Baltimore Short Sale

The Maryland Real Estate Short Sale Process

A real estate short sale is a transaction wherein a homeowner gets permission from their lender to sell their home for less than the outstanding balance owed of the property.  Financial hardship is the main reason why there are homeowners who decide to sell their property as a short sale. In some cases, homeowners who are behind on their payments will choose to give up their real estate through the short sale process, as this typically does not tarnish their credit rating as much as a foreclosure would.

Many homeowners maintain hope with a short sale because typically they can still purchase a home a couple of years after a short sale. It is known that those who already have foreclosure records are least likely to be approved of yet another home loan or mortgage, at least for a very long time. On the other hand, those who choose to undergo a short sale instead of a foreclosure are oftentimes forgiven of their debt by the lenders. If you highly value credit reputation, then a short sale just might be the ideal option when you’re seriously considering in need of selling your home.

When should you consider a Maryland short sale?

If you have found yourself to be in a situation which has either caused you to become delinquent in your mortgage payments or your particular situation has no real hopes of getting better relatively soon, then qualifying for a short sale could be an option for you. Foreclosure should never be an option for you as this will not do any good to your credit standing at all. In a country where your financial stability and ability is measured by credit standing, you wouldn’t want to have a foreclosure record under your name. Financial transaction heavily depends on your credit standing, and one which is already tarnished with a credit record is most likely to be denied of a home loan in the next seven years or so. Other options with the lender such as repayment and loan modification may look like viable options to keep your home from foreclosure. But the changes in the features of a loan may still make it harder for homeowners to stay current on their mortgage.

The step-by-step real estate short sale process

Report to the lender

Informing the lender of your idea to short sell your property is the first thing that you need to do before anything else, because after all, you will need their permission. Make sure to provide all the information that they seek. This will assist them in providing you with the information about the documentation and requirements (short sale package) that you need to submit to begin the Maryland short sale process.

Report of estimated costs and expenses

An intelligent move in the short sale process is hiring a short sale Realtor; they will be able to help prepare this report for you. Your lender will more than likely send out for a BPO, also known as a brokers price opinion, which will give the estimates of the worth of the home as well as the market value of homes being sold around it.

Statement of income and assets

Your main goal when submitting requirements to the lender is to provide them with a clear picture that your current situation is well suited for a short sale. Submit all accurate information in order for the lender to evaluate if your case should be approved of a short sale or not. Providing the lender with false documents may mean rejection of a short sale.

Simply provide the lender with all the financial information that is currently under your name. Enlist all assets, if you have any. Enumerate all the financial accounts that you have and anything of tangible value. This will give owners a clearer and better picture of where you are on a financial standpoint.

Submit a hardship letter

A homeowner needs to make a compelling case when writing a hardship letter when applying for a short sale. Sob stories should be convincing, but not exaggerated. Try to put down everything in writing. A well-made and accurate hardship letter will help your case to appear more appealing to lenders. Your short sale specialist should be able to assist you with the proper content for your letter.

Submit purchase agreement to lenders

Your agent will need to send the purchase agreement to your lender as soon as soon as possible since they will need to review and evaluate the purchase agreement before approving the short sale. Prepare to make a compromise, as the majority of lenders are known to change the amount of commission, among other items. Your specialist will be able to handle all negations for you.

The short sale process can be quick, or it can be lengthy. A lot of this depends on how quickly you gather the acquired documents and how many short sales your lender may be doing at that moment. As previously stated, I strongly encourage you to seek the help of an experienced Maryland short sale Realtor, this way, you are side by side with a professional who knows the ins and outs of the short sale process!

www.Short-Sale-Specialists.com

877-737-4903

Ask a local short sale specialist!

Do you need to stop foreclosure on your Baltimore MD home,? Need a Baltimore Distressed Property Expert in short sales to offer free broker short sale services? Our Baltimore MD area Distressed Property Expert real estate agents are here to help, and are Certified or trained in the Maryland Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Copyright First Coast Realty Associates 2012

Is the HAFA Short Sale Program Right for You?

