Category: Short Sales and Hardships

Top 5 Mistakes to Avoid When Selling Your Home via a Short Sale

Posted by Atlas Home Group on

Selling a home can be a daunting task, especially when you’re considering a short sale. A short sale occurs when you sell your home for less than what you owe on your mortgage. While it might seem like an appealing solution to avoid foreclosure, there are some pitfalls that you need to avoid. Here are the top five mistakes to steer clear of when selling your home via a short sale:

1. Not Seeking Professional Advice:

One of the most significant mistakes homeowners make is not seeking professional advice. Selling a home through a short sale involves intricate legal and financial processes. Consulting a qualified real estate agent or a real estate attorney can help you understand the implications of a short sale and guide you through the necessary paperwork. Their expertise can save you from costly errors and ensure a smoother transaction.

2. Neglecting to Communicate with Your Lender:

Open and honest communication with your lender is crucial during a short sale. Some homeowners avoid contacting their lenders, hoping the situation will resolve itself. This is a mistake. Lenders appreciate borrowers who are proactive about their financial difficulties. We often find that lenders are flexible and willing to consider the short sale when our attorney communicates professionally on our clients’ behalf.

3. Incorrectly Pricing Your Home:

Setting the right price for your home is essential for attracting potential buyers in a short sale scenario. Overpricing your property can lead to limited interest and prolonged listing times, making it harder to secure a buyer. Conversely, underpricing your home might lead to significant financial losses. Consult your real estate agent to determine a competitive and realistic price that reflects the current market conditions.

4. Neglecting Home Maintenance:

Even in a short sale, maintaining your property is vital. A well-maintained home is more appealing to potential buyers and can lead to a quicker sale. Neglecting repairs or upkeep can decrease the perceived value of your home, potentially causing interested buyers to walk away. Put in the effort to keep your home in good condition to maximize its attractiveness to potential buyers.

5. Ignoring the Short Sale Process Timeline:

Short sales typically take longer to complete than standard home sales due to the additional negotiations involved with the lender. Not understanding this extended timeline can lead to impatience and frustration. Set realistic expectations from the beginning and be prepared for potential delays. Staying patient throughout the process can help you navigate any obstacles that may arise.

It’s never fun having to make a significant financial decision, but avoiding these common mistakes can significantly improve your chances of success. You can navigate the short sale process more smoothly and find a viable solution for your financial situation. Remember, taking the time to avoid these errors can make all the difference in achieving a successful short sale.  Contact us today to learn how we can help you.

A Guide to Short Selling Your Home: Important Steps for Sellers

Posted by Atlas Home Group on

Short selling a home can be a unique and challenging process for sellers. It involves selling the property for less than what is owed on the mortgage, with the lender’s approval, to avoid foreclosure and financial strain. To succeed in this journey, sellers should follow these essential steps:

  1. Find a Knowledgeable Real Estate Agent: Get help from a real estate agent experienced in short sales. They can guide you through the process, negotiate with the lender, and attract potential buyers for your home.
  2. Organize Financial Documents: Gather important financial papers like bank statements, tax returns, and pay stubs. These documents show the lender that you are facing financial difficulties and help justify the need for a short sale.
  3. Communicate with the Lender: Contact your lender’s loss mitigation department or short sale department early on to let them know about your plan for a short sale. Understand their requirements and the paperwork needed to start the process.
  4. Determine the Right Price: Work with your agent to select pricing that is comparable to other sold homes. This competitive pricing will help attract buyers and increase the chances of lender approval.
  5. Create a Comprehensive Short Sale Package: Prepare a complete package with documents like a hardship letter explaining your financial situation, a market analysis, financial statements, and a signed purchase offer. This package convinces the lender to approve the short sale.
  6. Market Your Home: Work with your real estate agent to market your home effectively. Write an appealing description, take high-quality photos, and use virtual tours to showcase your property’s features. Online listings, open houses, and networking with other agents can help attract potential buyers.
  7. Be Patient and Persistent: Short sales can take time and involve negotiations with the lender. Be patient and ready for delays and paperwork. Stay persistent to keep the process moving forward.

