The Truth About Short Sales in Maryland: Spoiler Alert, They’re Not That “Short”
- Kat Moore — The German Realtor®
- Oct 10
- 4 min read
When buyers hear the term short sale, they often think, “Oh, quick process, quick deal, awesome price.” Reality check? Not so fast. A short sale has less to do with time and more to do with the seller’s lender agreeing to accept less than what’s owed on the mortgage. And banks aren’t exactly famous for moving quickly.
So if you’re eyeing a condo listed as a short sale, here’s what you really need to know before diving in.
⏳ How Long Does a Short Sale Really Take?
Let’s set the record straight:
Best Case: 60–90 days (if the seller’s paperwork is in order and the lender is feeling unusually efficient).
Typical: 3–6 months.
Worst Case: The lender drags their feet so long the deal collapses.
Yes, you read that right—something called a short sale can take half a year. Irony, anyone?
🏢 Why Condos Can Take Even Longer
Short sales already move at a snail’s pace. Add in condo rules and fees, and things can get stickier:
Unpaid HOA/Condo Fees: If the seller has skipped payments, someone has to cover the arrears. The bank may say “not our problem,” which means negotiating who pays—buyer, seller, or sometimes even the HOA itself.
Multiple Approvals: Some condos involve more than one lender. Every single one has to review and agree. If one says “no,” the whole deal stalls.
Extra Paperwork: Banks want the seller’s financials, hardship letters, and more forms than you can imagine. With condos, you also need HOA documents, resale certificates, and community rules thrown into the mix.
🔎 Step-by-Step: The Short Sale Process
Here’s what it looks like in practice:
Buyer Makes an Offer
You write an offer just like a normal purchase. The seller can accept it, but here’s the twist: it still needs lender approval.
Seller Submits to Lender
The seller has to provide financial hardship documentation, proof of income, and the accepted offer to the bank.
Lender Review
This is the waiting game. The bank orders an appraisal or BPO (Broker Price Opinion), reviews the seller’s hardship, and decides if they’re willing to take less money.
Approval or Counter
The bank either approves, rejects, or comes back with terms (like a higher price or asking the buyer to cover some costs).
Closing (Finally!)
Once approved, the closing timeline looks normal—30–45 days to wrap up inspections, finalize financing, and sign.
🧐 What Buyers Should Expect
If you’re considering buying a condo through short sale, here’s what to keep in mind:
Patience Required: If you need to move quickly (PCS orders, lease ending, new job starting), a short sale probably isn’t your best bet.
Financing Ready: Once the lender says “go,” you often have just 30–45 days to close. No time to start loan shopping.
Uncertainty: There’s no guarantee the bank will approve your offer—even after waiting months.
Potential Bargain: If you’re flexible and patient, you might score a condo for below-market price. Just remember: you’re paying with time and uncertainty, not cash alone.
✅ Pros vs. Cons of Buying a Short Sale
Pros:
Chance to buy under market value.
Less competition than foreclosure auctions.
Opportunity to buy in a neighborhood you might otherwise be priced out of.
Cons:
Long, unpredictable timeline.
Risk of the bank rejecting the deal.
Possible extra costs (unpaid HOA fees, repairs, lender conditions).
Emotional rollercoaster—lots of waiting, little communication.
📖 A Quick Story
I know of a buyer who fell in love with a short-sale condo. They made an offer and waited. And waited. Five months later, the lender finally approved—but by then, the client’s life had changed, and they no longer wanted the property. All that time for nothing.
That’s the reality of short sales: sometimes you win, sometimes you wait, and sometimes you walk away.
✅ Kat’s Takeaway
A short sale isn’t for the faint of heart. It can be a smart move if you’re flexible, patient, and prepared for a few twists and turns. But if your timeline is tight, you’re better off focusing on properties with a more straightforward path to closing.
Need help weighing the options? Let’s talk. I’ll walk you through the process, the risks, and whether a “short” sale is worth your time—or just the longest sale ever.
Kat Moore | Realtor | Advisor
Samson Properties
📞 410-414-5967 (cell), 443-975-7555 (office)
The Kat Walk To Homeownership
For those who like to dig a little deeper, here are a few of the references to use:
"Short Sales in Maryland — Southern Maryland Law"
Offers legal details about how a short sale works in Maryland, what seller/lender obligations are, and what the buyer needs to know. Southern Maryland Law
“What You Need to Know About Short Sales in Maryland — Belsky Weinberg Horowitz”
Good for the overview of short sales: the lender/homeowner agreeing to accept less, tax implications, and the importance of professional help (lawyer, tax advisor, real estate agent). Belsky & Horowitz, LLC
“HOA and COA Laws and Foreclosures in Maryland — Nolo.com”
Useful for specifics about homeowners’ association laws in Maryland, including how late fees, liens, and assessments can play into property transactions like short sales. Nolo
“Maryland Real Estate Agents Get New Rules on Handling Short Sales — Kass Legal Group”
This is helpful if you want to reference current rules/regulations affecting how agents can (or cannot) negotiate short sales. Kass Legal Group, PLLC
“Advice: Guidance For Individuals Providing Short Sale … — State of Maryland Labor / Finance Advisory”
For regulatory guidance and what sellers or agents need to understand about submitting short sale packages, required documentation, disclosures, etc. MD Labor
Disclaimer
This blog post is provided for general informational purposes only and reflects my perspective as a licensed real estate agent. It does not constitute legal, tax, or financial advice. Laws and regulations can change, and individual circumstances vary. Please consult a licensed tax professional, attorney, or other qualified advisor for advice specific to your situation.
Comments