Can't Afford Your Mortgage Anymore? Your Options as a Maryland Homeowner

If you can no longer afford your mortgage payments in Maryland, you have several options, even if you're already behind. Depending on your circumstances, you may qualify for mortgage assistance, a repayment plan, loan modification, or temporary payment relief. If keeping the house isn't financially realistic, selling it or pursuing a short sale may be possible.

The important thing is to explore those options before the situation becomes more difficult.

What Should You Do If You Can't Make Your Mortgage Payment?

Start by contacting your mortgage servicer. Explain what's changed financially and ask what assistance programs may be available.

Depending on your loan and circumstances, those options could include:

• Forbearance: Temporarily reducing or pausing payments under an approved arrangement. Missed amounts generally still need to be repaid.

• Repayment plan: Spreading overdue payments across an agreed period while continuing regular mortgage payments.

• Loan modification: Changing certain loan terms to make payments more manageable, if approved.

• Housing counseling: Working with a HUD-approved housing counselor to understand your options and communicate with your servicer.

You don't necessarily have to wait until you've missed several payments to ask for help.

If your financial hardship is temporary, keeping the home may be realistic. But if your income has permanently changed or the payment is no longer sustainable, it's worth considering whether selling would put you in a better financial position.

Can You Sell Your Maryland Home If You're Behind on Payments?

Yes. Being behind on your mortgage doesn't automatically prevent you from selling your house.

If your home is worth more than the mortgage payoff and selling expenses, a traditional sale may allow you to pay off the loan, address outstanding amounts, and potentially walk away with equity.

If you owe more than the property is worth, a short sale may be an alternative. A short sale requires the mortgage lender's approval to accept less than the amount owed.

However, lender approval isn't guaranteed, and listing the property doesn't automatically stop foreclosure proceedings.

Before deciding, I recommend comparing your home's realistic market value with the current mortgage payoff, estimated selling costs, and any other liens against the property.

That gives you a clearer picture of what's financially possible.

What If Foreclosure Has Already Started?

Don't assume it's too late to explore your options.

Federal mortgage servicing rules generally restrict the first foreclosure filing until a borrower is more than 120 days delinquent, subject to exceptions. Maryland also has specific notice and foreclosure procedures.

If you've received a Notice of Intent to Foreclose or court paperwork, pay close attention to the deadlines.

A homeowner may still be able to pursue mortgage assistance or sell before a foreclosure sale, but the available time and options depend on the circumstances.

An experienced Maryland foreclosure attorney or housing counselor can help you understand the legal and mortgage-related issues.

Helpful Maryland Mortgage Assistance Resources

The Maryland Department of Housing and Community Development provides foreclosure prevention information and access to housing counseling resources.

The Consumer Financial Protection Bureau explains mortgage assistance options, borrower protections, and steps to take when you're struggling with payments.

These are good places to start if you're trying to keep your home.

How I Help Maryland Homeowners Facing Financial Hardship

I'm Dan McDevitt with Cummings & Company Realtors and RealVolution Homes Group. Since 2004, I've helped Maryland homeowners navigate difficult real estate situations, including short sales, pre-foreclosure properties, and homes where the mortgage balance exceeds the property's market value.

My role is to help you understand the real estate side of your options. That starts with determining what your home could realistically sell for, reviewing potential selling costs, and explaining whether a traditional sale or lender-approved short sale might make sense.

If you're struggling with mortgage payments and considering selling, visit my Maryland Divorce & Financial Hardship Home Sales page to learn more about your options.

Is Baltimore Becoming a Buyer's Market? What the October 2026 Housing Numbers Reveal

Is the Baltimore housing market finally shifting in favor of buyers? The latest October 2026 statistics from Bright MLS suggest buyers are gaining negotiating power, but that doesn't necessarily mean we're experiencing a full-fledged buyer's market.

More homes are available, fewer buyers are making offers, and properties are taking longer to sell. Yet home prices are holding relatively steady.

Here's what Maryland homeowners, buyers, and sellers should know.

Baltimore Housing Market: October 2026

According to the latest Bright MLS Baltimore Metro Housing Market Report, here's how October 2026 compared with October 2025:

Source: Bright MLS, October 2026 Baltimore Metro Housing Market Report.

These numbers reveal an important shift. Buyers have more choices, but fewer are committing to purchases.

Interestingly, new listings actually declined approximately 4% compared with last October. That suggests inventory is growing partly because homes are remaining on the market longer, rather than simply because more homeowners are listing their properties.

Are Baltimore Home Prices Starting to Fall?

Not significantly across the entire metro area, according to October's median sale price.

Despite increasing inventory and slowing buyer activity, the median sold price remained at $405,000, unchanged from a year earlier.

That doesn't mean every neighborhood or property type is holding its value equally. Real estate conditions can vary considerably between Baltimore City, Baltimore County, Harford County, Howard County, and surrounding communities.

It also doesn't mean individual sellers aren't reducing prices.

A slower housing market doesn't automatically mean a housing crash.

What Does This Mean for Maryland Home Sellers?

Sellers need to recognize that buyers are becoming more selective.

A few years ago, aggressively priced homes could sometimes attract multiple offers almost immediately. Today, buyers are paying closer attention to condition, location, comparable sales, and overall value.

Overpricing a property can result in fewer showings, longer marketing times, and eventual price reductions.

The best strategy is to price competitively from the beginning, prepare the property appropriately, and market it effectively.

What Does This Mean for Homebuyers?

For buyers, increasing inventory creates opportunities that weren't as common during the peak seller's market.

Depending on the property and local competition, buyers may have greater flexibility to negotiate:

• Purchase price

• Inspection repairs

• Seller closing-cost assistance

• Settlement dates and contract terms

However, desirable homes that are priced correctly can still attract strong interest.

Dan's Take: Is Baltimore Really Becoming a Buyer's Market?

I've been selling real estate in Maryland since 2004, and I've experienced several significant market shifts.

What I'm seeing today is a market where pricing, presentation, and realistic expectations matter more than they have in years.

Buyers are becoming more cautious, and sellers can't always rely on the aggressive pricing strategies that worked during the pandemic-era housing boom.

But I wouldn't characterize the entire Baltimore metropolitan area as a buyer's market just yet.

A property in Perry Hall may experience very different conditions from one in Towson, Bel Air, Columbia, or Baltimore City. Price range, condition, and available competition all play important roles.

My bottom line: Buyers are gaining negotiating power, but sellers who understand their local market can still achieve successful results.

If you're considering buying or selling, don't make your decision based entirely on national housing headlines. Look at what's actually happening in your neighborhood.

Wondering What Your Home Is Worth in Today's Market?

Whether you're considering selling soon or simply want to understand how the changing market affects your property, I'm happy to help.

At RealVolution Homes Group, we provide personalized market analyses based on recent comparable sales, current competition, and buyer activity in your area.

Visit RealVolutionHomes.com to explore your options or request a home valuation.

Data source: Bright MLS, October 2026 Baltimore Metro Housing Market Report. Regional statistics reflect the Baltimore metropolitan area, not individual neighborhoods.

About Dan McDevitt

Dan McDevitt is a Baltimore-area Realtor with Cummings & Company Realtors and President of RealVolution Homes Group, licensed in Maryland and Delaware. With more than 20 years of real estate experience, Dan specializes in helping homeowners and families navigate complicated real estate situations brought on by major life events.

His experience includes probate and estate property sales, selling inherited homes, selling a parent's home using a power of attorney (POA), divorce-related property sales, foreclosure and pre-foreclosure situations, short sales, reverse mortgage properties, bankruptcy-related sales, and as-is home sales.

