Blog | Heise & Heise, LLP

From FSBO to Short Sale in Baltimore County

June 18, 2020 by heiseheisellp Leave a Comment

baltimore fsbo to short sale client We recently handled a matter where a landlord passed away and the tenant was interested in purchasing the Baltimore County property from the personal representative of the landlord’s estate. We were engaged to prepare the contract for the tenant as a for sale by owner transaction. After the tenant’s lender received the appraisal it became clear the contract sales price was $30,000.00 higher than the value of the property. The problem here is that the sales price was dictated by the funds that were necessary to satisfy the landlord’s existing mortgage. What do we do here to salvage the transaction and get the buyer in the home?

Fortunately, the principal real estate attorney at Baltimore-based Heise & Heise, LLP is also an associate real estate broker with Douglas Realty. We were able to list the property for sale as a short sale, market it, and ultimately write a contract for the tenant. Through the firm, we handled the short sale for the landlord’s personal representative, negotiated a sales price that was $30,000.00 less than the original sales price and obtained a $5,400.00 credit for the tenant.

The landlord’s personal representative was able to benefit from a full waiver of deficiency and release of lien. For added convenience, we also introduced the tenant to a local Baltimore-based title company offering some of the best rates around and has a great deal of experience handling Baltimore short sale transactions.

All of the parties appreciated the convenience of such a streamlined process with all services offered through one central office. If you are experiencing a similar situation please call our team of Baltimore real estate attorney’s at (410) 394-9504 us so we can discuss how we can help and the services we provide.

How the CARES Act Can Help Baltimore Homeowners

June 8, 2020 by heiseheisellp Leave a Comment

CARES Act short sale home in Maryland We recently brought on a few short sale clients in the Baltimore, MD area who purchased properties just before the Great Recession of 2007-2009. These clients saw the value of their properties drop drastically once the recession hit and did not seen the values recover. Some owners continued to occupy the properties as their principal residence while others rented out the properties and were left paying any shortgage out of pocket and suffering losses month-after-month.

The current housing climate caused by the Covid pandemic presents a unique opportunity for these property owners to divest themselves of a huge liability, while minimizing the consequences to their credit score. How so? The Coronavirus Aid, Relief, and Economic Security (CARES) Act requires the lenders to report to the credit bureaus that the borrowers are current on their loan or account if the homeowners are:

current on their mortgage;
enter into a forebearance or other accomodation with their lender (allowing them to suspend payments)
and are meeting the terms of the agreement

How would this look? Let’s run out a scenario for context. A property owner has a former principal residence that is underwater by $100,000.00. S/he purchased another home and is renting out the former residence. The rent coming in does not cover the full mortgage payment and the owner is paying $500.00 monthly to cover the shortage. S/he could enter into a forebearance agreement with the lender, negotiate a 4-6 month suspension of payments, list the property as a short sale and have the property sold before the forebearance period expires. The lender would be required to report that the loan is current during the marketing period while no payments are being made.

Additionally, where a loan is already in default some lenders are willing to suspend negative credit reporting. How this is handled varies from lender to lender, but the key it to contact the lender and work out an arrangement.

If you have a client nurturing along a property with negative equity and is current on their mortgage, or is in default, now is the time to reach out and encourage them to enter into a forebearance or other agreement, list the property as a short sale, skip 4-6 months of payments, sell the property and not take a hit to their credit score for the skipped payments.

Please call the experienced team of Baltimore, MD real estate lawyers at Heise & Heise at (410) 394-9504 for more details on how we might be able to assist you.

Heise & Heise, LLP Named Best Rated Baltimore Real Estate Lawyer

January 14, 2020 by heiseheisellp Leave a Comment

Best Real estate lawyers in Baltimore

I hope that the New Year is being as good to you as it is to us! We were very excited to be named as one of the top three real estate lawyers in Baltimore, Maryland for 2019.

This merit-based award from Three Best Rated, is based on a rigorous 50-point inspection which includes everything from checking reputation, history, complaints, ratings, satisfaction, nearness, trust, cost and general excellence.

This is our third consecutive year receiving this award and we are especially honored because we respect Three Best Rated’s ethos. They believe local businesses provide better and more personal services because they are a part of that community. A big thank you to our clients that continue to support us throughout the year . . . we could not do it without you!

