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

What's Up with Foreclosures In the Frederick Real Estate Market?

As much as 30% of the homes for sale in the Frederick Real Estate Market are what we refer to as "distress sales", including short sales and REO's, or foreclosures. 

When a homeowner can't make their mortgage any more, for various reasons, they can choose to try what is called a short sale.  If they can prove financial hardship, they can usually negotiate with their lender to let them sell the home for an amount short of what is owed.  The good thing about short sales is that the homeowner is still living in the home, and the home has not deteriorated like a foreclosed home that has been empty for 9 to 12 months.  The other compelling reason to buy a short sale is that they can be bought for below market, The one negative about a short sale is that they take longer than the usual sale.  It takes time to negotiate with the lender(s), usually 60 days or longer.  Buyers who can't wait for an indefinite period of time are not good candidates for a short sale purchase.

Foreclosures, or REO's (Real Estate Owned), are also a large part of the Frederick Real Estate Market this year.  There are so many on the market that we're seeing many homes in surprisingly great condition, with needs for easy cosmetic updates, ie. flooring and paint.  A bank-owned property usually takes 2 to 5 days to negotiate an offer.  The home is always purchased "as-is"  We're seeing REO's placed on the market for 20% to 30% below market, creating what we call the "blood-in-the-water" scenario.  The home will get multiple offers, as many as 6 in our recent experience.  The home will usually be bought at $10K or so above list, (which is still well below market). 

This is a great market for first-time buyers and investors who don't mind putting in a little paint and carpet. 

To see foreclosures on the Frederick Real Estate market, use our property search, and click the 'foreclosures' tab.

_____________________________________________________________

The Highland Group