information Read “Is Short Sale Is and Option For You?”

Check more information about Short Sales In Maryland


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Comments (2)

David Burrows
Classic Realty - Fairfax, VA
No Pressure, Just Seriously Devoted to Real Estate

Thanks for the excellent information. Knowledge is truly power in Real Estate. - David

Dec 15, 2010 12:13 AM
Jay Schmitt
Keller Williams Keystone Realty - Gettysburg, PA
Gettysburg Real Estate Agent

Wasn't the info I thought it would be but good info all the same.

Dec 15, 2010 12:21 AM