Remember, the requirements for short selling a home can vary depending on your lender, location, and situation. Reach out to us today to take the first step toward eliminating the financial burden.

Key Short Sale Advantages

Posted by Atlas Home Group on

A short sale can offer numerous benefits to homeowners who find themselves in financial distress or need to sell their property quickly. Here are the key advantages of a short sale:

  1. Avoiding Foreclosure: One of the primary benefits of a short sale is the ability to avoid foreclosure. When homeowners are unable to keep up with mortgage payments or owe more on their home than its current market value, they may face the risk of foreclosure. Foreclosure can have severe consequences, including the loss of the property and long-term damage to credit. A short sale allows homeowners to sell their property for less than what is owed on the mortgage, settling the debt with the lender and preventing foreclosure.
  2. Minimizing Credit Damage: While a short sale does have an impact on credit scores, it is generally less damaging than a foreclosure. A foreclosure can stay on your credit report for up to seven years and significantly impact your ability to obtain credit in the future. In comparison, a short sale may result in a smaller drop in credit score, and the negative mark typically remains on the credit report for a shorter period. This can allow homeowners to rebuild their credit more quickly and regain their financial stability.
  3. Debt Relief: With a short sale, homeowners can negotiate with the lender to forgive the remaining debt after the sale. In some cases, the lender may agree to release the homeowner from any further obligation to repay the shortfall between the sale price and the outstanding mortgage balance. This debt forgiveness can provide significant financial relief to homeowners who are struggling to meet their financial obligations. It eliminates the burden of the remaining mortgage debt, allowing them to start anew and move forward with their lives.
  4. Potential for Faster Sale: Short sales can often be expedited compared to traditional sales. As the homeowner is motivated to sell quickly, the price is typically set below market value to attract potential buyers. This can attract investors or individuals looking for a good deal, leading to a faster sale and reducing the time and stress associated with the selling process. Homeowners can avoid the lengthy foreclosure process, which can be time-consuming and emotionally draining.
  5. Relocation Assistance: For individuals facing military relocation, out-of-state promotions, or similar situations, a short sale can provide valuable assistance. Some relocation programs, particularly those associated with the military or certain employers, may offer incentives or benefits for individuals who choose a short sale over foreclosure. These programs acknowledge the unique challenges faced by individuals who need to move quickly and may provide financial assistance or additional support during the transition. This can help alleviate the financial burden associated with the move and make the relocation process smoother.
  6. Maintaining Dignity and Control: Opting for a short sale allows homeowners to take a proactive approach to their financial situation. It provides them with the opportunity to have more control over the selling process and negotiate with the lender to find a solution that benefits both parties. This can help homeowners maintain a sense of dignity and control over their financial future. By actively participating in the short sale process, homeowners can make informed decisions and work towards a resolution that best suits their needs.
  7. Legal and Emotional Relief: Foreclosure can be a stressful and emotionally challenging experience for homeowners. It often involves legal proceedings, public auctions, and the loss of one’s home. Choosing a short sale can provide legal and emotional relief by avoiding the foreclosure process. Homeowners can sell their property in a more controlled manner, with the assistance of real estate professionals who specialize in short sales. This can help minimize the emotional toll associated with foreclosure and provide a smoother transition to a new living situation.

It’s important to note that the specific benefits and outcomes of a short sale can vary depending on individual circumstances, lender policies, and local real estate market conditions.

Consulting with a real estate professional or financial advisor experienced in short sales can provide personalized guidance and help homeowners make informed decisions based on their unique situation. If you’re facing this situation, do not hesitate to contact us to reach out to our experienced Short Sale team! 

