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

Considering Making A Purchase Offer on A Frederick Short Sale?

The Frederick Real Estate Market is loaded with good deals this Spring.  Estimates are that 30% of the homes listed for sale are short sales or foreclosures, what we call distressed sales.  Most of these homes can be purchased for 20% below market, (which is 20% to 30% below what the market was 2 or 3 years ago.)  If you are considering making one of these great deals your own, there are some facts about Frederick short sales that you need to know:

1.  Frederick Short Sales take time.  The holder(s) of the loan on a short sale have agreed to take an amount 'short' of what is owed by the homeowner.  Because these loans may have been sold on the secondary market, and may be more than one loan, the lenders have to give their approval for the amount that is being offered by the buyer. Due to the nature of the third-party approval, it takes time to get to all the holders of the loans to get their permission to take the amount offered.  It can take as little as 45 to 60 days, or we've seen as long as 120 to 150 days.  As a buyer, you have to have the proper expectations going in to the process, and you have to have the ability to 'hang out there' waiting for an answer.  If a buyer has the ability to be patient, they can get a great deal.

2.  Your Buyers Agent Should Be Experienced with Short Sales.  If your buyer's agent has knowledge and experience, they will be much more able to help you, first with the proper expectations, and second, in knowing the right questions to ask.

3.  The Success of the transaction rests heavily on the listing agent.   The short sale listing must have every piece of documentation and it must be properly executed.  If all the documentation is not there, the bank will just shred all the paperwork (because of the Sarbaines/Oxley legislation)* and you could be waiting months not even knowing that your offer has been shredded.  Your buyers' agent should vet the experience of the listing agent before you even make an offer.  In Maryland, only 1 in 31 short sales ever make it to settlement, because so many agents don't know what they are doing.

According to NAR statistics, over half of the recent home sales have been first-time buyers.  Of these sales, half were short sales or foreclosures.  There are some excellent deals out there for buyers.  Contact us if you'd like to make a short sale purchase, Chris is a Certified Distressed Property Expert, and can help you navigate the complicated but incredibly rewarding real estate market.

Use our free property search to find that sweet deal:

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The Highland Group

           
                                 
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