Dan serves Baltimore City, Baltimore County, Harford County, Anne Arundel County, Howard County, and Cecil County, while assisting clients throughout Maryland and Delaware.

Can You Sell Your House in Maryland If Your Spouse Doesn't Agree?

If your spouse refuses to sell your Maryland home, whether you can move forward depends on who legally owns the property and whether you're going through a divorce. If both spouses own the home, one generally cannot sell the entire property without the other's cooperation or appropriate court authority. Even if only one spouse is on the deed, additional legal considerations may apply.

The first step is understanding how the property is titled and what options are available.

What If Both Spouses Are on the Deed?

When both spouses own a home, both generally need to participate in transferring the property to a buyer.

Many married couples in Maryland own their homes as tenants by the entirety, a form of ownership available to married spouses. Under this arrangement, one spouse generally cannot sell the entire property without the other's agreement.

This means you usually can't simply hire a Realtor, accept an offer, and complete the sale if your spouse refuses to cooperate.

If you're separating or divorcing, the situation may need to be addressed through negotiations, a written agreement, or the court.

What If Only One Spouse Owns the House?

This is where things can become more complicated.

Having only one name on the deed doesn't necessarily mean the other spouse has no interest in what happens to the property.

Maryland courts can consider a home acquired during marriage to be marital property for purposes of divorce, even if it's titled in only one spouse's name.

However, marital property classification and legal ownership aren't the same thing. Whether the titled owner can sell depends on the circumstances, including any court orders, pending divorce proceedings, and other applicable legal restrictions.

Before attempting to sell a home during a marital dispute, it's important to have a Maryland family law attorney review the situation.

Can a Maryland Divorce Court Order the House Sold?

Yes, under certain circumstances.

Maryland law allows courts to address ownership and disposition of certain real property as part of divorce proceedings.

Depending on the facts, a court may order the sale of jointly owned property and determine how the proceeds should be distributed.

But that doesn't mean a spouse can automatically force an immediate sale simply because they want to move.

A negotiated agreement may provide more flexibility, including allowing one spouse to buy out the other, refinancing when feasible, or agreeing on a timeline for listing the property.

From a real estate standpoint, knowing the home's realistic market value can make those conversations more productive.

What If Neither Spouse Can Afford to Keep the House?

Sometimes the disagreement isn't really about wanting to sell. It's about what happens next.

One spouse may want to remain in the home but be unable to afford the mortgage, taxes, insurance, and maintenance independently.

If payments are falling behind, waiting too long can create additional financial pressure.

Understanding the property's market value, mortgage payoff, and potential net proceeds can help both parties evaluate their options.

If the mortgage balance exceeds the home's value, a lender-approved short sale may need to be considered.

Helpful Maryland Resources

The Maryland People's Law Library explains how marital and non-marital property are treated in Maryland divorce cases.

Maryland's Family Law §8-202 addresses how courts determine ownership interests in property during divorce proceedings.

For advice about your legal rights or whether a sale can be compelled, consult a Maryland family law attorney.

How I Help Maryland Homeowners Navigate These Situations

I'm Dan McDevitt with Cummings & Company Realtors and RealVolution Homes Group. Since 2004, I've helped Maryland homeowners navigate complicated real estate transactions, including divorce-related sales, financial hardship, and properties with mortgage complications.

My role isn't to decide who is legally entitled to the house. It's to provide an objective market analysis, explain potential selling strategies, and help coordinate the real estate transaction once the parties have the necessary agreement or legal authority.

If you're dealing with a disagreement about selling your home, visit my Maryland Divorce & Financial Hardship Home Sales page to learn more about the real estate options available.

About Dan McDevitt

Dan McDevitt is a Baltimore-area Realtor with Cummings & Company Realtors and President of RealVolution Homes Group, licensed in Maryland and Delaware. With more than 20 years of real estate experience, Dan specializes in helping homeowners and families navigate complicated real estate situations brought on by major life events.

His experience includes probate and estate property sales, selling inherited homes, selling a parent's home using a power of attorney (POA), divorce-related property sales, foreclosure and pre-foreclosure situations, short sales, reverse mortgage properties, bankruptcy-related sales, and as-is home sales.

Dan serves Baltimore City, Baltimore County, Harford County, Anne Arundel County, Howard County, and Cecil County, while assisting clients throughout Maryland and Delaware.

Disclaimer: This article is for general educational purposes and does not constitute legal, financial, tax, lending, or mortgage servicing advice. Reverse mortgage requirements vary by loan type and individual circumstances. Consult your loan servicer, a HUD-approved housing counselor, and a qualified Maryland attorney for guidance about your specific situation.

Just Listed: 2805 Fridinger Mill Road, Manchester, MD — $250,000 Fixer-Upper

Looking for a fixer-upper, investment property, or affordable detached home in Carroll County, Maryland? A new opportunity has hit the market at 2805 Fridinger Mill Road, Manchester, MD 21102. Offered at $250,000, this 3-bedroom, 2-full-bath rancher is an estate-owned reverse mortgage short sale with renovation potential.

Whether you're an investor looking for your next project or a homebuyer willing to put in some work, this property may be worth exploring.

VIEW ALL PROPERTY PHOTOS & DETAILS — $250,000 MANCHESTER RANCHER

A Manchester Rancher With Plenty of Possibilities

Located in the established Whispering Valley community, this detached rancher offers approximately 1,120 square feet of above-grade living space, plus a partially finished basement with additional living space and a second full bathroom.

Property highlights include:

• 3 bedrooms and 2 full bathrooms

• Convenient ranch-style living

• Partially finished basement

• Approximately quarter-acre lot

• Rear deck and backyard

• Off-street parking

• Public water and sewer

The asking price is $250,000.

The property requires significant repairs, updating, and cleanout. It's being sold strictly AS-IS, with no repairs being made by the estate. Utilities are currently disconnected.

For investors, this may be an opportunity to renovate and resell or explore the property's potential as a rental. For homebuyers willing to take on a renovation project, it offers the chance to purchase a detached home and make it their own.

Buyers should carefully evaluate the property's condition, repair expenses, and financing options before submitting an offer.

Why Is This Property a Reverse Mortgage Short Sale?

This is where the situation becomes different from a traditional real estate transaction.

The property is being sold as part of an estate following the homeowner's passing. The home has an FHA-insured reverse mortgage, and the outstanding mortgage balance exceeds the property's estimated current market value.

When a homeowner with a reverse mortgage passes away, the loan generally becomes due, subject to certain protections for eligible surviving spouses. If the home's value is less than the mortgage balance, the estate may be able to sell it through a short sale.

For qualifying FHA-insured reverse mortgages, the mortgage servicer may approve a sale for less than the outstanding loan balance under applicable HUD guidelines.

Importantly, the $250,000 asking price has not been approved by the mortgage servicer. Any contract and final sales terms are subject to third-party approval.

If you've inherited a home with a reverse mortgage, our Reverse Mortgage Help in Maryland resource explains the options available to heirs, executors, and families.

You can also learn more through the Consumer Financial Protection Bureau's guidance on reverse mortgages and heirs.

Can Investors and Traditional Homebuyers Purchase a Short Sale?

Absolutely. Short sales aren't exclusively for cash investors.

Buyers planning to occupy the property may also be able to purchase a short sale, provided they understand the home's condition, have suitable financing, and can accommodate the lender approval process.

For this property, cash offers, conventional financing subject to property-condition requirements, and potentially FHA 203(k) renovation financing will be considered. Traditional FHA and VA financing are not being considered due to the home's current condition.

Buyers should also understand that short sales can take longer than traditional transactions because the mortgage servicer must review and approve the sale.

