What is a Short Sale?

     A short sale is a negotiation in which the homeowner qualifies and the mortgage company or companies accept less that the full balance of the loan at closing. A relatively new solution to a financial crisis, the short sale has been used successfully in Maryland and in Baltimore as one of the last options before foreclosure. With plummeting property values, this can save many people from foreclosure and even bankruptcy. More and more lenders are willing to consider short sales because they are much less costly than foreclosures.     


     Top 16 Seller Benefits of a Short Sale:

  1. No additional funds required at closing
  2. Lender pays real estate commissions
  3. Avoid foreclosure and many times a judgment
  4. Preserve credit
  5. Commission and fees paid by lender.  No cost to seller.
  6. Does not go against your credit
  7. Negotiated settlement
  8. No attorney fee
  9. Seller's peace of mind
  10. Buy again in 2 years
  11. Liens Negotiated
  12. Stay in the property longer
  13. Smoother transition
  14. Avoid foreclosure on your credit
  15. May avoid bankruptcy
  16. Less worry

      A short sale requires a Certified Distressed Property Expert who understands the complexity of this process and the extensive documentation required.  The success of a short sale depends on the knowledge and ability to work closely with lenders, banks, accountants, attorneys and REALTORS®.  The short sale is one of the most important aspects of real estate in today's market.

  •  Act now to avoid possible foreclosure! Call Tim Hodgin 443-745-2734 or email TimHodgin@KW.com.  I can help. 


Not All Real Estate Agents Are Qualified Short Sale Experts!

Top 10 questions to ask your real estate agent before

you sign on the dotted line?

1. Can my real estate agent explain the short sale process to me?
2. How do I know if my property will qualify for a short sale?
3. Does my real estate agent know what information I will need to provide to the lending institution?
4. Does my real estate agent know what ?hardship? categories qualify me as a short sale candidate with the lending institution?
5. Does my real estate agent know how to create an effective short sale strategy?
6. Does my real estate agent have prior experience and specialize in working with homeowners and lending institutions to create a short sale transaction.
7. Does my real estate agent know how to market my home since efficient timing is essential.
8. Does your real estate agent know how to price your home?
9. Does your real estate agent have a pricing/marketing campaign for 14/30/45days?
10. How do you know if you are really comfortable with the real estate agent the you are selecting?

Top 12 Reasons To Avoid Foreclosure!


1.) The homeowner will always have to disclose that they have had a foreclosure on any mortgage application and (many job applications) that you submit in the future and this can have an adverse affect on your future mortgage rates.

*This is the only credit item that is asked specifically and does not rely on what is on an individuals credit report. There is no 7 year time limit on this item.


2.) Credit scores will be lowered by 300+ points (per loan) and a foreclosure is the most devastating credit issue you can have in relation to future credit availability.


3.) The homeowner will be ineligible for a government insured loan for 5 to 7 years (only 2 years in a short sale) *A Foreclosure is the one credit report item that is almost impossible to have repaired. 

4.) Your lender can seek a deficiency judgment against you and collect for any amount they do not recuperate at bank sale.


5.) Many employers run credit checks on prospective employees and foreclosure is one of the top items that will put a potential new hire in jeopardy.



6.) Many current employers run credit checks and a foreclosure can put a current position in jeopardy.


7.) Security clearances and government positions including but not limited to military and law enforcement can be jeopardized by a foreclosure. *Revocation of security clearance can result in job reassignment or loss.


8.) The tax liability in a foreclosure may be much higher than in a property negotiated short sale since in most cases cancelled debt will be higher.


9.) As your Certified Distressed Property Expert (CDPE) I will explore every option with you and work towards a resolution.


10.) While it may not seem like it now there will come a time where your current financial troubles will pass. You will feel much better knowing that you did everything you could to avoid this devastating financial consequence so many people face today.


11.) Protect and Preserve Homeownership.


12.) Protect and preserve Homeowner Equity.


For more information Please visit my Short Sales (preventing foreclosure) Page

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The Tim Hodgin Home Selling Team of Keller Williams Excellence - 443-745-2734 (d) 410-560-5858 (o)
2331 York Rd. Suite 100 Timonium, MD 21093
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