Real Estate Blog from a Maryland Real Estate Investor & Agent; a blog where you will find investing, internet marketing Information, business advice, short sale and real estate deals. I guarantee it!
This is an announcement for a Single Family Residence I have listed For Sale in Bowie MD 20721 – Short Sale:
SHORT SALE deal. Submit AS IS offers for this Well maintained Single Family Home (Colonial) with 3Br/3Ba. Its a beautiful home with ceramic tiles in the kitchen & foyer. Totally updated from top to bottom, finished basement, Wood floors, storage shed, large backyard and more.
For complete information of this property directly from the MLS; Call 301-841-7593 for more information OR go to
This is an announcement for a Condo I have listed For Sale in Beltsville MD 20705 – Short Sale:
SHORT SALE deal. Submit AS IS offers for this Well maintained Condo with 2Br/1Ba on main level. Its a beautiful home with ceramic tiles in the kitchen & foyer. The community has a playground and an outdoor pool. All utilities are included in condo fee. Close to shopping, Univ of Maryland College Park & transportation.
For complete information of this property directly from the MLS. Call 301-841-7593 OR go to
This is an announcement for a Single Family Residence I have listed For Sale in Severn MD 21144 – Short Sale:
HOME SOLD AS IS. TOTALLY UPDATED FROM TOP TO BOTTOM IN 2005. CROWN MOULDING,DECK AND TOTALLY FINISHED BASEMENT WITH FAM RM,1/2 BATH AND 3RD BR. WOOD FLOORS ON MAIN LEVEL. MBR WOOD FL.WALK IN CLOSET&SUPER BATH. YOU MUST GO INSIDE IT IS BEAUTIFUL.PRICED WELL BELOW NEIGHBORHOOD.
For complete information of this property directly from the MLS; Call 301-841-7593 for more information OR go to
This is an announcement for a Rancher I have listed For Sale in Randallstown MD 21133 – Short Sale:
Submit AS IS offers for this Well maintained Rancher, 3 Br / 2 Ba on main level. Its a beautiful home, Hard wood flrs throughout main level, and fully finished basement with wall to wall carpet and additional rooms. Huge back yard with cement patio and shed. One bathroom on main floor needs little work.
For complete information of this property directly from the MLS; Call 301-841-7593 for more information OR go to
This is an announcement for a Condo I have listed For Sale in Bowie MD 20720 – Short Sale:
Home will be sold AS IS, bring offers! This beautiful condo in Glensford is perfect for those wanting stress-free living!Just come home to this 2 huge bedrooms, 2 full baths, separate living and dining rooms with beautiful cathedral ceilings, living room w/fireplace, an updated eat-in kitchen, deck, Fabulous!
For complete information of this property directly from the MLS. Call 301-841-7593 OR go to
The entire foreclosure process can be very stressful for homeowners; some get so depressed, that they do nothing about it. While others who are proactive sometimes end up being given the wrong advice or make decisions that are not well informed. If you are a homeowner dealing with this situation, you will have to make a decision on whether to get your property sold as a Short Sale usually at the discount approved by your lender, or give the property back to them as a Deed-In-Lieu of Foreclosure or just let them complete the Foreclosure. You need to decide which of these three options is the best for you both in the short and long term? Deciding which option to take might be tough especially if you do not know how each will affect your credit and ability to buy a home in the future.
Short Sale VS Foreclosure VS Deed-In-Lieu of Foreclosure
A short sale transaction occurs when a lender agrees to a discounted payoff on the loan balance, due to the financial hardship experienced by the homeowner and/or a decrease in the resale value of the property. A short sale is the best option if you are facing foreclosure because it is a lesser financial loss. You get to avoid foreclosure, reduce the adverse effects on your credit and increase your chances of getting a loan to buy a home within a shorter period of time.