Capital Short Sale Group is coordinating negotiations. Additional buyer documentation and a buyer-paid short sale negotiation fee apply; details are available in the Bright MLS documents.

For more information about how these transactions work, visit our Maryland Short Sale Solutions resource.

Interested in 2805 Fridinger Mill Road?

If you've been searching for a Manchester, Maryland fixer-upper, an investment property in Carroll County, or a detached home with renovation potential, this property deserves a closer look.

2805 Fridinger Mill Road, Manchester, MD 21102

$250,000 | 3 Bedrooms | 2 Full Bathrooms | Estate Sale | AS-IS

VIEW ALL PHOTOS, PROPERTY DETAILS & SHOWING INFORMATION

For questions about the property or to schedule a showing, contact:

About Dan McDevitt

Dan McDevitt is a Baltimore-area Realtor with Cummings & Company Realtors and President of RealVolution Homes Group, licensed in Maryland and Delaware. With more than 20 years of real estate experience, Dan specializes in helping homeowners and families navigate complicated real estate situations brought on by major life events.

His experience includes probate and estate property sales, selling inherited homes, selling a parent's home using a power of attorney (POA), divorce-related property sales, foreclosure and pre-foreclosure situations, short sales, reverse mortgage properties, bankruptcy-related sales, and as-is home sales.

Dan serves Baltimore City, Baltimore County, Harford County, Anne Arundel County, Howard County, and Cecil County, while assisting clients throughout Maryland and Delaware.

Educational information only. This article is not legal, tax, financial, lending, or mortgage servicing advice. FHA HECM rules differ from those for proprietary reverse mortgages, and eligibility, deadlines, and payoff requirements must be confirmed with the servicer and appropriate professionals.

Disclaimer: This article is for general educational purposes and does not constitute legal, financial, tax, lending, or mortgage servicing advice. Reverse mortgage requirements vary by loan type and individual circumstances. Consult your loan servicer, a HUD-approved housing counselor, and a qualified Maryland attorney for guidance about your specific situation.

Selling Your House As-Is vs. Making Repairs in Maryland: Which Makes More Financial Sense?

Selling your Maryland home as-is can make more financial sense than making repairs, but not always. The right decision depends on how much the improvements cost, how much additional value buyers will actually pay for them, and how long the work takes. Sometimes a few inexpensive improvements produce a better return than a major renovation.

The goal isn't necessarily to get the highest selling price. It's to walk away with the most money after expenses.

When Does Selling a House As-Is Make More Sense?

Selling as-is means offering the property in its current condition, without committing to make repairs. It doesn't eliminate Maryland disclosure requirements or prevent a buyer from requesting inspections.

An as-is sale may make sense when a home needs extensive renovations, the owner doesn't have money for repairs, or an executor is handling an inherited property.

It's also worth considering when the house has outdated kitchens and bathrooms but remains functional.

I've seen homeowners assume they need to renovate everything before listing. That's not necessarily true.

Buyers may be willing to purchase a home that needs updating, particularly when it's priced appropriately for its condition.

The important question is whether the discount buyers expect will be greater or less than what you'd spend preparing the property.

Which Repairs Are Actually Worth Making?

Not all improvements deliver the same return.

Cleaning, decluttering, landscaping, minor painting, and correcting obvious maintenance issues can improve how buyers perceive a property without requiring a major investment.

Replacing an entire kitchen or bathroom is a different decision. Those projects can be expensive, and there's no guarantee buyers will pay enough extra to justify the cost.

Here's a simple hypothetical example:

In this example, repairs appear to generate an additional $15,000 before accounting for holding costs, financing, and any differences in selling expenses.

But what if those repairs cost $35,000 instead of $20,000? Suddenly, the financial advantage disappears.

That's why I recommend comparing actual local sales before spending money on improvements.

Don't Forget the Cost of Waiting

Repair costs aren't the only consideration.

Every additional month you own a property may mean another mortgage payment, property taxes, insurance, utilities, and maintenance.

For families managing an estate, those expenses can add up while the house sits vacant.

There's also the risk of unexpected problems once renovations begin.

A property that needs major work might be better suited for an as-is sale, while a structurally sound home needing only cosmetic improvements could benefit from some preparation.

The right strategy depends on the specific house and the local market—not a blanket rule.

Helpful Maryland Resources

The Maryland Real Estate Commission provides information about Maryland real estate regulations and consumer protections.

Maryland law also addresses residential property disclosure and disclaimer requirements. You can review Maryland Real Property §10-702 for the legal framework and applicable exceptions.

An as-is sale doesn't automatically remove a seller's legal responsibilities.

How I Help Maryland Homeowners Decide

I'm Dan McDevitt with Cummings & Company Realtors and RealVolution Homes Group. Since 2004, I've helped Maryland homeowners, executors, and families evaluate properties in all kinds of conditions.

Before recommending repairs, I look at comparable sales, the home's current condition, what renovated properties are actually selling for, and whether the potential return justifies the investment.

Sometimes my recommendation is to make a few improvements. Other times, it's to sell the property exactly as it sits.

If you're considering selling a home that needs work, visit my Maryland As-Is Home Sales page to learn more about your options.

About Dan McDevitt

Dan McDevitt is a Baltimore-area Realtor with Cummings & Company Realtors and President of RealVolution Homes Group, licensed in Maryland and Delaware. With more than 20 years of real estate experience, Dan specializes in helping homeowners and families navigate complicated real estate situations brought on by major life events.

His experience includes probate and estate property sales, selling inherited homes, selling a parent's home using a power of attorney (POA), divorce-related property sales, foreclosure and pre-foreclosure situations, short sales, reverse mortgage properties, bankruptcy-related sales, and as-is home sales.

Dan serves Baltimore City, Baltimore County, Harford County, Anne Arundel County, Howard County, and Cecil County, while assisting clients throughout Maryland and Delaware.

Educational information only. This article is not legal, tax, financial, lending, or mortgage servicing advice. FHA HECM rules differ from those for proprietary reverse mortgages, and eligibility, deadlines, and payoff requirements must be confirmed with the servicer and appropriate professionals.

Disclaimer: This article is for general educational purposes and does not constitute legal, financial, tax, lending, or mortgage servicing advice. Reverse mortgage requirements vary by loan type and individual circumstances. Consult your loan servicer, a HUD-approved housing counselor, and a qualified Maryland attorney for guidance about your specific situation.

How Many Mortgage Payments Can You Miss Before Foreclosure in Maryland?

In Maryland, foreclosure doesn't automatically begin after one or two missed mortgage payments. Generally, a mortgage servicer cannot make the first foreclosure filing until you're more than 120 days delinquent, with certain exceptions. That's roughly four months behind, but it's not a guarantee of four missed payments before action can begin. Maryland also has its own foreclosure notice requirements.

If you're behind on your mortgage, understanding the timeline can help you make decisions before the situation becomes more serious.

What Happens After You Miss a Mortgage Payment?

Missing a mortgage payment doesn't mean the bank immediately takes your house. However, the consequences can start well before foreclosure proceedings.

Here's a general breakdown:

• 30 days late: Your servicer may report the missed payment to credit bureaus, and late fees may apply under your loan terms.

• 60 days late: Collection efforts may increase, and the servicer should be communicating available assistance options.

• 90 days late: You're seriously delinquent. Your lender may be preparing for possible foreclosure, although federal and Maryland requirements still apply.

• More than 120 days delinquent: In most cases, federal mortgage servicing rules allow the first foreclosure filing once this threshold has passed.

These are general milestones, not guaranteed deadlines. Your loan type, payment history, and applicable protections can affect the process.

