Frederick County Short Sale Blog | Homes for Sale in Frederick Md

Am I Eligible to Sell My Home in a Short Sale?

There are record numbers of homes being sold as a short sale in today's real estate market.  Short sales have been done for years, just not in the numbers that we see today.  A Short Sale is when a seller negotiates with their lender and gets them to allow the home to be sold for an amount "short" of what is owed.  In most cases, the bank write's off their loss, but in some cases the seller is charged a deficiency, on which they must make payment arrangements.  Banks don't like short sales, but they don't like foreclosure more.

If you are in a distressed situation, you may be a candidate for a short sale.  You must document and prove to your lender that you are unable due to financial hardship to pay your mortgage.  If you want to keep the Mazarotti and dump the mortgage, you probably are not in a hardship. 

You must have gone through a hardship such as job loss, divorce, or some kind of income loss to qualify.  You have to get in touch with your lending representative, fill out the neccessary paperwork and provide the documentation they ask for.  When you list your home, you have to list at market value for a certain amount of time, to prove that the home won't sell for market value. 

The ins and outs of a short sale are very complicated.  Only 1 in 31 short sales actually make it to settlement in Maryland.  Banks are overwhelmed with the number of short sales they are getting and are understaffed.  The communication between banks and real estate agents is virtually non-existent.  To make it worse, many agents are not trained to handle short sales.  That's why its very important to find an agent who has a CDPE certification.  CDPE, or Certified Distressed Property Expert, is a nationally recognized designation that real estate agents can get when they get training to handle short sales.  For CDPE certified agents, 7 in 10 short sale listings go to settlement. Chris Highland is a CDPE certified real estate agent in Frederick and Montgomery Counties.

To read more about short sales and the CDPE designation, visit the Avoiding Foreclosure page on our website. If you have more questions, contact us.

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The Highland Group

               
                                 
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