In Maryland there are four basic ways to hold title to a property. This may also be referred to as ways to hold tenancy.
First of all, there is “fee simple”. This can be thought of the most basic and strong way to hold property. An example of fee simple is when you buy a home by yourself. You take the title in “fee simple” and have rights to use this property as you see fit (subject to county, state, or federal regulation) and the right to convey this property. This is the most straightforward and strongest form of tenancy.
Secondly there is “tenants in common”. This is when you own a portion of a property. An example of this is when you purchase a property with a friend. Here you could both take title of the property and share the property. The interesting point of this tenancy is that you can spell out the percentage ownership. So you might own 70% and your friend might own 30%, or you might own 50% and your friend might own the other 50%. This is often used in partnership-like situations.
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What is a Short Sale?
A Short Sale occurs when a Lender approves the sale of a property for less than the amount that is owed on a mortgage or mortgages. The name, Short Sale, comes from the fact that the Lender’s payoff is coming up “short”. In fact, the lender will also be paying the real estate commissions and other closings costs. The sellers in a short sale typically cannot receive any funds from the sale.
Lender Approval
A Lender must approve of the sale. This is accomplished by first sending a Short Sale Package to the Lender(s). Next, the file is assigned to a loan negotiator at the bank that reviews the Short Sale Package. At this point a negotiation will take place as the bank wants to get as much money as possible from the defaulted loan and the potential buyers want to spend as little as possible to purchase the property. During this process the bank will order a Brokers Price Opinion or an Appraisal. Once the bank agrees to accept a certain discount off the mortgage amount, Short Sale Approval Letters are furnished by the bank and a closing follows thereafter.
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