Short Sale Attorneys in Columbia, MD
How to Short Sale a Home in Maryland
Individuals facing foreclosure on their homes often choose to short sale their house instead of allowing it to be foreclosed on. If you're underwater on your home loans (meaning you owe more on your home than it's actually worth), a short sale may allow you to improve your financial situation.
If you're considering a short sale, you should work with an attorney to determine whether or not a short sale is right for you. At Ward & Co Law, we work with Columbia, MD residents to help them short sell their homes successfully.
How Do Short Sales Work?
Homeowners who are significantly behind on their mortgage or are underwater on their home are caught between a rock and a hard place. Realistically, they have a choice to make: they can either short sell their home, or allow it to be foreclosed on.
In a short sale, the home is put on the market, often for a drastically reduced price, as a short sale or subject lender deals to buyers. The homeowner then uses the money made from the short sale to repay the mortgage lender.
To list a short sale home, the homeowner needs to work with the lender holding the mortgage. If the mortgage lender (typically a bank) agrees that short selling the home is the correct decision, they'll provide the homeowner with documentation that approves the home's short sale status. This documentation usually contains information from the homeowner that justifies the short sale.
Once approved for a short sale, potential buyers can negotiate with the homeowner. Once the buyer arrives at a satisfactory offer, they have to seek approval from the lender (again, usually a bank) to finalize the sale of the home.
Since mortgage lenders lose money on short sales, the process for short selling a home is often long and complicated. However, most lenders would rather recoup at least some of the value of the home with a short sale rather than lose it all with a foreclosure.
Are There Disadvantages to Short Selling My Home?
Obviously, short selling isn't the ideal way to put a home on the market. Homeowners who choose to short sell face a few disadvantages:
- You don't make money off the house. While most lenders will agree to cancel debts on a short sale, homeowners don't leave short sales with more money in their pockets. The money they make on the house goes back to the lender to help offset whatever debts the homeowner owes on the property.
- Your credit will drop. Short selling negatively affects credit. However, short selling is still better for your credit than foreclosure. A foreclosure can be a permanent stain on your credit score, whereas a short sale typically only affects your credit for 18-24 months.
Even though short sales have their downsides, they're preferable to foreclosure in almost every situation. If you're thinking about short selling your home, an estate lawyer can help determine whether or not a short sale is the best option for you.
Contact Our Short Sale Lawyers in Columbia, MD
At Ward & Co Law, our committed lawyers will help you navigate the short sale of your home successfully. To receive a free consultation from our team, contact us online or via phone at (410) 775-5955.