The economic downturn that has affected the real estate market in the United States can no longer be described as gloomy. The word is not enough to describe the worst thing that has hit the housing industry in the country. Distressing can be the apt word for the long-running real estate economic meltdown that hit the states. In 2009 alone, a record high of 2.8 million homeowners had to face foreclosure. And in the following year, the statistics of an estimated 3.5 million homeowners facing foreclosure proved to be a tale-tale sign that the housing mess will remain for some time. Real estate experts even say that the downturn can last until 2012.

There are many options by which homeowners can avoid a foreclosure but one of the best options to choose now is the short sale. Traditional short sale transactions however, tend to be too slow for homeowners to avoid an impending foreclosure. And this is the reason why the Obama administration introduced the Home Affordable Foreclosure Alternatives. In the HAFA program, homeowners are supported to go with a short sale in order to avoid a foreclosure. If you are one of those homeowners who are near or facing foreclosure on your home, you should first ask if the HAFA short sale program is right for you. Here are the basics of the HAFA short sale program to help you discern if it can assist you in avoiding an impending foreclosure of your home.

What is the Goal of HAFA Short Sale Program
Since the real estate economic meltdown has struck the housing industry and is expected to be the prevailing atmosphere in the years to come, the HAFA short sale program is designed to help homeowners settle their mortgage debt and at the same time avoid foreclosure of their homes in the process. Nowadays, it is not a rare case for the amount of the mortgage debt to be greater than the value of your home. And in this instance, the HAFA short sale can be helpful of erasing your mortgage debt without going through the process of foreclosure. Applying to get included in the HAFA program is the best option if the homeowner is also not eligible for any other home loan assistance programs such as a loan modification.

Eligibility for HAFA Program
In order to earn eligibility to the HAFA short sale program, there are five criteria that homeowners who are facing an inevitable foreclosure must meet.
These are:
1. The house should be the principal personal residence of the homeowner. Exception to this rule is if the property has been vacant for a long time or has been rented out less than a year. The homeowner should also not have bought any property to be his principal residence during these times.
2. The mortgage loan amount should not exceed $729,750 if it is 1 unit. For more than 1 unit, here is the amount bracketing for the amount of mortgage loan covered by HAFA.
• $934,200 = 2 units
• $1,129,250 = 3 units
• $1,403,400 = 4 units
3. The homeowner should show proof of hardship like loss of job, loss or decrease of income stream, unexpected increase in expenses due to emergency medical allocation or the likes, or an increase in mortgage loan payment
4. The first mortgage should have originated before January 1, 2009
5. If the mortgage loan payment is more than 31% of the borrower’s monthly income
It must be noted by the homeowner applying for eligibility to the HAFA short sale program to pass all these criteria. A negative answer to any of these criteria can mean failure to qualify to the program.

Eligibility Issue
So what should the homeowner do when he does not pass the criteria set by HAFA. The best strategy in this case is to find and hire a Baltimore short sale Realtor. Actually, this option or strategy is what HAFA is recommending to all homeowners who failed to pass their screening process. Short sale agents are known to be an expert in terms of short selling a house. More than that, they know the intricacies of any US-government sponsored housing program that can best suit and meet the needs of homeowners.

What if you are Current with Your Mortgage Payments?
Another issue that can affect your eligibility for HAFA is if you are current with your mortgage payments. How can you be eligible for HAFA when there is basically no hardship situation showing on your loan payments history? This can be resolved by calling up your lender or insuring company. You will need their approval in order to short sale your house using the HAFA short sale program.

According to real estate experts, the housing economic meltdown will continue for some time. And during this prevailing housing mess, homeowners who are having a hard time paying their mortgage loan will face foreclosure with great possibility. The trend now is to find a leeway that can solve a foreclosure. Homeowners are likely to search and find ways to prevent this since a foreclosure of their homes besides the obvious result of losing a home can give their credit record a major blemish for at least the next ten years.

