Can You Help Me Sell My
Home Through a Short Sale?
Yes, we can. Back in 2008 and 2009, short sales were among the most common types of real estate transactions, along with many foreclosure (REO) transactions. This was largely due to the collapse of the mortgage, financial, and real estate markets. Today, far fewer homeowners are “underwater” on their mortgages, so short sales are not as common. They still happen, and we have extensive experience handling them.
We have successfully completed many short sales over the years. As you may know, a short sale occurs when a home is sold for less than the amount owed on the existing mortgage. These transactions require working directly with the lender(s), whose approval, often referred to as third-party approval, is necessary for the sale to proceed.
The first step in evaluating whether a short sale is appropriate is determining the fair market value of your home. When this value is compared to your outstanding mortgage balance, we can help you determine whether a short sale is truly needed.
To maximize the chances of receiving lender approval, the home must be priced correctly. We frequently see short sales priced far below market value simply to attract quick offers. While that may generate immediate interest, it often leads to failure because the lender will never approve such a low price. As part of their decision-making process, lenders typically order at least one Broker Price Opinion (BPO) and sometimes an appraisal to determine their acceptable minimum.
As a homeowner, you should also be prepared to complete certain tasks before beginning the short sale process. Lenders require extensive documentation to justify the need for a short sale, and they will ask for a significant amount of financial information. We will discuss all required documents with you when you contact us to review your situation.
A short sale is a lengthy process, typically taking four to eight months from start to finish. Sellers, buyers, and agents must all be patient. It is also important to choose your representative carefully. If anyone requests up-front payment for short-sale services, they are violating real estate licensing laws as well as the Maryland MARS Act.
In addition to having a licensed Real Estate Agent represent you, we strongly recommend consulting a tax adviser or tax professional. Short sales can have tax implications, and while we can provide general guidance, only a qualified tax expert can properly advise you regarding your specific situation.
The licensed Real Estate Agents at DMS Properties, LLC Residential Real Estate Services have handled many foreclosure (Bank-Owned or REO) and short sale transactions. Do not hesitate to contact us to discuss your particular needs. Every situation is unique. In most cases, the first thing we will do is determine your home’s fair market value, a FREE service we provide. And remember that we will NEVER ask you to pay anything for our services or advice.