Short Sale Tips for Sellers
Why Selling with Robert McArtor is the
Navigating Short Sales: What to Do When the Sale Price Leaves You Short
Robert McArtor is Harford County's Short Sale Realtor
If you're thinking of selling your home in Maryland, and you expect that the total amount you owe on your mortgage will be greater than the selling price of your home, you may be facing a short sale. A short sale in Baltimore, Harford County, Baltimore City and Surrounding Areas
is one where the net proceeds from the sale won't cover your total mortgage obligation and closing costs, and you don't have other sources of money to cover the deficiency. A short sale is different from a foreclosure, which is when your lender takes title of your home through a lengthy legal process and then sells it.
1. Consider loan modification first. If you are thinking of selling your home in Maryland because of financial difficulties and you anticipate a short sale, first contact your lender to see it has any programs to help you stay in your home. Your lender may agree to a modification such as:
· Refinancing your loan at a lower interest rate
· Providing a different payment plan to help you get caught up
· Providing a forbearance period if your situation is temporary
When a loan modification still isn’t enough to relieve your financial problems, a short sale could be your best option if
· Your property is worth less than the total mortgage you owe on it.
· You have a financial hardship, such as a job loss or major medical bills.
· You have contacted your lender and it is willing to entertain a short sale.
2. Hire Robert McArtor with RE/MAX Components in Baltimore, Harford, Cecil County & Surronding Areas
. Short sales have proliferated only in the last few years, so it may be hard to find practitioners who have closed a lot of short sales. You want to work with Robert McArtor who demonstrates a thorough working knowledge of the short-sale process and will not try to take advantage of your situation or pressure you to do something that isn't in your best interest.
When you Hire Robert McArtor with RE/MAX Components of Maryland
· Provide you with a comparative market analysis (CMA) or broker price opinion (BPO).
· Help you set an appropriate listing price for your home, market the home, and get it sold.
· Put special language in the MLS that indicates your home in Maryland is a short sale and that lender approval is needed (all MLSs permit, and some now require, that the short-sale status be disclosed to potential buyers).
· Ease the process of working with your lender or lenders.
· Negotiate the contract with the buyers.
· Help you put together the short-sale package to send to your lender (or lenders, if you have more than one mortgage) for approval. You can’t sell your home without your lender and any other lien holders agreeing to the sale and releasing the lien so that the buyers can get clear title.
3. Begin gathering documentation before any offers come in. Your lender will give you a list of documents it requires to consider a short sale. The short-sale “package” that accompanies any offer typically must include
· A hardship letter detailing your financial situation and why you need the short sale
· A copy of the purchase contract and listing agreement
· Proof of your income and assets
· Copies of your federal income tax returns for the past two years
4. Prepare buyers for a lengthy waiting period. Even if you're well organized and have all the documents in place, be prepared for a long process. Waiting for your lender’s review of the short-sale package can take several weeks to months. Some experts say:
· If you have only one mortgage, the review can take about two months.
· With a first and second mortgage with the same lender, the review can take about three months.
· With two or more mortgages with different lenders, it can take four months or longer.
When the bank does respond, it can approve the short sale, make a counteroffer, or deny the short sale. The last two actions can lengthen the process or put you back at square one. (Your real estate attorney and real estate professional, with your authorization, can work your lender’s loss mitigation department on your behalf to prepare the proper documentation and speed the process along.)
5. Don't expect a short sale to solve your financial problems. Even if your lender does approve the short sale, it may not be the end of all your financial woes. Here are some things to keep in mind:
· You may be asked by your lender to sign a promissory note agreeing to pay back the amount of your loan not paid off by the short sale. If your financial hardship is permanent and you can’t pay back the balance, talk with your real estate attorney about your options.
· Any amount of your mortgage that is forgiven by your lender is typically considered income, and you may have to pay taxes on that amount. Under a temporary measure passed in 2007, the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act, homeowners can exclude debt forgiveness on their federal tax returns from income for loans discharged in calendar years 2007 through 2012. Be sure to consult your real estate attorney and your accountant to see whether you qualify.
· Having a portion of your debt forgiven may have an adverse effect on your credit score. However, a short sale for your Maryland Home will impact your credit score less than foreclosure and bankruptcy.
Note: This article provides general information only. Information is not provided as advice for a specific matter. Laws vary from state to state. For advice on a specific matter, consult your attorney in Maryland or CPA.
Did you know that Properties facing foreclosure still have options in Maryland. The short sale is one of them your lender may want you to choose from. Real estate analysts predict that this year, lenders will be more likely to approve short sales due to legal issues, property maintenance costs and other challenges in the foreclosure process. A short sale will help you to avoid the stigma of a foreclosure on your credit report.
As a buyer, these short sale opportunities are at your fingertips when using one of our experienced Buyer’s Agents. As a seller, how do you get started with a short sale?
You made the right choice with Harford County's TOP short sale realtor, Robert B. McArtor. An expert in the Short Sale and Foreclosure market, Robert of Maryland HOMES Team with RE/MAX Components will walk you through the process every step of the way. I challenge you that before you choose a real estate professional to help with your short sale, check out their success record. We have a 96% success rate with getting bank approval and in most cases, getting the homeowner moving expenses credited to them at closing!.
Our team of short sale specialists are trained in getting the process done with the least amount of problems. The Best Short Sale Real Estate Agent in Harford and Baltimore County
….. A short sale requires knowledge and experience. Short sale realtor Robert McArtor has both.
He has…. the right forms to complete for every step of the process
the deadlines necessary to complete a short sale anywhere in Maryland
how to ascertain the types of loans the lender will accept for the property
what types of offers are acceptable to the banks.
Finally, Robert B. McArtor understands short sales in Harford and Baltimore County. He can help whether you are buying or selling. From the initial consultation to the closing, He will provide the most professional service and the quickest turn-around you can find in the Harford County, Baltimore County short sales market.
Contact Robert McArtor of Maryland HOMES Team with RE/MAX Components today
443-392-4833 for help with any short sale real estate transaction in Harford County, Baltimore County or the surrounding areas.
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