How Does Foreclosure Work in Maryland?

Maryland generally requires a lender to send a Notice of Intent to Foreclose at least 45 days before filing a foreclosure action. For many residential mortgages, the filing also cannot occur until the loan is at least 120 days in default.

These requirements can overlap, so you shouldn't assume the 45-day notice gets added to the 120-day period.

Once a foreclosure case is filed, additional notices and court procedures apply before a foreclosure sale can take place.

The important distinction is that becoming eligible for foreclosure is not the same as losing your home.

If you've received a Notice of Intent to Foreclose, don't ignore it. The earlier you address the situation, the more options you may have.

Can You Sell Your Maryland Home Before Foreclosure?

Yes. In many situations, homeowners can sell their property before a foreclosure sale, even if they're several months behind on payments.

If your home is worth more than you owe, a traditional sale may allow you to pay off the mortgage and associated costs.

If you owe more than the property is worth, a short sale may be an option. This involves seeking the mortgage lender's approval to accept less than the outstanding mortgage balance.

A short sale isn't automatic, and listing your home doesn't stop foreclosure proceedings by itself. Timing, lender approval, and the property's market value all matter.

That's why understanding what your house could realistically sell for is an important part of evaluating your options.

Helpful Maryland Foreclosure Resources

The Maryland Department of Housing and Community Development provides information about foreclosure prevention and housing counseling resources.

The Consumer Financial Protection Bureau explains mortgage assistance options and federal foreclosure protections.

Both are useful starting points if you're struggling to make mortgage payments.

How I Help Maryland Homeowners Facing Foreclosure

I'm Dan McDevitt with Cummings & Company Realtors and RealVolution Homes Group. I've been helping Maryland homeowners navigate complicated real estate situations since 2004, including short sales, pre-foreclosure properties, and homes where the mortgage balance exceeds the market value.

My role is to evaluate your property's value, explain your potential selling options, and help coordinate the real estate side of a traditional sale or lender-approved short sale.

If you're behind on mortgage payments and concerned about foreclosure, you can learn more about how I help homeowners explore selling options on my Maryland Short Sale Solutions page.

About Dan McDevitt

Dan McDevitt is a Baltimore-area Realtor with Cummings & Company Realtors and President of RealVolution Homes Group, licensed in Maryland and Delaware. With more than 20 years of real estate experience, Dan specializes in helping homeowners and families navigate complicated real estate situations brought on by major life events.

His experience includes probate and estate property sales, selling inherited homes, selling a parent's home using a power of attorney (POA), divorce-related property sales, foreclosure and pre-foreclosure situations, short sales, reverse mortgage properties, bankruptcy-related sales, and as-is home sales.

Dan serves Baltimore City, Baltimore County, Harford County, Anne Arundel County, Howard County, and Cecil County, while assisting clients throughout Maryland and Delaware.

Educational information only. This article is not legal, tax, financial, lending, or mortgage servicing advice. FHA HECM rules differ from those for proprietary reverse mortgages, and eligibility, deadlines, and payoff requirements must be confirmed with the servicer and appropriate professionals.

Disclaimer: This article is for general educational purposes and does not constitute legal, financial, tax, lending, or mortgage servicing advice. Reverse mortgage requirements vary by loan type and individual circumstances. Consult your loan servicer, a HUD-approved housing counselor, and a qualified Maryland attorney for guidance about your specific situation.

What Happens If Your HOA or Condo Association Places a Lien on Your Maryland Property?

If your HOA or condominium association places a lien on your Maryland property, it means the association is asserting a legal claim against the property for an unpaid obligation. That lien can complicate refinancing or selling your home, increase the amount you owe, and potentially lead to foreclosure if the issue isn't resolved.

The good news is that an association lien doesn't automatically mean you're losing your house. Understanding what you owe, whether the lien is valid, and what options you have is the first step.

Why Would an HOA or Condo Association Place a Lien?

In Maryland, homeowners associations and condominium associations can have lien rights for unpaid assessments and certain other charges, subject to state law and the association's governing documents.

Common situations include falling behind on monthly HOA or condo fees, unpaid special assessments, or disputes involving charges added to an owner's account.

What starts as a relatively manageable balance can become more complicated when interest, collection expenses, or legally permitted fees are added.

Maryland's Contract Lien Act establishes procedures for many association liens, including notice requirements and opportunities to dispute a proposed lien. Not every charge is automatically enforceable, and certain fines and fees are subject to additional restrictions.

If you've received a notice, don't assume every amount listed is correct. Request an itemized statement and review the deadlines carefully.

Can an HOA or Condo Association Foreclose on Your Home?

Potentially, yes. Maryland law allows foreclosure of certain enforceable association liens, but there are important limitations.

For example, Maryland generally prohibits foreclosure of a lien consisting only of fines or attorney's fees related to those fines. Additional protections and procedural requirements may apply depending on the type of association and the debt involved.

An HOA foreclosure is separate from your mortgage lender's foreclosure rights. Being current on your mortgage doesn't necessarily eliminate an association lien problem.

If you've received a foreclosure notice or legal paperwork, speak with a Maryland real estate attorney promptly. Deadlines matter, and ignoring the notice can reduce your options.

Can You Sell a Maryland House With an HOA or Condo Lien?

Yes, in many situations you can still sell the property.

The lien generally needs to be addressed before or as part of settlement so the buyer can receive the title required under the contract.

Depending on the circumstances, an outstanding balance may be paid from the seller's proceeds at closing. Your title company can obtain payoff information and determine what must be resolved.

If there isn't enough equity to cover the mortgage, association lien, and other selling expenses, the situation becomes more complicated. Negotiating a resolution or exploring a short sale may be necessary, depending on the debts and approvals involved.

This is why I recommend evaluating the property's market value and estimated net proceeds before deciding how to proceed.

Helpful Maryland Resources

The Maryland Contract Lien Act provides the legal framework for establishing certain liens against property.

The Maryland Homeowners Association Act is another useful starting point for understanding HOA-related rights and responsibilities.

For questions about whether a particular lien is enforceable, consult a Maryland attorney.

How I Help Maryland Homeowners Facing HOA or Condo Problems

I'm Dan McDevitt with Cummings & Company Realtors and RealVolution Homes Group. Since 2004, I've helped homeowners navigate complicated property sales involving financial difficulties, liens, short sales, estates, and other challenging circumstances.

When an HOA or condo lien is involved, my role is to evaluate the property's market value, explain potential selling options, coordinate with the title company, and help determine whether a traditional sale, as-is sale, or another strategy makes sense.

If you're dealing with unpaid assessments, an association lien, or concerns about selling your property, visit my Maryland HOA & Condo Association Problems page to learn more about your options.

About Dan McDevitt

Dan McDevitt is a Baltimore-area Realtor with Cummings & Company Realtors and President of RealVolution Homes Group, licensed in Maryland and Delaware. With more than 20 years of real estate experience, Dan specializes in helping homeowners and families navigate complicated real estate situations brought on by major life events.

His experience includes probate and estate property sales, selling inherited homes, selling a parent's home using a power of attorney (POA), divorce-related property sales, foreclosure and pre-foreclosure situations, short sales, reverse mortgage properties, bankruptcy-related sales, and as-is home sales.

Dan serves Baltimore City, Baltimore County, Harford County, Anne Arundel County, Howard County, and Cecil County, while assisting clients throughout Maryland and Delaware.

Educational information only. This article is not legal, tax, financial, lending, or mortgage servicing advice. FHA HECM rules differ from those for proprietary reverse mortgages, and eligibility, deadlines, and payoff requirements must be confirmed with the servicer and appropriate professionals.