Homeowners who cannot avoid a foreclosure of their home should be wise to opt for a permanent solution to their mortgage loan problems. And one of the best solutions that they can avail is the short sale. The only thing they have to do now is to find out whether they can qualify for the government-sponsored housing program or seek qualified short sale agents that can help them face foreclosure. Contacting a short sale specialist Realtor about the HAFA Governement program may just be a jump start to rest of your life!

www.Short-Sale-Specialists.com

877-737-4903

Ask a local short sale specialist!

If you are trying to stop foreclosure on your Baltimore MD home, then contact a Baltimore short sale Realtor! Our specialists provide FREE short sale expert services to Baltimore homeowners in hardship. Contact us right now and let’s get your short sale started! Need a Baltimore Distressed Property Expert in short sales to offer free broker short sale services? Our Baltimore MD area Distressed Property Expert real estate agents are here to help, and are Certified or trained in the Maryland Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Copyright First Coast Realty Associates 2011

What are the Qualifications for a Short Sale

Many homeowners facing a foreclosure just may not know what the qualifications are for a short sale.  A number of these homeowners think the process is too difficult, time consuming, or that they can’t qualify.  Contrary to these however, the requirements or qualifications are easy to meet and are generally the situations that put homeowners near a foreclosure in the first place.

What is a Short Sale?

Before seeking what are the qualifications for a short sale, a homeowner should first understand what a short sale is.  A short sale is basically one of the options available for homeowners wanting to avoid a foreclosure.  The complexity of the whole process lies on the ‘short’ of the sale that will be enforced on the property.  Simply put, you will be selling your home for less than the mortgage amount in this strategy to avoid a foreclosure.  But in order to sell your home ‘short’ of its mortgage, you should have good reasons to; you should be qualified.  And these qualifications are usually set by lenders.

What are the qualifications for a short sale from a private lender?

Your current lender has the final decision in granting you a short sale.  For you to qualify for the program if your mortgage is under a private lender, here are the conditions that should be met.

Decreased home value

One of the strong reasons a homeowner can use to make the lender agree to a short sale is a decrease in home value.  Specifically, the decreased home value should be lower than the mortgage.  Because no lender would naturally agree to a short sale if the home can be sold more than the amount of the mortgage; home values are the determinants of price that prospect buyers will be willing to pay.   Therefore, a homeowner should ask a real estate professional for a quote or comparative market analysis.  If the result of the analysis is a home value larger than the mortgage, then the short sale is not necessary.

A destitute circumstance of the homeowner

Another good reason for a lender to approve a short sale is a destitute circumstance or hardship that restrains the homeowner to meet monthly payments.  This circumstance should be explained in a letter called the Letter of Hardship.  A few of the acceptable hardship conditions include death of the homeowner or family member, sickness of the homeowner or family member, bankruptcy, divorce, unemployment and decrease of income.
Being unhappy with neighbors or having made a bad purchase decision with the said property does not constitute a hardship.

No other assets to pay off the mortgage

The homeowner will also be required to submit proof that he or she has no other assets that can be used to pay for the payments in default and future payments.  A statement of assets and liabilities supported by pay slips, income tax returns, non-cash investments and bank statements are usually enough supplement to the claim of no asset availability.  To qualify for a short sale, total liabilities should be more than the net assets.  Therefore, you should have a negative figure on the bottom of your statement of assets and liabilities.  If not, a lender might point out other options in order for you to pay your mortgage; For instance, sale of non-cash investments or other real estate.

What are the qualifications for a short sale under HAFA?

A short sale can also be backed by a government program called Home Affordable Foreclosure Alternatives or HAFA.  It is under the bigger program called Making Home Affordable Program initiated by President Obama.  Compared to short sale alternative from a private lender, HAFA offers several benefits such as lenders receiving 6% on the loan balance or a maximum of $ 6,000 and sellers or homeowners receiving a relocation assistance of up to $ 3,000 which will be put on escrow until the sale is closed.