Maryland Tops List for US Foreclosure Rates January 2023

Posted by Atlas Home Group on

As of January 2023, the foreclosure rate in Maryland is a topic of concern for many residents and policymakers. According to recent data, Maryland has one of the highest foreclosure rates in the country, with many families struggling to make their mortgage payments.

The foreclosure rate in Maryland has been steadily increasing over the past few years, with January 2023 marking a particularly difficult period for many homeowners. According to data from the Maryland Department of Housing and Community Development, there were over 6,000 foreclosure filings in the state during the month of January 2023 alone. This represents a significant increase compared to the same period in 2022, when there were just over 3,000 filings.

The rise in foreclosure rates can be attributed to a number of factors, including the ongoing economic impact of the COVID-19 pandemic, as well as an increase in the cost of living and housing prices in the state. Many families are struggling to make ends meet, with rising healthcare costs, job loss, and other financial burdens making it difficult to keep up with mortgage payments.

To address the foreclosure crisis in Maryland, policymakers and community organizations are working together to provide support to homeowners who are struggling to keep their homes. This includes offering financial assistance, counseling services, and legal representation to those who are facing foreclosure.

In addition, there are a number of programs and resources available to help homeowners navigate the foreclosure process and protect their homes. For example, the Maryland Department of Housing and Community Development offers a variety of programs to assist homeowners, including the Maryland Mortgage Program, which provides financial assistance to eligible borrowers to help them keep their homes.

It is important for homeowners in Maryland to be aware of their options and to seek help if they are struggling to make their mortgage payments. By working together and taking advantage of the resources available, we can help to reduce the foreclosure rate in Maryland and support families in keeping their homes.

The foreclosure rate in Maryland in January 2023 is a cause for concern, but it is not a hopeless situation. Community organizations and policymakers are working to support homeowners and reduce the number of foreclosure filings in the state. If you find that staying in your home simply isn’t feasible or desirable, rather than opt for foreclosure, contact us to discuss your options for selling right away.

Hardship: Pandemic and Tired Landlords

Posted by Atlas Home Group on
The pandemic has created a new kind of tired landlord in 2021. Historically tired landlords
were property owners who had some good tenants yet had enough bad tenants which drove
them to sell their properties. This week the Center of Disease Controls announced yet another
extension to the eviction moratorium.

One in Four Tenants is Behind

It is estimated that of approximately 23 million rental units in the US, approximately 6 million renters are past due on their rent payments. With rents past due on nearly 1 in 4 units, landlords are unsure how they will recapture what is owed to them.

The truth is, it’s unlikely that they will.

Post-pandemic landlords are a whole new kind of tired after over 12 months of eviction halts.
This begs the question – has the pandemic caused a legitimate hardship for landlords? All signs
point to yes. We are currently seeing favorable results for homeowners who are underwater on
their mortgages including those who are not occupying the properties such as landlords.

Who Will Buy My Property?

Investors are also buying properties at record numbers. Investors are motivated enough that we
are seeing some buy properties with slow paying tenants. This could be a rarely seen perfect
timing for tired landlords begging for relief and investors looking to grow their portfolios.

Where do I go for Help?

If you’re a landlord who is ready to move on from your investment properties, you might need a short sale or a quick sale. Either way, reach out. You may now have a qualifying hardship. Talk with a team of agents experienced with helping sellers in distress.

Atlas Home Group has over a decade of experience in this area. Please call us at 443- 660-8080 or

visit our website to submit a consultation form on our website. We are here to answer your questions so you can choose whether selling now is right for you.

Short Sale vs. Deed in Lieu of Foreclosure

Posted by Atlas Home Group on

Not having enough money to pay your monthly mortgage is a common issue faced by millions of Americans. If you’re having trouble paying your monthly mortgage on time and your lender has denied a request for a loan modification plan or if the loan modification seems unmanageable, there are a few options to consider prior to foreclosure: a short sale (if the equity is underwater) or a deed in lieu of foreclosure.

