Maryland Short Sale Solutions
Need to Sell Your Maryland Home but Owe More Than It's Worth?
A Short Sale May Be an Option.
Falling behind on mortgage payments, facing foreclosure, or struggling to sell a home because the mortgage balance exceeds its value can feel overwhelming.
A short sale may provide a way to sell your property with your mortgage lender's approval, even when the proceeds aren't enough to pay off the entire mortgage.
Experience Matters When the Sale Gets Complicated.
Dan McDevitt is a Maryland and Delaware Realtor with more than 20 years of real estate experience and over 150 completed short sales since 2007. He helps homeowners navigate lender requirements, difficult property situations, and the challenges involved in selling when the mortgage balance exceeds the property's value.
Choose a convenient time directly on Dan's calendar.
No pressure. No obligation. Short sales require lender approval, and listing a property does not automatically stop foreclosure.
What Is a Short Sale, and How Does It Work in Maryland?
A short sale happens when a homeowner sells a property for less than the total amount owed on the mortgage, and the mortgage lender agrees to accept the approved sale proceeds so the transaction can close.
Short sales are often considered when a homeowner needs to sell but doesn't have enough equity to pay off the mortgage, closing expenses, and other obligations associated with the property.
Here's the important distinction:
A short sale is not the same as a foreclosure. In a short sale, the homeowner generally participates in selling the property to a buyer, subject to the mortgage lender's approval. In a foreclosure, the lender uses a legal process to enforce its security interest in the property.
The Maryland Short Sale Process: Step by Step
STEP 01
Review Your Situation
We start by reviewing the property's estimated value, mortgage balances, condition, potential liens, and your timeline. The goal is to determine whether a short sale is worth exploring and what other options may be available.
STEP 02
Prepare and Market the Property
If a short sale appears appropriate, we develop a pricing and marketing strategy based on the home's condition and local market. The property is then marketed to attract qualified buyers.
STEP 03
Submit the Offer for Lender Review
Once a purchase contract is secured, the lender reviews the proposed sale, supporting financial information, property valuation, and expected net proceeds. Additional documents or negotiations may be required.
STEP 04
Obtain Approval and Close
If the lender approves the short sale and all required parties agree, the transaction can move toward settlement. Approval terms, remaining debt, liens, and any potential legal or tax consequences should be reviewed before closing.
Do You Have to Be Behind on Mortgage Payments?
Not necessarily. Some lenders may consider a short sale when a homeowner has a documented financial hardship or other qualifying circumstances, even before payments are missed. Requirements vary by lender, investor, and loan program. Don't assume you have to stop making payments to explore your options.
Short sales require approval from the applicable mortgage lender or servicer and sometimes other lienholders. Approval is not guaranteed, and a short-sale listing does not automatically postpone or stop foreclosure.
Understanding Your Options
When Might a Short Sale Make Sense in Maryland?
Not every homeowner considering a short sale is in the same situation. Some are facing foreclosure. Others are navigating divorce, bankruptcy, an inherited property, or a mortgage balance that exceeds what their home could realistically sell for.
The right approach depends on your financial circumstances, property value, mortgage terms, and timeline. Here are six situations where exploring a Maryland short sale may be worthwhile.
Behind on Mortgage Payments or Facing Foreclosure
If missed mortgage payments have accumulated or a foreclosure sale has been scheduled, a short sale may be one option to investigate. Timing is especially important because lender review can take time, and a short sale does not automatically stop foreclosure proceedings.
Explore Maryland Foreclosure Options
Owe More Than Your House Is Worth
When the mortgage payoff, outstanding balances, and selling expenses exceed the home's market value, a traditional sale may require money you don't have available. A lender-approved short sale may provide an alternative, depending on your circumstances.
Divorce and Financial Hardship
Divorce can create difficult decisions about a jointly owned property, especially when mortgage payments have fallen behind. A short sale may be worth considering when both owners need to sell but the property lacks sufficient equity. Coordination with legal counsel may also be necessary.
Inherited Property With Mortgage Debt
An inherited home may have a mortgage balance, liens, deferred maintenance, or other expenses that exceed what the property can sell for. Depending on estate authority and lender requirements, a short sale may be an option for resolving the property sale.
Learn About Maryland Estate Property Sales
Bankruptcy and Unresolved Property Ownership
Filing bankruptcy does not automatically transfer ownership of real estate. In some circumstances, homeowners may remain responsible for certain ongoing property-related obligations even after receiving a bankruptcy discharge. A short sale may help transfer ownership, subject to required approvals.
Reverse Mortgage or FHA Loan Complications
Reverse mortgage properties and FHA-insured mortgages may involve specific servicing, valuation, and approval requirements. When a property cannot sell for enough to satisfy the applicable payoff, it may be necessary to explore an approved sale under the relevant loan program.
