Short Sales: A Solution to Maryland Homeowners Facing Financial Challenges

Dated: June 8 2023

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The Current Market and Upcoming Foreclosures.

In the realm of real estate, short sales have emerged as a viable option for homeowners who find themselves owing more to the bank than the current market value of their property. As a real estate agent, you have the opportunity to assist these homeowners by listing their property as a short sale, leveraging your experience to potentially save them from the long-term consequences of a foreclosure. In this blog post, we will explore the key considerations and questions homeowners should ask themselves before proceeding with a short sale.

What is a Short Sale?

A short sale occurs when a homeowner sells their property for an amount lower than the outstanding mortgage balance. The lender agrees to accept the sale proceeds as full settlement of the debt, relieving the homeowner of the remaining financial obligation.

Key Questions Homeowners Should Ask Themselves Before Pursuing a Short Sale

1. Is a short sale the right solution for my financial situation?

Before committing to a short sale, homeowners should thoroughly evaluate their financial circumstances. Consider the following factors:

  • The gap between the outstanding mortgage balance and the property's current market value.
  • The ability to maintain mortgage payments or negotiate a loan modification.
  • The potential impact on credit history and future borrowing capabilities.

2. Have I explored all alternatives to a short sale?

A short sale should be considered as a last resort. Homeowners should investigate alternative options such as loan modifications, refinancing, or negotiating forbearance agreements with the lender. Exploring these alternatives may provide more favorable outcomes.

3. Have I sought professional advice?

Navigating a short sale can be complex, so it is essential for homeowners to seek guidance from professionals experienced in the field. Consider consulting with a real estate agent specializing in short sales, a real estate attorney, or a financial advisor to ensure the process is handled properly and all legal and financial implications are understood.

4. What are the potential consequences of a short sale?

While a short sale can provide relief from an underwater mortgage, homeowners must understand the potential consequences:

  • Impact on credit score: A short sale may negatively impact credit scores, although typically less severe than a foreclosure.
  • Tax implications: Consult with a tax professional to understand any potential tax liabilities resulting from the forgiven debt.
  • Deficiency judgments: Depending on the jurisdiction, lenders may have the right to pursue homeowners for the remaining debt.

5. Do I have a qualified real estate agent to guide me through the process?

Partnering with a knowledgeable and experienced real estate agent who specializes in short sales is crucial. Ensure that your chosen agent has a proven track record of successfully negotiating short sales, as their expertise will be instrumental in navigating the complexities of the process.

The Foreclosure Law in Maryland: Understanding Short Sales in a Judicial State

It is important to note that Maryland is a judicial foreclosure state. This means that foreclosure proceedings must go through the court system, allowing homeowners additional time to explore alternatives such as short sales. Homeowners in Maryland can take advantage of this judicial process to pursue a short sale and potentially avoid the more dire consequences of a foreclosure. Consulting with a real estate attorney familiar with Maryland's foreclosure laws can provide valuable guidance in navigating this specific legal landscape.

Remaining at Home While Pursuing a Short Sale

One advantage of pursuing a short sale is that homeowners can typically remain in their home throughout the process. Unlike a foreclosure, which often requires the homeowner to vacate the property, a short sale allows homeowners to continue residing in their home until the sale is finalized. This provides stability and allows homeowners to focus on finding alternative housing arrangements at a more manageable pace. However, it's important to note that each situation may vary, and homeowners should consult with their lender and real estate agent to fully understand the specific

Free Consultation: Expert Assistance with Short Sales

If you're considering a short sale and need expert guidance, look no further. My name is Fernando Herboso, I have over 15 years of experience in the real estate industry, specializing in short sales. With a track record of over 150 short sales from the last real estate correction in 2009, I have the expertise to help homeowners navigate the complex process in 2023 and beyond.

I understand the challenges homeowners face when dealing with an underwater mortgage, and I am committed to providing personalized support and guidance throughout the short sale journey. To get started, I offer a free consultation to discuss your specific situation and explore the best options available to you.

During the consultation, we will address any questions or concerns you may have about the short sale process

By partnering with me, you will have an experienced professional by your side, guiding you through each step of the short sale process. My goal is to ensure that you receive the best possible outcome while minimizing the negative impact on your financial future.

To schedule your free consultation and take the first step towards financial relief, contact me at 240-426-5754. Together, we can navigate the complexities of the short sale process and work towards a brighter future.


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Maxus Realty Group

Fernando Herboso: Honesty and integrity, along with determination and dedication, are philosophies that Fernando strives for in all aspects of his life. Applying these principles to his business, has....

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