Disclaimer: This article is for general educational purposes and does not constitute legal, financial, tax, lending, or mortgage servicing advice. Reverse mortgage requirements vary by loan type and individual circumstances. Consult your loan servicer, a HUD-approved housing counselor, and a qualified Maryland attorney for guidance about your specific situation.

Can I Sell an Estate Property in Maryland If I Live Out of State?

Yes. You can sell an estate property in Maryland even if you live in another state, and you may be able to handle most of the process without traveling to Maryland. The important considerations are having the proper legal authority to sell, understanding the property's condition and market value, and working with local professionals who can coordinate the sale.

If you've inherited a house in Baltimore or have been named executor of a Maryland estate while living somewhere else, here's what you should know.

Can an Out-of-State Executor Sell a House in Maryland?

Yes. Maryland allows someone who lives in another state to serve as the personal representative (often called the executor) of an estate.

However, an out-of-state personal representative generally must appoint a Maryland resident agent. The Maryland Register of Wills provides a specific form for this requirement.

Before selling, you'll also need to establish who has legal authority over the property. That may involve Letters of Administration, reviewing how the property is titled, and confirming whether additional probate requirements apply.

Being an heir doesn't automatically mean you have authority to sign a contract or sell the house.

If the deceased homeowner lived in another state but owned property in Maryland, additional procedures involving a foreign personal representative or ancillary probate may be necessary.

Do I Have to Travel to Maryland to Sell the House?

Not necessarily. And this is where having the right local real estate agent can make a tremendous difference.

Imagine living in Tennessee or Florida while trying to sell your parent's home in Baltimore County. The house may need cleaning, repairs, photographs, inspections, and someone to coordinate access for contractors and potential buyers.

Those responsibilities can become overwhelming when you're several hundred miles away.

An experienced local Realtor can help coordinate many of those tasks, including evaluating the property, recommending contractors, arranging photography, managing showings, and keeping you informed throughout the transaction.

Contracts and many other documents can often be handled electronically. Depending on the title company's requirements, certain closing documents may still need original signatures, notarization, or other arrangements.

You may not need to make repeated trips to Maryland just to get the property sold.

Should You Make Repairs or Sell the Estate Property As-Is?

This is one of the first questions I would evaluate.

Sometimes spending a few thousand dollars on cleaning, painting, or minor improvements can make a meaningful difference in the property's marketability.

Other times, particularly when a house needs substantial work, selling as-is may make more financial sense.

The right answer depends on the property's condition, comparable sales, local competition, carrying costs, and the family's priorities.

I believe in reviewing those options before asking an out-of-state executor to spend money unnecessarily.

Helpful Maryland Estate Resources

The Maryland Register of Wills explains how an out-of-state resident can serve as personal representative and the resident-agent requirement.

If the deceased homeowner lived outside Maryland but owned real estate here, the Register's Foreign Personal Representative and Ancillary Probate guide explains additional procedures that may apply.

An estate attorney can help determine the appropriate legal process for your situation.

How I Help Out-of-State Families Sell Maryland Estate Properties

I'm Dan McDevitt with Cummings & Company Realtors and RealVolution Homes Group. I've worked with Maryland homeowners and families since 2004, including executors and heirs navigating estate and inherited property sales.

My role is to make the real estate side of the process as manageable as possible. That means evaluating the property's market value, explaining whether repairs make financial sense, helping coordinate local services, developing a marketing strategy, and communicating with you throughout the sale.

Whether the property is in Baltimore City, Baltimore County, Harford County, Anne Arundel County, or elsewhere in Maryland, the goal is to help you make informed decisions without unnecessary trips or expenses.

If you're responsible for selling an inherited or estate property while living out of state, visit my Maryland Probate & Inherited Home Sales page to learn more about your options. 

About Dan McDevitt

Dan McDevitt is a Baltimore-area Realtor with Cummings & Company Realtors and President of RealVolution Homes Group, licensed in Maryland and Delaware. With more than 20 years of real estate experience, Dan specializes in helping homeowners and families navigate complicated real estate situations brought on by major life events.

His experience includes probate and estate property sales, selling inherited homes, selling a parent's home using a power of attorney (POA), divorce-related property sales, foreclosure and pre-foreclosure situations, short sales, reverse mortgage properties, bankruptcy-related sales, and as-is home sales. Dan serves Baltimore City, Baltimore County, Harford County, Anne Arundel County, Howard County, and Cecil County, while assisting clients throughout Maryland and Delaware.

Educational information only. This article is not legal, tax, financial, lending, or mortgage servicing advice. FHA HECM rules differ from those for proprietary reverse mortgages, and eligibility, deadlines, and payoff requirements must be confirmed with the servicer and appropriate professionals.

Disclaimer: This article is for general educational purposes and does not constitute legal, financial, tax, lending, or mortgage servicing advice. Reverse mortgage requirements vary by loan type and individual circumstances. Consult your loan servicer, a HUD-approved housing counselor, and a qualified Maryland attorney for guidance about your specific situation.

How Long Does a Short Sale Take in Maryland? What Homeowners Should Expect

By Dan McDevitt | RealVolution Homes Group at Cummings & Company Realtors

If you're considering a short sale in Maryland, one of your first questions is probably: How long is this going to take?

It's a fair question, especially if you're already behind on mortgage payments, receiving letters from your lender, or worried about foreclosure.

Here's the answer I generally want homeowners to understand:

A Maryland short sale can take approximately three to six months from preparation through settlement, sometimes longer. That's a planning estimate, not a guaranteed timeline or a published statewide average. Some transactions move faster, while others take considerably longer depending on the lender, the number of mortgages, the property's condition, and how quickly the required paperwork is completed.

I've been helping homeowners navigate short sales since 2007 and have handled more than 150 of these transactions. One thing I've learned is that the biggest delays often have very little to do with finding a buyer.

They have to do with everything that happens afterward.

Let's walk through the process.

First, What Exactly Is a Short Sale?

A short sale occurs when a homeowner sells a property for less than the amount needed to pay off the mortgage debt and other required obligations, with the necessary approval from the mortgage lender or servicer.

For example, imagine you owe $325,000 on your mortgage, but your home can realistically sell for $275,000.

After accounting for closing costs and other obligations, there isn't enough money to pay off the loan in full.

In that situation, a short sale might be an option.

But unlike a traditional home sale, the lender must agree to accept the proposed transaction.

And if there are multiple mortgages, liens, or other claims against the property, additional approvals or resolutions may be required.

A short sale approval also doesn't automatically mean that every remaining debt is forgiven. The written approval terms matter, and homeowners should obtain legal or tax advice when appropriate.

The Five Stages of a Maryland Short Sale

Stage 1: Understanding the Situation and Preparing the Paperwork

Illustrative planning estimate: 1–3 weeks

Before putting the property on the market, we need to understand what we're dealing with.

That typically means reviewing the mortgage situation, determining the property's likely market value, discussing any foreclosure activity, and identifying the lender's documentation requirements.

Depending on the loan and homeowner's circumstances, the lender may request:

• A hardship letter explaining the homeowner's financial situation.

• Recent bank statements and income documentation.

• Tax returns or other financial records.

• A mortgage statement and loan information.

• An authorization allowing the agent or negotiator to communicate with the servicer.

• Additional documents specific to the lender's short sale program.

This stage matters more than people realize.

An incomplete package can lead to repeated requests for information and unnecessary delays.

My advice: Start gathering the paperwork as early as possible. Waiting until an offer arrives can cost valuable time.