Explore Reverse Mortgage Property Sales
You Don't Have to Know Whether You Qualify for a Short Sale Before Calling.
Many homeowners contact me without knowing exactly what they owe, whether their property has equity, or what their lender might approve. That's okay. The first step is understanding the situation and determining which options are worth exploring.
Short sales are subject to lender and other required approvals. Bankruptcy, tax, deficiency, and foreclosure consequences depend on individual circumstances and should be reviewed with qualified legal or tax professionals.
Experience That Matters
How I Help Maryland Homeowners Navigate a Short Sale
A successful short sale involves much more than finding a buyer. It requires realistic pricing, careful preparation, lender coordination, and the ability to work through complications that can arise before settlement.
Here's how I approach these transactions and help homeowners move through the process.
01
Evaluate the Property and Financial Situation
I review the home's condition, estimated market value, mortgage balances, and potential obstacles to a sale. That helps us determine whether a short sale may be realistic and how to approach the property strategically.
02
Develop a Pricing and Marketing Strategy
Pricing a short sale requires understanding both buyer demand and the lender's valuation requirements. I develop a marketing strategy designed to attract qualified buyers while accounting for the property's condition and the lender approval process.
03
Coordinate With Experienced Short Sale Negotiators
I work with Capital Short Sale Group, an established short-sale negotiation partner, to coordinate lender submissions, document requests, valuation issues, and approval requirements. The goal is to keep the transaction organized and moving forward.
04
Address Liens and Complicated Property Situations
Second mortgages, condominium assessments, HOA balances, estate matters, and other obligations can complicate a sale. I help coordinate the real estate transaction with the appropriate parties, including title professionals and legal counsel when necessary.
05
Manage Time-Sensitive Foreclosure Situations
When foreclosure proceedings are underway, timing becomes critical. I help coordinate the listing and contract process with the lender and negotiation team, including requests for additional time when appropriate. A foreclosure postponement is never guaranteed.
06
Work Toward Approval and Settlement
Once a buyer is secured, I help manage the real estate side of the transaction through lender review, contract changes, inspections, and settlement coordination. The objective is a properly approved sale with clear expectations for everyone involved.
Short Sales Aren't Something I Just Started Doing.
I'm Dan McDevitt, President of RealVolution Homes Group at Cummings & Company Realtors. I've been licensed in Maryland and Delaware since 2004 and have worked with distressed property situations for much of my career.
150+ Short sales completed since 2007
20+ Years Real estate experience in Maryland and Delaware
Over the years, I've worked with homeowners facing foreclosure, divorce, bankruptcy, inherited property challenges, multiple mortgages, and difficult lender requirements.
Every situation is different. My job is to give you an informed assessment, explain what the real estate process may involve, and help you determine whether pursuing a short sale makes sense.
Short-sale approvals, foreclosure postponements, lien resolutions, and settlement terms depend on the lender and other applicable parties. Legal, bankruptcy, tax, and debt-related advice should come from appropriately qualified professionals.
Real Transactions. Real Experience.
Maryland Short Sale Case Studies: When the Situation Gets Complicated
Every short sale has its own challenges. Some involve foreclosure deadlines. Others require coordinating multiple parties, resolving property-related obligations, or working through difficult lender requirements. These two examples show how I've helped Maryland homeowners navigate situations that were anything but straightforward.
The Challenge
A Baltimore County condominium owner originally contacted me about a possible short sale. After speaking with a bankruptcy attorney, he decided instead to pursue Chapter 7 bankruptcy and believed he could walk away from the property.
Approximately three years later, he called me again after being served with a lawsuit from his condominium association for approximately $20,000 in unpaid assessments.
The mortgage lender had never completed foreclosure, meaning the condominium was still legally in his name. Although bankruptcy had addressed certain earlier debts, the association continued assessing charges after the bankruptcy filing.
The Solution
We listed the condominium for a short sale and secured a buyer. The transaction required extensive coordination and negotiations involving both the mortgage lender and condominium association.
The association agreed to accept a reduced amount to resolve its outstanding claim. The mortgage lender then agreed to allocate a portion of the short-sale proceeds toward satisfying that reduced balance.
The Outcome
The short sale successfully closed, ownership transferred to the buyer, and the negotiated association claim was resolved as part of the transaction. The former homeowner was finally able to put the unresolved property situation behind him.
The Challenge
A Glen Burnie couple was navigating a difficult divorce while falling behind on their mortgage. Disagreements and understandable distrust delayed the decision to sell for approximately seven months.
By the time both homeowners agreed to move forward with a short sale, a foreclosure auction had already been scheduled.
We successfully obtained a postponement of the initial foreclosure sale and began marketing the property.
Unfortunately, the FHA short-sale valuation resulted in a required lender net that was difficult to achieve given the home's condition and substantial repair needs.