If you can relate to this situation, you may not be not sure which path is right for you. In this article, we will go over the pros and cons of short sales and a deed in lieu of foreclosure. You can use these as an informal guide when considering your options. Before finalizing your choice, consult a real estate agent experienced with short sales and distressed properties. Agents experienced in these areas understand that these sales are about you, the homeowner, moreso than they are about the house itself.

What Is a Short Sale?

A short sale is when you attempt to sell your house for less than what you owe to the bank. For a short sale to take place, your lender must agree to allow it. There are requirements for the owner to complete a short sale since the lender wants to ensure everything is done to recoup any potential loss. Typically, homeowners are late on their payments before a lender to consider a short sale.

Upon the sale of your home, you may or may not owe money to the lender, depending on your situation. Short sales typically occur when property values have gone down significantly in the area, substantially affecting property value.

The Benefit of a Short Sale

The benefit of a short sale is that you are provided with an avenue to sell your house and “make good” with the bank. Essentially, the benefit of a short sale for the seller is that they can wash their hands and walk away from the situation. There is also an opportunity to request a waiver of the deficiency amount.

Does a Short Sale Affect My Credit?

Yes, a short sale will make a significant impact on your credit score. The higher your score before the short sale, the more significant the drop will be, up to -150 points. Each credit profile will be impacted differently.

What Is a Deed In Lieu of Foreclosure?

We know that foreclosure is not a fun option, so what exactly is a deed in lieu of foreclosure? Technically, a deed in lieu of a foreclosure is a document that transfers the title of the property from you to the bank in exchange for being relieved of your debt.

When struggling to make monthly payments, a homeowner may request a loan modification from their lender, which is a new agreement at lower monthly payment terms. However, if a loan modification is no longer an option, a deed in lieu of foreclosure might make sense.

The Benefit of a Deed in Lieu of a Foreclosure

The main benefit of a deed in lieu of foreclosure is how quickly a homeowner can wash their hands of a property they no longer want or can afford. If approved, the process is quick and efficient, and when it’s over and done.

Foreclosures can be incredibly time-consuming and costly by nature. The process is also public and out in the open. By contrast, a deed in lieu of foreclosure is a private transaction with your bank and you.

Reasons You Might Be Rejected for a Deed in Lieu

If your home has depreciated in value to the point that it is worth less than what you owe to the bank, your lender may only accept a deed in lieu of foreclosure if you can pay the difference.

If there are liens (HOA, condo, utilities, etc.) or tax judgment on the property, a lender will not agree to a deed in lieu. Also, there are some government-backed loans where the lender is only given a payout if the home goes to foreclosure. In this instance, your lender will not agree to a deed in lieu of foreclosure.

Reasons Why Your Lender May Be Interested

Rather than pay legal fees to undertake foreclosure proceedings, your lender might be happy to take control of your property and move on with business. In many cases, your lender will save both time and money by agreeing to a deed in lieu of foreclosure, rather than foreclosing on the property.

Does a Deed in Lieu of Foreclosure Affect My Credit?

A deed in lieu of foreclosure will have a negative affect on your credit. You may also owe taxes on your loan forgiveness if it totals more than $600.

What If I Have Multiple Mortgages?

It is still possible to partake in a short sale with multiple mortgages. But it is not an option for a deed in lieu of foreclosure.

Where do I look for help?

If you’re in a financial position that you aren’t sure how to manage, there are a couple of places to seek help. Ff you’re considering selling your home, talk with a team of agents experienced with helping sellers in distress. Atlas Home Group has over a decade of experience in this area. Please call us at 443- 660-8080 or visit our website to submit a consultation form on our website.

You can also call the Maryland HOPE hotline at 1-877-462-7555 to find a state-approved nonprofit agency that can provide individual guidance for homeowners facing foreclosure.

military relocation and short sales

Short Sale Due to Military Relocation or Deployment

Posted by Atlas Home Group on

Short sales are never easy, given the overall complexity of the transaction.  So when a member of US Armed Forces is suddenly deployed or receives Permanent Change of Station (PCS) orders, the complexity and the urgency increases.

