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
Pictures of Frederick
We’re Chris and Karen Highland, The Highland Real Estate Group. We’ve lived in the Frederick area for over 18 years and are raising our 4 children here. We’ve seen many communities built where there once was farmland. We love the “small-city yet large-town” atmosphere of Frederick, the quality of life, and the affordability we’ve found here.
I've been selling real estate in Central Maryland for almost 16 years. Karen has been helping me over the years in different capacities, as an assistant, then as a buyer’s agent. For a year, I managed an office and Karen took over the bulk of the business. It was a great experience for both of us. I managed 90+ agents and saw more contracts come over my desk than the previous 14 years combined!
Now I'm back, running the business and Karen is running the office, and blogging and marketing. With each new year comes a different kind of market and new challenges.
In this present market, we face many challenges with mortgage problems, distressed properties and the credit crunch. I've gotten a nationally recognized certification , CDPE, Certified Distressed Properties Expert, to equip me to help homeowners in distress. I'll be blogging about a lot of these issues and about all kinds of real estate topics.
Karen and I always have something to say! Join us in our online, ongoing conversation about Frederick Real Estate