The Solution
After months of showings without an acceptable offer, another foreclosure date approached.
I worked with our negotiation partner, Capital Short Sale Group, to find a workable financial solution. I substantially reduced my commission, and Capital Short Sale Group also reduced its negotiation fee.
Those reductions allowed us to adjust the listing price while still meeting the lender's required net proceeds. We secured a purchase contract before the second foreclosure date.
With a viable contract in place, we obtained a second foreclosure-sale postponement so the lender could review the transaction.
The Outcome
The lender approved the short sale, the transaction went to settlement, and the homeowners were able to complete the sale despite two scheduled foreclosure auctions, difficult valuation requirements, and the challenges surrounding their divorce.
Why Experience Matters in a Maryland Short Sale
These transactions illustrate why a short sale can require more than simply listing a home and submitting an offer. Understanding lender net requirements, coordinating with the appropriate professionals, and identifying workable solutions can make a meaningful difference when obstacles arise.
These are anonymized examples of completed transactions handled by Dan McDevitt. Individual outcomes vary. Short-sale approvals, foreclosure postponements, lender contributions, and negotiated settlements are not guaranteed. Bankruptcy, deficiency, and other legal questions should be discussed with qualified legal counsel.
Answers to Common Questions
Maryland Short Sale Frequently Asked Questions
If you're considering a short sale in Maryland, you probably have questions about the mortgage, foreclosure, lender approval, credit, and what happens after the property sells. Here are answers to some of the questions I hear most often.
What is a short sale in Maryland?
A short sale occurs when a homeowner sells a property for less than the total amount owed on the mortgage, with the mortgage lender's approval. The lender agrees to release its lien under the approved sale terms so the transaction can close.
A short sale does not automatically mean the lender forgives every remaining dollar of debt. Any deficiency or remaining obligation should be addressed in the approval terms and reviewed with qualified legal counsel.
Can I sell my house if I owe more than it's worth?
Possibly. If your mortgage balance and selling expenses exceed the property's market value, a lender-approved short sale may allow you to sell without bringing the full difference to settlement. Eligibility and approval depend on the lender, loan program, financial circumstances, and other obligations.
Do I have to miss mortgage payments to qualify for a short sale?
Not necessarily. Some lenders and loan programs may consider a short sale before payments are missed when there is a qualifying hardship or other eligible circumstance. Requirements vary. You should not assume that deliberately missing payments is necessary to explore your options.
Can a short sale stop foreclosure in Maryland?
A short sale may provide an alternative to foreclosure, but listing a home or submitting an offer does not automatically stop a foreclosure proceeding or scheduled auction.
In some cases, a mortgage servicer may agree to postpone a foreclosure sale while reviewing a viable short-sale transaction. A postponement is not guaranteed, and homeowners facing deadlines should seek prompt legal and housing-counseling guidance.
Learn more about Maryland foreclosure options.
How long does a short sale take in Maryland?
There is no guaranteed timeline. The process can take several months, depending on how quickly a buyer is secured, the lender's document requirements, property valuation, number of liens, and approval process. Some transactions move faster; others take considerably longer.
If a foreclosure auction is approaching, timing becomes especially important.
Will a short sale hurt my credit?
A short sale can affect your credit, but the impact depends on factors including payment history, how the mortgage is reported, and your overall credit profile. Missed mortgage payments may also affect your credit.
There is no universal credit-score reduction that applies to every homeowner. For advice about your individual credit situation, consult an appropriate financial or credit professional.
Will I owe money after my short sale closes?
It depends on the lender's written approval, the type of mortgage, applicable law, and any other outstanding obligations. Approval to release a mortgage lien is not necessarily the same as releasing the borrower from personal liability for a remaining balance.
Before settlement, homeowners should have qualified legal counsel review any potential deficiency or continuing liability.
Do I have to pay real estate commissions in a short sale?
In many approved short sales, the lender authorizes payment of certain customary selling expenses from the sale proceeds, which may include real estate compensation. The amounts and expenses permitted depend on the approval terms.
Homeowners should review the listing agreement, any buyer-broker compensation arrangements, and the lender's written approval to understand their responsibilities. No particular fee arrangement is guaranteed.
Can I do a short sale if I have a second mortgage?
Possibly. When a property has a second mortgage or home equity line of credit, additional approval or lien-release arrangements may be required.
Multiple liens can make the transaction more complicated because each applicable lienholder may have its own requirements. A title review and coordinated lender negotiations are often important.
Can I complete a short sale after filing bankruptcy?
A short sale may be possible before, during, or after bankruptcy, but the requirements depend on the bankruptcy chapter, case status, property ownership, and whether court or trustee authorization is necessary.
Bankruptcy does not automatically transfer ownership of a home. Condominium or HOA assessments may also create continuing obligations in some circumstances. Your bankruptcy attorney should advise you about these issues.