Stage 2: Pricing, Marketing, and Finding a Buyer

Illustrative planning estimate: 2–6 weeks, potentially longer

One of the biggest misconceptions about short sales is that the bank simply decides what the home is worth before the property goes on the market.

That's not necessarily how it works.

We still need to analyze comparable sales, evaluate the condition of the property, and establish a realistic marketing strategy.

Then we need to attract a qualified buyer who understands the short sale process.

Pricing matters enormously.

If a property is listed too high, we can lose weeks waiting for an offer that never comes.

If it's priced too low, the lender may reject the offer or require a higher purchase price.

The objective is to attract legitimate buyer interest at a price supported by the market while understanding that the lender has the final say on whether the proposed short sale is acceptable.

Stage 3: Submitting the Offer and Waiting for Lender Review

Illustrative planning estimate: 30–90 days, sometimes longer

This is where many short sales become frustrating.

The seller and buyer may have agreed on a price.

The contract may be signed.

Everyone may be ready to move forward.

But the mortgage servicer still needs to evaluate the transaction.

That review may involve confirming the homeowner's eligibility, examining the financial documentation, reviewing the purchase contract, obtaining a property valuation, and determining whether the proposed net proceeds satisfy the loan's short sale requirements.

The lender may approve the offer, counteroffer, request additional information, or decline the transaction.

And every request for new paperwork can affect the timeline.

Here's an important distinction: Some mortgage programs have specific response requirements.

For example, Fannie Mae's published servicing guidance generally requires a response within 30 calendar days after receipt of a complete borrower response package, when required, and an initial short sale offer.

That response may be an approval, counteroffer, or denial.

It does not mean the entire transaction will close in 30 days.

Other loan investors and programs have different rules.

This is one reason I always tell homeowners not to rely on a blanket promise that their short sale will be approved within a certain number of days.

Stage 4: Negotiations, Additional Liens, and Final Approval

Timeline varies; often overlaps with lender review

Sometimes the lender's initial response isn't an approval.

It might be a counteroffer.

Or the lender may approve the sale price but require changes to the closing costs or settlement terms.

Additional complications can arise when the property has:

• A second mortgage or home equity loan.

• Judgment liens.

• Unpaid HOA or condominium association balances.

• Outstanding taxes or other claims.

• Title issues that must be resolved before settlement.

When multiple parties need to approve how the proceeds will be distributed, the process can become considerably more complicated.

This is where experience with short sale negotiations and coordination with title professionals can make a meaningful difference.

The objective is to identify problems early rather than discover them a few days before settlement.

Stage 5: Closing the Short Sale

Illustrative planning estimate: 30–60 days after approval, depending on the transaction

Once the required approvals are in place, we can work toward settlement.

The title company must confirm that the lender's approval terms can be satisfied and that the property can be transferred with the necessary liens released.

The buyer also needs to complete financing, inspections, appraisal requirements, and any other contractual obligations.

For Fannie Mae short sales, the servicing guide generally requires closing within 60 calendar days after approval unless an extension is authorized.

Other lenders may impose different deadlines.

The important thing to understand is that lender approval isn't the finish line. Settlement is.

What Causes a Maryland Short Sale to Take Longer?

In my experience, the most common problems fall into a handful of categories.

Incomplete financial documentation. A lender requests updated bank statements, missing signatures, or additional hardship information.

Unrealistic pricing. The seller, buyer, or lender has expectations that don't align with the property's market value.

Multiple mortgages or liens. More parties must agree before clear title can be delivered.

Buyer financing problems. A buyer who isn't prepared to wait for lender approval may walk away before the process is completed.

Property condition. Repair issues can complicate buyer financing or negotiations.

Foreclosure activity. Existing legal deadlines can affect whether there's enough time to complete the transaction.

Estate or probate complications. If the owner has passed away, the person signing the documents must have appropriate legal authority to sell the property.

A complicated short sale isn't necessarily an impossible short sale.

But it does require a realistic plan.

Can You Do a Short Sale in Maryland If Foreclosure Has Already Started?

Potentially, yes. But time becomes critical.

This is one of the most important things I want Maryland homeowners to understand.

Simply listing a property for sale does not automatically stop foreclosure proceedings.

And even submitting a short sale package doesn't guarantee that a scheduled foreclosure sale will be postponed.

Maryland has specific foreclosure procedures, notices, and deadlines.

Depending on the stage of the case, homeowners may have opportunities to request mediation or pursue other loss mitigation options.

For eligible homeowners, the foreclosure mediation request generally must be filed within 25 days of the applicable final loss mitigation notice.

That deadline is separate from the short sale process.

If you've received an Order to Docket, foreclosure mediation paperwork, or notice of a scheduled foreclosure sale, don't assume there's plenty of time.

Contact your mortgage servicer promptly, explore Maryland foreclosure resources and consider speaking with a Maryland foreclosure attorney or HUD-approved housing counselor.

A short sale may still be possible, but it needs to be evaluated against the actual foreclosure timeline.

Can You Speed Up a Short Sale?

There isn't a magic trick that forces a lender to approve a transaction overnight.

But there are several things that can help prevent avoidable delays.

Start early. Don't wait until a foreclosure sale is scheduled to begin exploring your options.

Get organized. Provide complete, accurate documentation as quickly as possible.

Price the property strategically. The right asking price should generate interest while remaining supportable through comparable sales and lender valuation.

Work with a qualified buyer. A buyer needs to understand the approval process and have realistic expectations.

Address title issues early. Second mortgages, judgments, association balances, and estate issues should be identified as soon as possible.

Maintain communication. Follow up with the servicer, buyer, title company, and other parties throughout the process.

And perhaps most importantly, work with professionals who understand that a short sale is not handled exactly like a conventional transaction.

Does a Short Sale Have to Take Six Months?

No.

Some short sales can close considerably faster, particularly when the homeowner's documentation is complete, there's one mortgage, the buyer is prepared, and the lender's requirements are straightforward.

Other transactions may take longer than six months because of title problems, multiple lienholders, valuation disputes, or delays in lender approval.

The National Association of REALTORS® has historically cautioned that short sale reviews can take weeks or months, with additional mortgages often adding complexity.

That's why I prefer to discuss realistic ranges instead of making promises about exact closing dates.

The timeline should be based on the actual property, lender, financial circumstances, and foreclosure status—not a generic estimate from the internet.

Frequently Asked Questions About Maryland Short Sale Timelines

How long does a bank take to approve a short sale in Maryland?

It depends on the lender and loan program. A complete package may receive a response in approximately 30 days under certain investor guidelines, but that response may be a counteroffer or denial rather than final approval. Other cases take several months.

Can I sell my house through a short sale if I'm only a few months behind?

Possibly. Eligibility depends on the mortgage program, hardship circumstances, and the servicer's requirements. Some programs allow evaluation before a homeowner becomes seriously delinquent.

Does a short sale stop foreclosure?

Not automatically. Listing the home or submitting an offer does not by itself guarantee a foreclosure postponement. Confirm the status directly with the servicer and seek legal guidance when necessary.

Can a buyer back out while waiting for short sale approval?

The buyer's rights depend on the purchase contract, its contingencies, and applicable law. Short sale contracts should clearly address the approval process and relevant deadlines.

What happens if the lender rejects the offer?

Depending on the circumstances, the parties may be able to renegotiate, submit revised terms, or explore other options. Approval is never guaranteed.

What if I have two mortgages?

Both lienholders may need to agree to the proposed transaction and lien releases. That can add time and complexity.

Do I have to pay the difference after a short sale?

Not necessarily, but you should never assume the remaining debt is automatically forgiven. Review the written approval terms with an appropriate legal or financial professional, including any potential tax consequences.