Heise & Heise, LLP – Baltimore Real Estate Law Firm Recognized

December 10, 2019 by heiseheisellp Leave a Comment

BirdEye 2019 Best Lawyer Award for Fernandez Law Group Our Baltimore Real Estate Firm, Heise & Heise, LLP, was identified as one of the best law firms in America in the inaugural BirdEye Best Business Awards.

BirdEye selected the 10 best lawyers and law firms in 115 major cities across the United States based on publicly available review data on platforms such as Google, Facebook, Avvo, and more.

According to BirdEye, receiving this award is an indication of client satisfaction and a strong overall success in online reviews which serve as the foundation for becoming an obvious choice in the Baltimore Metropolitan area.

Here at Heise & Heise, LLP, we are committed to providing amazing customer service, quick responses and innovative approaches to your legal needs. Please call us today to let us know how we can help . . . we will keep an ear out for you.

For Sale by Owner: Roadmap to Sell it Yourself!

August 15, 2019 by heiseheisellp Leave a Comment

At present, we are seeing a pretty active real estate market in the Greater Baltimore area coupled with low interest rates that should continue for the foreseeable future. If you need or want to sell your home in Maryland, and live in an area where there is low inventory and properties tend to sell quickly, consider trying to sell without the high expense of a real estate broker.

Steps for FSBO in Maryland

Here’s how it’s quite possible to create marketing plan without a real estate agent being involved at all. There is no harm in hanging a for sale sign on your house for thirty days to see what happens. Oftentimes your neighbors will reach out to their friends and family who may be shopping to let them know that your house is available. Couple that possibility with the rise of do-it-yourself online marketplaces like Zillow, Craigslist and Facebook.

And if all else fails, the decision to market your house as a for sale by owner in Maryland is not irrevocable, you can change course at any point and involve an agent.

Maryland FSBO Tips

Price to attract buyers. Take a step back and put your emotional attachments aside, you need to figure out what your house is realistically worth. For a few weeks leading up to your offering pretend you are a buyer shopping for a house in your neighborhood. Go to open houses, search public sale records, research on Zillow and see what kind of value nearby houses have. You may also consider asking an agent for a comparative market analysis to see what their opinion is. Most agents will willingly do this with the thought that you will go back to them if you eventually decide to list the house for sale.

Protect agents. Make it clear that if a potential purchaser is working with a buyer’s agent that you will pay out one-half of a typical commission. This will be in the 2% to 3% range and will keep those agents showing your house and interest high.

Make your Maryland house a grabber. As you travel through open houses in your research phase take note of what those sellers have done to make their house attractive. Is the landscaping tidy and fresh? How is the curb appeal? Does the appearance of the house make it appear well kept and loved? Has the house been decluttered inside? Now take a critical look at your house and decide what you need to do to compete.

Marketing your Maryland property. Spend a few extra dollars and get an attractive sign made by a local sign shop. That will show that you are serious about the sale and projects a professional and prepared image. Prepare some quality color flyers with a few photos and detailing the highlights of the home. There are so many resources available online now such as Vistaprint or Fiverr that there is no reason not to bring your best efforts.

Stay relaxed. When you have a potential buyer and are negotiating the terms of the sale be calm. Try not to be too pushy, or impose unrealistic requirements, or you run the risk of running your potential buyer right into the arms of a buyer’s agent eroding your savings.

Give a little. A Buyer coming into a for sale by owner transaction without an agent is going to have to do a fair amount of work on their own. They will have to identify their own lender, home inspector, title company and other third party service providers. They will also likely have to engage an attorney to review or prepare the contract. What is the trade off? Discount your asking price a bit below market or offer a buyer credit so that your buyer can also enjoy some of your savings on real estate commissions. This will entice them to have patience with the process and see the purchase through.

Know when to call in the Maryland real estate professionals. While you can handle most home sale activities on your own you want to draw the line when it comes to preparing or reviewing a contract. This is where you want to engage an attorney to paper the transaction and ensure you are protected and entering into a binding agreement.

Click here for additional FSBO resources for Maryland homeowners.

Still have more questions? Contact our Baltimore real estate law firm today.