When homeowners in Maryland fall behind on their mortgage payments or are worried about losing their homes to foreclosure, one possible option they might want to consider is the short sale. Short sales, like any other real estate transaction, can be complicated, and require the careful consideration of multiple factors. The Coyle Law Group has helped numerous property owners in Maryland navigate the short sale process.
In some situations, a homeowner trying to sell a home might not be able to sell the property for enough to cover the remaining mortgage balance. This commonly happens, for example, when property values decline rapidly. Because the proceeds of such a sale are less than, or “short” of, the amount the mortgage holder still owes,the owner faces the possibility of having to continue to make mortgage payments on a property they no longer own. Many homeowners in this situation are under a great deal of financial pressure to sell their home, and many face foreclosure if they cannot find a buyer.
To prevent a foreclosure, the mortgage lender and the homeowner can agree to a short sale. With a short sale, the lender effectively allows the homeowner to sell the home and use the proceeds to repay the remaining mortgage, even if the sale price is less than the amount owed. Short sales are sometimes referred to as pre-foreclosures.
Before you consider a short sale, it’s vital that you understand what the process entails. In general, a short sale is not something that everyone can, or should, pursue. For example, short sales are often good choices for people under financial pressure who want to avoid foreclosure. While a foreclosure will seriously damage your ability to obtain new lines of credit, a short sale is much less damaging.
However, short sales are not quick fixes. Lenders commonly take months to approve a short sale, and homeowners who need immediate relief might be better off pursuing a bankruptcy or mortgage renegotiation.
There are also many other factors that go into the short sale decision-making process. Your attorney will advise you about all the positives and negatives surrounding the process.
When homeowners in Maryland experience financial difficulties and have to face the possibility of foreclosure, seeking out advice from experienced short sales attorneys can be a lifesaver. The stress of facing a foreclosure and not understanding what options you have can be something that keeps you up at night.
If you find yourself in such a situation, call us immediately at 410-884-3180. The attorneys and staff at The Coyle Law Group have years of experience assisting clients through the short sale process, and can help you with yours. We will listen to your story, tell you what your options are, and advise you on what we believe to be the best course of action. Once you make your decision, we will help you secure the best possible outcome.