Can an inherited property go through a short sale?

Yes, in some circumstances. However, the estate or other authorized party must have the legal authority to sell, and the lender must approve the transaction. Probate and title issues can affect timing.

My Advice After Handling More Than 150 Short Sales

If there's one thing I would tell someone considering a short sale in Maryland, it's this:

Don't wait until you're out of time to find out what your options are.

I've been working with short sales since 2007, and I've seen how different every situation can be.

Some homeowners are dealing with job loss or financial hardship.

Others are handling inherited properties with mortgages that exceed their value.

Some have reverse mortgages.

And some simply need to understand whether selling is even possible.

My approach is to look at the entire situation before recommending a course of action.

What is the property realistically worth?

How much is owed?

Is there a foreclosure deadline?

Are there other liens?

Who has authority to sell?

What alternatives are available?

Those questions matter far more than making a promise about how quickly a bank will respond.

If you're dealing with a difficult mortgage situation in Baltimore City, Baltimore County, Harford County, Anne Arundel County, Howard County, Cecil County, or elsewhere in Maryland, I'm happy to help you evaluate the real estate side of your options.

A short sale may not be the right answer for everyone. But understanding the process early can make a significant difference.

About Dan McDevitt

Dan McDevitt is a Baltimore-area Realtor with Cummings & Company Realtors and President of RealVolution Homes Group, licensed in Maryland and Delaware. With more than 20 years of real estate experience, Dan specializes in helping homeowners and families navigate complicated real estate situations brought on by major life events.

His experience includes probate and estate property sales, selling inherited homes, selling a parent's home using a power of attorney (POA), divorce-related property sales, foreclosure and pre-foreclosure situations, short sales, reverse mortgage properties, bankruptcy-related property sales, and selling homes as-is.

Dan helps clients throughout Baltimore City, Baltimore County, Harford County, Anne Arundel County, Howard County, Cecil County, and surrounding Maryland and Delaware communities.

This article provides general educational information and planning estimates, not legal, financial, or tax advice. Short sale requirements and foreclosure timelines depend on the loan program and individual circumstances.

🔥 2027: The Year of the Distressed Property? Why I'm Calling a Major Shift in Real Estate

By Dan McDevitt | October 30, 2026

I'm calling it now: I believe 2027 could be the year that distressed and life-event real estate sales become one of the biggest opportunities in the housing market.

Short sales. Foreclosures. Reverse mortgages. Estate sales. Senior transitions. Divorce-related property sales.

And while a lot of real estate agents are still waiting for the market to return to the way it was a few years ago, I believe something much more important is happening right in front of us.

The balance of power is shifting.

Buyers are becoming more selective. Sellers are having to rethink their expectations. Mortgage distress is increasing. And homeowners facing major life changes don't always have the luxury of waiting another year for the perfect market.

Now, before someone accuses me of predicting another 2008 housing crash, let me be clear.

I'm not predicting a housing crash. I'm predicting a growing divide between homeowners who can afford to wait and homeowners who need to sell.

And there are some pretty compelling economic signals behind that prediction.

1. There Are Far More Sellers Than Buyers in the National Market

Let's start with a number that should get everyone's attention.

According to Redfin's October 14, 2026 report, there were an estimated 62.6% more home sellers than buyers nationwide in September.

Redfin estimated approximately 1.51 million sellers compared with 929,000 buyers.

That was the largest imbalance in its records dating back to 2013.

The report also found that 41 of the 50 largest metropolitan markets qualified as buyer's markets under its methodology.

Think about what that means.

For years, sellers could put their homes on the market, attract multiple offers, waive contingencies, and sometimes sell for significantly more than asking price.

Many homeowners got used to that environment.

But when there are more sellers competing for fewer buyers, something has to give.

And increasingly, that something is the asking price.

Source: Redfin — Home Sellers Outnumber Buyers by 63%

2. Some Sellers Are Still Living in 2021

Here's where I'm going to say something that might upset a few people.

Some homeowners are living in fantasy land when it comes to what their properties are worth.

I understand why.

They watched their neighbors sell homes for incredible prices during the pandemic-era market. They saw properties receive multiple offers within days. They remember hearing about buyers waiving inspections and offering tens of thousands over asking price.

And now they expect the same thing.

But here's the problem.

Your house isn't worth what your neighbor got three years ago. It isn't worth what Zillow says. And it isn't worth what you need to walk away with.

It's worth what a qualified buyer is willing and able to pay in today's market.

According to Realtor.com's September 2026 housing report, 20.8% of active listings had experienced a price reduction.

That's the highest September price-reduction share since 2018.

Now, that doesn't mean every seller is unrealistic. Some are adjusting appropriately to changing conditions.

But it does show that the market is forcing more pricing conversations.

I've watched sellers get frustrated, withdraw listings, switch agents, and relist at nearly the same price.

Sometimes they blame the agent. Sometimes they blame the marketing. Sometimes they blame buyers.

And occasionally, the only thing they haven't seriously reconsidered is the asking price.

You can change Realtors 27 times, but if the price doesn't match the market, the result may not change either.

To be fair, nationwide delistings have not surged in 2026. Realtor.com's September report found that withdrawals remained near last year's levels.

So I'm not saying every frustrated seller is rage-delisting.

I'm saying that sellers who refuse to adjust their expectations may find 2027 increasingly frustrating.

Source: Realtor.com — September 2026 Housing Trends

3. Mortgage Rates Are Still Crushing Affordability

As of October 29, 2026, Freddie Mac reported an average 30-year fixed mortgage rate of 7.24%, compared with 6.17% one year earlier.

That difference matters.

Consider a hypothetical $350,000 mortgage:

• At 6.17%, principal and interest would be approximately $2,137 per month.

• At 7.24%, principal and interest would be approximately $2,387 per month.

That's roughly $250 more every month for the same loan amount, before taxes, insurance, and other housing expenses.

And buyers don't suddenly have another $250 per month available just because a seller thinks their home deserves a premium price.

Higher borrowing costs limit purchasing power.

When purchasing power falls, buyers become more selective.

And when buyers become more selective, overpriced homes face a much tougher audience.

Source: Freddie Mac — Primary Mortgage Market Survey

4. Foreclosure Activity Is Increasing — Including Here in Maryland

Now we're getting into the part of the market that concerns me most.

According to ATTOM, 227,548 U.S. properties had foreclosure filings during the first six months of 2026.

That's a 21% increase compared with the first half of 2025.

In August alone, foreclosure filings were up 13% from a year earlier.

And here's a statistic that hits closer to home.

Maryland had the fifth-highest state foreclosure filing rate in August 2026, with approximately one filing for every 2,530 housing units.

The Baltimore metropolitan area also recorded 167 completed foreclosures that month, according to ATTOM.

Those are real properties and real homeowners facing difficult circumstances.

Now, let's keep these numbers in perspective.

Foreclosure activity remains below historical norms. We're not seeing anything close to the widespread distress associated with the Great Recession.

But the direction is worth watching.

And if more homeowners begin falling behind while affordability remains strained, we could see growing demand for foreclosure-prevention services, traditional equity sales, loan workouts, and short sales.

Sources: ATTOM — First Half 2026 Foreclosure Report and ATTOM — August 2026 Foreclosure Report

5. Mortgage Delinquencies Are Another Warning Sign

The Mortgage Bankers Association reported that the mortgage delinquency rate reached 4.37% in the second quarter of 2026.

That was slightly lower than the previous quarter, but 0.44 percentage points higher than a year earlier.

Even more concerning, seriously delinquent loans had increased for four consecutive quarters.