Can I short sale a house during a divorce?
Yes, a short sale may be possible when divorcing homeowners need to sell a jointly owned property that lacks sufficient equity.
All required owners must participate or provide legally sufficient authority, and any court orders or agreements affecting the property must be addressed. Coordination with divorce counsel may be necessary.
Can I short sale an inherited house in Maryland?
In some cases, yes. An inherited property or estate-owned home may qualify for an approved sale when the mortgage balance exceeds the property's market value. The person signing for the seller must have appropriate legal authority, and lender and estate requirements must be satisfied.
Learn about Maryland probate and inherited home sales.
Are there tax consequences from a short sale?
There can be. Depending on the circumstances, canceled mortgage debt may have federal or state tax implications, although exclusions or exceptions may apply.
Tax rules change, and the treatment of canceled debt depends on individual facts. Consult a qualified tax professional before making decisions based on a potential short sale.
What happens if the lender rejects my short sale?
A lender may reject a short sale because of valuation concerns, insufficient net proceeds, incomplete documentation, eligibility requirements, or other issues.
Depending on the reason for rejection, it may be possible to provide additional information, adjust the proposed terms, or explore another available option. There is no guarantee that a rejected short sale can ultimately be approved.
How do I find an experienced short sale Realtor in Maryland?
Ask about the agent's completed short-sale transactions, experience with lender approval requirements, approach to pricing and marketing, and how complicated liens or foreclosure deadlines are handled.
Dan McDevitt, President of RealVolution Homes Group at Cummings & Company Realtors, has completed more than 150 short sales since 2007 and works with Capital Short Sale Group on lender coordination and short-sale negotiations.
Have a question that isn't answered here?
Every property and mortgage situation is different. You can reach Dan McDevitt at 410-670-4762 or dan@realvolutionhomes.com to discuss the real estate options that may be worth exploring.
This information is educational and is not legal, tax, bankruptcy, credit, or financial advice. Short-sale eligibility, approvals, deficiency obligations, and foreclosure timelines vary by situation.
More Ways We Can Help
Maryland Short Sale Resources and Related Property Solutions
A short sale is just one possible solution when a property becomes difficult to sell. Depending on your circumstances, other options may be available. These resources can help you better understand the challenges affecting your home and the next steps worth considering.
Foreclosure Prevention and Pre-Foreclosure Help
Behind on mortgage payments or received a foreclosure notice? Learn about foreclosure timelines, possible alternatives, and why acting early can help preserve more options.
Explore Foreclosure Options
Probate and Inherited Home Sales
Selling an inherited property can involve estate authority, mortgage debt, liens, repairs, and family decisions. Learn how Maryland estate property sales work and what to consider before listing.
Explore Inherited Home Sales
Reverse Mortgage Property Sales
Reverse mortgages can create unique challenges when a homeowner passes away, moves into long-term care, or needs to sell. Learn about HECM loan balances, property valuations, and lender requirements.
Explore Reverse Mortgage Help
Power of Attorney and Senior Home Sales
Helping a parent or loved one sell a property using a power of attorney? Understand how authority to sell, senior transitions, property preparation, and coordination with professionals may affect the transaction.
Explore POA and Senior Home Sales
Explore a Traditional Home Sale
Not every homeowner who is struggling financially needs a short sale. If your property has enough equity, a traditional market sale may provide a more straightforward path. Understanding your home's realistic value is an important first step.
Explore RealVolution Homes Group
Talk With Dan About Your Property
Not sure which situation applies to you? Whether you're facing foreclosure, considering a short sale, handling an estate, or simply trying to understand your selling options, we can start with a conversation.
Ask Dan a Question
The Best Solution Starts With Understanding the Numbers.
Before assuming you need a short sale, it's worth comparing your estimated mortgage payoff, property value, selling expenses, and available options. Sometimes a traditional sale is possible. Other situations require a more specialized approach. The goal is to make an informed decision based on your actual circumstances.
Let's Start With a Conversation
Not Sure What to Do With Your Maryland Home? Let's Talk About Your Options.
If you're behind on mortgage payments, facing foreclosure, going through a divorce, or simply owe more on your home than you believe it's worth, I understand how overwhelming the situation can feel.
I've been helping Maryland homeowners navigate difficult real estate situations for more than 20 years, including over 150 completed short sales since 2007.
That doesn't mean a short sale is always the answer. Sometimes there are other options worth exploring. My goal is to help you understand what may be possible so you can make an informed decision about your property.
Short-sale eligibility and lender approval are not guaranteed. Listing a property for short sale does not automatically stop foreclosure proceedings. Dan McDevitt and RealVolution Homes Group provide real estate brokerage services, not legal, tax, bankruptcy, or financial advice.