Foreclosure occurs when a lender sells or gets back a parcel of real property, after the owner failed to conform to their mortgage or deed of trust agreements. The estate becomes the absolute property of the lender. The foreclosure process generally starts with a formal demand for payment in the form of a letter called Notice of Default (NOD) issued from the lender. It varies from state to state but in most cases the lender usually issues this notice when the homeowner has been 3 months irregular on their mortgage payments. The notice is typically a warning that they will sell your property if you do not make your payments current.
Deed in Lieu of Foreclosure is the alternative to a foreclosure. This is a settlement, which is voluntarily made, and in good faith in which the borrower surrenders their house to the lender and moves on with nothing owed. The main advantage for the borrower is that it immediately releases them from the debt associated with the defaulted loan. The borrower also avoids a painful and time consuming foreclosure. The main advantage for the lender is a reduction in the time and cost of repossessing the property. In most cases a lender will only accept a deed in lieu if there are no other liens attached to the property or these liens can be significantly reduced. The reason is because they do not want to be responsible for the other liens that are attached to the property; this is why most lenders will push for a foreclosure instead because it removes all junior liens.
A Short Sale is a type of real estate transaction wherein a homeowner sells their property for less than what they owe the lender. For most lenders to consider a short sale, the homeowner must be experiencing a financial hardship and is unable to make their mortgage payments. Also, the mortgage itself has to be upside down; meaning that the value of the property has dropped and hence there is no equity. The lender takes a loss, and any unsettled balance is usually forgiven. In order to begin the process of negotiating and then approving the short sale, you will need to submit a set of documents required by most lenders. The primary documents are:
• Authorization to Release information. This authorization is an important document because it instructs the lender to discuss your loan with a third party, which in this case is your real estate agent who is helping you navigate the short sale process. The authorization should contain the following data.
a. Name of all the borrowers
b. Social security number of all the borrowers
c. Address of Property
d. Names of lenders/creditors
e. Loan number
f. Signatures of all the borrowers
g. Date
h. Name and contact information of your real estate agent (or whomever you want the lender to release your loan information to)
• Borrowers Financial Statement. This document highlights in detail your assets and liabilities. It is a worksheet that accounts for all your income and expenses. It also should include your co-borrower’s financial information.
• Listing Contract. This is the contract between you and the listing agent. It is needed so the lender can see that your agent has made the effort to expose the property to as many potential buyers as possible in order to received offers by placing it on the Multiple Listing Service (MLS). It also highlights the commission charged by the real estate agent. Agents are often needed in order to speed up the process.
• Purchase and Sale Agreement. This is an agreement that contains the accepted buyer offer. The contract should be legitimate and must be signed by all the owners of the property. A short sale package is considered incomplete without this document. Only packages with a contract that has been signed by both the buyer and the seller should be submitted to lender.
A Short Sale is a real estate transaction in which the revenues from the sale fall short of the balance owed on a loan secured by the property sold. Short sales have become the order of the day due to the financial hardships experienced by homeowners whose mortgages are upside down and can no longer make their mortgage payment for one reason or the other. Instead of letting the bank foreclose and ruin their credit, homeowners are now opting to do a short sale.
Who Benefits from a Short Sale?
After a short sale, the home is sold to the buyer and the seller walks away without any cash from the sale; all proceeds go to the lenders and other creditors on title. The main advantage of a short sale to the seller is that he/she can avoid owing the balance of the loan and also get to avoid the long term negative consequences of a foreclosure on their credit.
The buyer’s advantage is clearly the prospects of getting their new home at a significant discount compared to what they might have paid for it a few years back. Buyers should be aware that the short sale process often takes time and are required in most cases to purchase the property as is. In the end, the reward for being patient is a new home at reasonable price.
Mortgage lenders benefit as well, they avoid the cost of a lengthy foreclosure process. Most lenders will agree to a short sale if the seller can prove that they are financially insolvent and also if the lender is made to see that it’s in their best interest to take the discount now instead of taking the property back after a foreclosure and then trying to sell it for less than what they can net right at the moment if they approved the short sale.