The percentage of loans in the foreclosure process also increased from the prior year.

Here's why that matters.

Mortgage distress usually doesn't begin with a foreclosure notice.

It begins with one missed payment.

Then another.

Then a homeowner starts juggling expenses, hoping things improve.

Some recover. Some qualify for assistance or loan modifications. Others have equity and can sell conventionally.

But for homeowners who owe more than the property can realistically sell for, a short sale may become an option worth exploring.

After handling more than 150 short sales since 2007, I can tell you that timing matters.

The earlier someone explores their options, the more possibilities they may have.

Source: Mortgage Bankers Association — Second Quarter 2026 Delinquency Survey

6. Maryland Is Different — And That Makes Local Expertise Even More Important

Here's where I want to separate national headlines from what's actually happening in Maryland.

According to Maryland REALTORS®, August 2026 home sales declined 8.5% compared with August 2025.

Pending sales fell 1%.

But unlike much of the national market, Maryland's active inventory was still 13.7% lower than a year earlier.

And the statewide median sales price increased 2.3% to $445,000.

That's not a market where every seller is suddenly desperate.

Maryland still has significant inventory constraints, and desirable, well-priced properties can attract strong buyer interest.

But fewer transactions, higher financing costs, and changes in local buyer demand create challenges that won't affect every homeowner equally.

A beautifully maintained home in a desirable neighborhood is not competing in the same way as a dated estate property, an underwater home, or a property facing a foreclosure deadline.

There isn't one Maryland housing market. There are dozens of local markets and circumstances within it.

That's why broad national predictions need to be applied carefully to Baltimore County, Baltimore City, Harford County, Anne Arundel County, Howard County, Cecil County, and the surrounding areas.

Source: Maryland REALTORS® — Housing Statistics

7. Why I Believe Life-Event Property Sales Could Become a Bigger Opportunity in 2027

Here's the part of my prediction that goes beyond foreclosure statistics.

Not every homeowner selling under pressure is behind on a mortgage.

Some properties must be sold because of life circumstances.

Estate and probate sales: A family inherits a property, and the executor needs to settle the estate.

Reverse mortgage properties: An heir or surviving family member needs to understand the loan balance, repayment requirements, available options, and deadlines.

Senior transitions: An older homeowner needs to downsize or move into assisted living, or a family needs to sell a longtime residence.

Divorce-related sales: A couple needs to divide assets and make difficult financial decisions.

Short sales: A homeowner needs lender approval to sell because the proceeds won't cover the outstanding mortgage obligations and other required costs.

Foreclosure-related sales: A homeowner needs to evaluate available options before the foreclosure process advances further.

As-is sales: A property needs extensive repairs, and the owner doesn't have the money, time, or desire to renovate.

These situations aren't all legally or financially classified as distressed sales.

But they share something important.

The decision to sell is often driven by circumstances beyond ordinary market timing.

A homeowner who simply wants to move into a larger house might decide to wait another year.

An executor settling an estate may not want to keep paying property taxes, insurance, utilities, and maintenance indefinitely.

A homeowner facing foreclosure may have a legal deadline.

A family handling a senior transition may need to make decisions regardless of what mortgage rates are doing.

That's why I believe this segment of the market deserves far more attention in 2027.

8. Real Estate Agents Need to Become Problem-Solvers

I've been licensed in Maryland and Delaware since 2004.

I've worked through short sales, inherited property transactions, estate sales, reverse mortgage situations, and plenty of transactions where the hardest part wasn't finding a buyer.

It was figuring out how to get the property sold in the first place.

Who has legal authority to sign?

Does the estate need court approval?

Is there sufficient equity?

Are there liens or unpaid association fees?

Is the property facing foreclosure?

Does the lender need to approve the transaction?

Can the family sell the property as-is?

These aren't questions answered by putting a sign in the yard and uploading pictures to the MLS.

They require experience, research, communication, negotiation, and coordination with the right professionals.

And I believe agents who develop those skills will be better positioned to help homeowners whose situations don't fit the traditional real estate playbook.

The days of assuming every listing will sell simply because it's listed may be getting further behind us.

9. Buyers: 2027 Could Present Opportunities, But Don't Expect Every Property to Be a Bargain

Now let's talk about the buyers who have been sitting on the sidelines.

I think there could be some interesting opportunities in 2027, especially for buyers willing to consider properties that need work or involve more complicated transactions.

Estate properties.

As-is homes.

Short sales.

Properties being sold because of relocation, financial pressure, or major life changes.

Some motivated sellers may prioritize certainty, timing, or convenience over achieving the absolute highest possible price.

That can create negotiating opportunities.

But let's be clear about something.

A motivated seller does not automatically mean a deeply discounted property.

Some estate properties sell at full market value.

Some short sales involve months of lender negotiations.

Some properties that look inexpensive need tens of thousands of dollars in repairs.

And foreclosure purchases can involve title, condition, financing, or occupancy risks.

The opportunity isn't simply finding someone who needs to sell.

It's identifying a property where the purchase price, condition, financing, and risk make sense.

The buyers who prepare financially, understand the numbers, and work with experienced professionals may be better positioned to recognize those opportunities.

My Prediction for 2027

So here it is.

I believe 2027 could be remembered as the year when distressed and life-event property sales became a much more important part of the real estate conversation.

Not necessarily because the entire housing market collapses.

But because several pressures are converging:

• Mortgage affordability remains difficult.

• Buyers have become more selective in many markets.

• More sellers are adjusting asking prices.

• Foreclosure filings and serious mortgage delinquencies have increased.

• Major life events continue to create property sales that can't always be postponed.

Does that guarantee distressed properties will dominate total home sales next year?

No.

But I believe the warning signs are significant enough that homeowners, buyers, and real estate professionals should be paying attention.

And one more thing.

If you're a homeowner facing a difficult situation, you are not a statistic or an investment opportunity.

You're someone who deserves to understand your options before making a major financial decision.

That's what this business should be about.

2027: The Year of the Distressed Property?

I'm putting my prediction out there now.

We'll see how the numbers look a year from today.

And I'd love to hear what you think.

Are we heading toward a bigger market shift, or do you think the housing market will rebound in 2027?

Have Questions About Selling a Property in Maryland or Delaware?

Whether you're considering a traditional sale, dealing with an inherited home, facing foreclosure, handling a reverse mortgage, or simply wondering what your property could realistically sell for, I'm happy to help you understand your options.

This article reflects my professional opinion and interpretation of housing market information available as of October 30, 2026. Forecasts are uncertain, and individual markets may behave differently. This article is educational and is not legal, tax, or financial advice.

About Dan McDevitt

Dan McDevitt is a Baltimore-area Realtor with Cummings & Company Realtors and President of RealVolution Homes Group, licensed in Maryland and Delaware. With more than 20 years of real estate experience, Dan specializes in helping homeowners and families navigate complicated real estate situations brought on by major life events.

His experience includes probate and estate property sales, selling inherited homes, selling a parent's home using a power of attorney (POA), divorce-related property sales, foreclosure and pre-foreclosure situations, short sales, reverse mortgage properties, bankruptcy-related property sales, and selling homes as-is.

Dan serves Baltimore City, Baltimore County, Harford County, Anne Arundel County, Howard County, and Cecil County, while assisting homeowners throughout Maryland and Delaware.

Disclaimer: This article is for general educational purposes and does not constitute legal, financial, tax, lending, or mortgage servicing advice. Reverse mortgage requirements vary by loan type and individual circumstances. Consult your loan servicer, a HUD-approved housing counselor, and a qualified Maryland attorney for guidance about your specific situation.