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

A Short Sale Tale

A seller we were working with referred his neighbor to us when he learned that we specialized in Frederick short sales. His story is worth telling, to give hope to others caught in the situation needing to sell when they owe more than their home is worth.  This seller had hardships that were particularly difficult:

Mr. and Mrs. Smith had purchased their townhouse in early 2007 for $195,000.  Mrs. Smith's parents had co-signed to help them.  In early 2011, as with as many as 10% of Americans, Mr. Smith was laid off from his job due to the economy.  That difficulty was eclipsed only by the fact that the Smith's 4-year-old daughter was under treatment for Lukemia.  They knew they couldn't last long in their present situation. 

The Smith's were conscientious people and paid their mortgage as long as they could, even using their tax return to pay it.  They contacted the bank and went through the process of attempting a loan modification, often a required step, but one that rarely ends in a satisfactory outcome.  After the modification was denied, they contacted the bank with all the documentation for a short sale and we listed the home on the market for $140,000, the approximate market value.

The good news is that the home is in a neighborhood that is in demand, close to a hospital that is under expansion.  The home sold in less than 2 weeks, contracted by a cash buyer for $120,000.  The bank was great to work with; some banks are very cooperative, some... not so much.  The settlement company was well-versed in short sales, a great help. The home closed within 60 days.  

As an added happy ending, during the first month, the seller found a new job in another state, with a great medical facility nearby.  The Smith's daughter is doing well.  Their credit has not suffered, and the bank has cut their losses by around 15% to 20%, compared to a foreclosure. We have a great sense of satisfaction from seeing a good outcome.

If you find yourself underwater on your mortgage, facing a hardship, don't hesitate to reach out for help. Many find themselves in similar situations, through no fault of their own. We'd be happy to help you avoid foreclosure, if possible. 

Chris Highland is a CDPE, Certified Distressed Property Expert. Send us an email, or better yet, give us a call for a discreet consultation.

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The Highland Group