When this happens, the short sale listing agent and short sale loss mitigation company must not only understand the ins and outs of the short sale process; they also have to understand the potential emotional and personal complications that stem from this type of short sale.

On one hand, the potential short sale seller has a duty to follow the orders of his/her commanding officers and on the other hand, there is an obligation to repay the loan to the mortgage company.  When a property is worth less than the outstanding loan balance – about one in 6 homeowners (guess) around the country are under water – and traditional sale is not possible, these duties and obligations collide and serve as an element of additional stress for our service men and women.

At Atlas Home Group and Atlas Loss Mitigation, we understand what our military clients are going through.  After helping hundreds of sellers escape foreclosure, we know what it takes to prepare our clients for the best possible outcome given the circumstances.  Whether it’s advice on the timing, deciphering the intricacies of the personalized short sale roadmap, or connections with local professionals regarding taxes, credit, or legal, our team is always protecting the best interests of our clients.  After all, our military clients are protecting our freedom!

When you combine the above factors, with our in-depth knowledge of the short sale process, it is clear why more military short sale sellers trust our short sale team than any other in Maryland.  We are intimately familiar with lenders’ and investors’ guidelines as they relate to military personnel and PCS orders.  We know how to prepare the short sale package to minimize the short sale timeline; we know what buttons to push with lenders and their short sale negotiators; and we know how to keep the buyers and their agents in the transaction when difficulties arise.

We know that when deployment or PCS orders are given, our military clients do not have time to worry about the details of a short sale.  

Our expert short sale knowledge and understanding of lender guidelines as they pertain to military personnel puts us in a leading position to support those who protect us!

If you are a member of the armed forces and are facing a financial hardship related to your home, contact us today – we can help!

 

divorce and short sale

Divorce and Short Sales

Posted by Atlas Home Group on

Our clients undergoing the difficult process of a divorce understand, that a successful short sale will help alleviate a major financial pain point – so they can focus on healing their emotional pain, and on creating a new beginning.

As short sale experts, we are accustomed to working with clients whose both personal and financial situation is in distress.

Although no two short sales are the same given the difference in servicers, investors, mortgage insurance companies, types of properties, etc – we are able to help our clients navigate the turbulent waters of the short sale process with confidence.  This is especially needed in situations where divorce is the primary factor for seeking short sale services.

What we’ve discovered in working with hundreds of homeowners going through separation or divorce is that this particular hardship adds an emotional element that must be acknowledged and dealt with as a part of the short sale.  

We understand the emotional and financial nature of a marriage break up.

On one hand, there could be negative feelings between the homeowners that prevent clear and timely communication.  On the other hand, there are financial and often parental considerations that must be worked through as the household unwinds.  

Needless to say, such circumstances present a new set of challenges that must be overcome, or at least mitigated, in order for a short sale to be successful.  We also understand that in many cases, short sale of the property is the last thing that holds the divorcing couple together from moving on with their lives.

Our approach is simple: apply empathy and experience to help our clients close this chapter of their lives!

We establish straight lines of communication with all parties involved including divorce attorneys if needed.

We prequalify both sellers for the short sale and explain to each what the process will look like – and it can be different for each.

We answer all the questions based on our experiences dealing with similar situations and we often play a conduit of information between all involved.

Most importantly, we focus on the end result – getting the short sale to settlement while neutralizing the effects of deficiencies – by moving the short sale forward with each communication.

Our divorcing clients understand that a successful short sale will help alleviate a major financial pain point of a marriage breaking up, so they can focus more on healing their emotional pains to create a new beginning.

If you are facing the hardship of a divorce and need to find out whether a short sale is right for you, contact us today – our team of short sale experts can help.