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Maria Weaver

Bilingual Associate (English/Spanish), ABR, CDPE, CRS

Tel: (410) 258-0604   Fax: (443) 656-0687   Toll Free: (800) 548-3416   Email Me

 

Find out more about short sales 

What is a Short Sale?

A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.

But to be technical, here’s a more official definition:

  • A homeowner is ‘short’ when the amount owed on his/her property is higher than current market value.
  • A short sale occurs when a negotiation is entered into with the homeowner’s mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then ‘sold short’ of the total value of the mortgage.

For homeowners to qualify for a short sale, they must fall into all of the following circumstances:

  • Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
  • Monthly Income Shortfall – In other words: “You have more month than money.” A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
  • Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

This seems simple enough, but it is a complicated process that takes the expertise of experienced professionals.

 

 

To view homeowner consequences comparing foreclosures and short sales click here

To view a summary of Maryland Foreclosure Law click here.

Useful Links

Mortgage Modification Resources

The Home Affordable Refinance Program

http://www.makinghomeaffordable.gov/

HOPE NOW

www.HopeNow.com

Fannie Mae Loan Lookup

http://loanlookup.fanniemae.com/loanlookup/

Freddie Mac Loan Lookup

https://ww3.freddiemac.com/corporate

 

HUD Approved Counselors

Catholic Charities USA©

www.catholiccharitiesusa.org

Citizens’ Housing and Planning Association, Inc.

www.chapa.org

HomeFree-USA©

www.homefreeusa.org

Homeownership Preservation Foundation©

www.995hope.org

The Housing Partnership Network©

www.housingpartnership.net

Mission of Peace Housing Counseling Agency©

www.missionofpeace.com

Money Management International, Inc.©

www.moneymanagement.org

National Council of La Raza

www.nclr.org

National Federation of Community Development Credit unions

www.cdcu.coop

National Foundation for Credit Counseling©

www.nfcc.org

The National Urban League©

www.nul.org

NeighborWorks® America

www.nw.org

Neighborhood Assistance Corporation of America© (NACA)

www.naca.com

Rural Community Assistance Corp.

www.rcac.org

Structured Employment Economic Development Co.

www.seedco.org

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