So what are the qualifications for a short sale under this program?  They are:

-Property should be personal residence; currently occupied by the homeowner

-The unpaid mortgage amount should be no more than $ 729,750 for a single unit; other limits are set for other types of homes

-The homeowner should be in default or is about to be in default of several monthly payments

-Mortgage was taken before January 1, 2009

-Homeowner should be in a hardship situation

Apart from these requirements, a homeowner or seller must also be rejected by the Home Affordable Modification Program or HAMP which covers loan modification.  Therefore, a homeowner should have first applied for a loan modification under the HAMP.  Requirements for HAMP are the same with HAFA but with the addition of: mortgage payments should not exceed 31% of homeowner’s monthly income.

Additionally, when applying for a short sale through HAFA, a homeowner needs to check if his or her mortgage lender participates in the program.  Otherwise, a short sale under the private lender is the only option available.

When faced with a foreclosure, a short sale is one of the best options that a homeowner should look into.  It might be a lengthy process but it can be
possible with the right assistance from a real estate professional and knowledge of the whole process.  However, seeking this option starts with knowing the qualifications for a short sale. I encourage you to speak with a Short Sale Specialist Realtor in regards to any questions your may have about the short sale process and how you can qualify! Contact us now!

www.Short-Sale-Specialists.com

877-737-4903

Ask a local short sale specialist!

Are you looking for a Baltimore MD short sale Realtor? Look no further! Our stop Maryland foreclosure specialists provide FREE short sale expert services to Baltimore homeowners in hardship. Call today to see if you qualify for a short sale! Need a Baltimore Distressed Property Expert in short sales to offer free broker short sale services? Our Baltimore MD area Distressed Property Expert real estate agents are here to help, and are Certified or trained in the Maryland Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Copyright First Coast Realty Associates 2011

Many people considering a Maryland short sale are still on the fence about it. Maybe you aren’t late on payments but you are struggling financially to get all of your bills paid.

Should you continue to wait it out in hopes that your financial situation improves?

Would it be easier to just stop paying your mortgage and allow your home to foreclose?

Would you even qualify for a short sale?

These are all questions we receive constantly from homeowners in hardship. Some people want to short sale but make too much money to qualify. Others are barely able to food on the table but refuse to sell their home. Every situation is different so please understand we are not telling you what you should do. We are simply here to inform borrowers of options that are available, as well as facts that are generally unknown to homeowners.

Qualifying for a Baltimore MD Short Sale

When you decide to short sale your MD home, you generally stop making payments. Most banks will not approve a short sale on a home if the borrower is up to date on payments. That would appear as if the borrower weren’t in hardship. To qualify, in addition to owing more on your home than it is worth, you must prove to your lender that you are facing a financial hardship (unemployment, income decrease, divorce, relocation, medical bills, etc.)

Keep in mind that just because you stop making your mortgage payments does not mean you automatically qualify for a short sale!

Waiting it out…

If you have reason to believe you will soon receive a great paying job, excellent! Hold on to your home if you think you’ll be able to afford it soon. However, if you suspect to be in hardship for quite sometime, you shouldn’t delay the inevitable. Some people scrape up money just to pay their mortgage one extra month, only to end up in foreclosure. Don’t be naive when it comes to your financial situation. It benefits your lender if you short sale your home compared to foreclosure. They will likely lose much less money by going through the short sale process. Don’t automatically assume that you are hurting your bank by selling your home short, you are helping them!

www.Short-Sale-Specialists.com

877-737-4903

For more information on the short sale process or to receive a free evaluation of where your home stands in today’s market, fill out the form below.

Are you looking for a Baltimore short sale Realtor? Look no further! Our stop Baltimore foreclosure specialists provide FREE short sale expert services to Baltimore MD homeowners in hardship. Call today for short sale information on the Baltimore short sale process and to see if you qualify for a short sale! Need a Baltimore MD Distressed Property Expert in short sales to offer free Chase short sale services? Our Baltimore area  Distressed Property Expert real estate agents are here to help, and are Certified or training in the Maryland Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Our organization does NOT directly offer short sale or foreclosure rescue services in the state of Maryland. CLICK HERE for more information on our
services.

Copyright First Coast Realty Associates 2011