Can You Help Me Sell My
Home Through a Short Sale?
Yes, we can. Back in 2008 and 2009, short sales were the most “popular” real estate transactions. There were also many foreclosure (REO) transactions, too. This was due to the mortgage and financial market and real estate market collapse. There are still some homeowners who are “under water” with their mortgages and need to sell. It may be that due to the 2020 pandemic, there will be a new round of short sales in the coming months and years. You may want to read Getting Clarity During Covid-19 … This Too Shall Pass.
We have successfully completed many short sales. As you probably know, a short sale is where the home will be sold for less than the current market value. This involves working with the lender(s) on the sale. The goal is to ultimately get “third-party approval” for the sale. The first step is to learn the fair market value of the home. Combined with your outstanding mortgage balance, we can determine if you really need to do a short sale.
To have the greatest chance of getting third-party approval, the home must be priced right. We’ve seen many short sales where the home is listed far below the market value. This is usually just to get a contract quickly. That’s great, but ultimately the sale is doomed to failure because the “third-party approval” will never happen. The lender(s) will get at least one a Broker Price Opinion (BPO) and maybe even an appraisal as a part of the process of determining their bottom line.
As a homeowner, you need to be willing to do some work before you start the short sale process. The lender(s) are going to request documentation from you to justify the reason for the short sale. They will ask for a lot of information! We can discuss those requirements with you when you Contact us to talk about your specific needs.
A short sale is a time-consuming process that normally takes anywhere from four to eight months from start to finish. Both the sellers and the buyers (and the real estate agents) involved in the transaction need to be willing to exercise patience. Be careful who you choose to handle a short sale for you. If they request any up-front payments in connection with short-sale services, they are violating not only the real estate licensing laws, but the Maryland MARS act.
In addition to the licensed Real Estate Agent representing you as the seller, you should also contact a tax adviser or tax professional. They can make sure you understand the potential tax consequences of a short sale. While we can provide you with basic information about the potential financial and tax consequences of a short sale, getting advice from the proper professionals in those fields is always the best way to go.
The licensed Real Estate Agents at DMS Properties, LLC Residential Real Estate Services have handled many foreclosure (Bank-Owned or REO) and many short sales transactions. Don’t hesitate to contact us to discuss your specific situation. That’s because each one is different. It is likely that the first thing we will do is learn the fair market value of the home. This is a FREE service that we provide. Always remember that you we will NEVER ask you to pay anything for our services or for our advice!