MJ Adams Law helps people through the short sale process in Maryland. It’s never a good situation to be in, but it’s something that can happen given the realities of owning your own home. My firm can guide you through the process and stand up for your rights. Reach out today to set up a free, no-obligation consultation to talk things over.
Do I Need a Lawyer For a Short Sale?
When you’re facing the prospect of a short sale, it’s obviously pretty difficult. Short sales often act as an alternative to foreclosure, helping you move on from a mortgage you can’t afford while limiting the long-term damage to your credit. Still, it’s not a simple process. That’s why talking to a lawyer can really help. My firm can:
- Review your lender’s approval letter to make sure you won’t be surprised by lingering debt or unclear terms.
- Handle talks with your lender, title company, and real estate agent so you don’t have to manage everything alone.
- Spot potential issues early—like hidden fees, lien disputes, or tax consequences.
- Make sure your short sale follows Maryland’s laws and protects your financial interests.
If you’re already feeling stretched thin, my firm can take some of the weight off your shoulders and help you make the best choice for you and your family.
What Documentation Will I Need for the Short Sale Process?
The idea of selling your home for less than what you owe feels like giving up. But in reality, a short sale is often a way to move forward rather than lose everything through foreclosure. Still, in order to even get to a short sale, you’re going to have to prove two things:
- You’re experiencing a genuine financial or situational hardship.
- The home is worth less than what you owe.
That means you’ll need to submit a short sale package with documentation that usually includes:
- Listing agreement for your home.
- Short sale addendum to the listing.
- Disclosure regarding default on mortgage—shows the lender where things stand financially.
- Contract with the buyer, including a third-party contingency clause if required.
- Specific language or forms required by the lender—particularly FHA, VA, or Fannie Mae programs.
- Proof of hardship (hardship letter explaining why you can’t keep the property).
- Financial statements—pay stubs, tax returns, bank statements.
- Closing credits requested by the buyer or lender.
- Required minimum time on “As-Is” sale—some programs require the home to be listed a certain period before ratifying a contract.
- Inspection, financing, and appraisal timelines—documenting when these steps occur is essential for lender approval.
- Any other specific documents required by the lender for their internal review.
When all your documents are complete, you’ll be ready for the lender’s review—and that’s when the process truly begins.
How Does the Short Sale Process Work?
Once your short sale package is complete and sent to the lender, the process really begins— and it can feel like a slow, uphill climb. Understanding the steps can help you stay patient and know what to expect.
- Sending the documents. First, your lender needs to receive and process all of your documents. They’ll review everything you’ve provided. Sometimes they’ll come back asking for missing or updated paperwork—which is completely normal. You may need to resubmit documents a few times to meet all their requirements.
- Negotiation. Once the lender has your complete file, they start reviewing the numbers and the offer from the buyer. This is where negotiation begins. Your lender might ask for changes, request additional approvals, or even counter the offer. Patience is key—on average, this review period takes 60 to 90 days, but every lender and investor operates on their own timeline.
- Valuation. With their review done, the lender will confirm your home’s value, usually through an appraisal or Broker Price Opinion (BPO). They may also review comparable sales of homes in your area, repair estimates, and photos. If they disagree with your valuation or the buyer’s offer, there may be a value dispute, which can add extra time to the process.
- Approval letter. If all goes well, the lender issues a short sale approval letter. This letter outlines:
- The final sale price
- Which costs the lender will cover
- Any terms you need to follow.Be aware that terms in the approval letter can differ from the original offer, so it’s important to review it carefully.
- Closing. Once the approval letter is in hand, you generally have 30 to 60 days to close. Your title company handles the final paperwork, we can review documents, and your home officially transfers to the buyer.
With the process completed, relief and emotion often mix—the foreclosure process has stopped, and you’ve completed a challenging but important step forward for you.
Get Help With Your Maryland Short Sale With MJ Adams Law
Losing your home in Maryland—even through a short sale—isn’t easy. But it’s not the end of your story. At MJ Adams Law, our Maryland foreclosure team can help you through the short sale process and make sure that you’re getting the best possible outcome for your situation. Reach out today to set up a free consultation.