Who We Are                  Frequently Asked

Miliman & Steinberg LLC is a full service Maryland based law firm with an expertise in real estate short sale negotiations. Our staff is comprised of attorneys and negotiation experts committed to advocating for the needs of our clients.

Our professional staff are committed to going above and beyond to secure your short sale approval, giving homeowners the peace of mind and the time they need to focus on other important areas if life. 

HOW LONG DOES A SHORT SALE TAKE?
That's a great question with no exact answer.  With our team of specialists reviewing your file daily and contacting the banks several times a week, a 60-90 day timetable is reasonable.  That said, there are numerous players who need to be active and responsive to expedite the process, including the mortgage service and insurance companies.  We work hard to get everyone in line and working for you.  Receiving quick and complete responses from homeowners and their brokers is also key to a quick process.

WHAT IS HAFA? DO I QUALIFY?
HAFA stands for Homeowner Assistance Foreclosure Alternatives. Under this program, the lender will forgive any deficiency, postpone foreclosure proceedings while reviewing the short sale and will give $3,000 in relocation assistance at closing (to the homeowner or tenant if the home is a rental property). The loan must be for less than $729,000.  If there is a second lien, the second lender has to agree to accept 6% of their remaining balance or a maximum of $8,500 to release the lien and forgive the balance on the loan. Qualified homeowners are approved for HAFA on a case by case basis.

WHEN CAN I SHORT SALE?
Banks will consider a short sale when a homeowner owes more on their mortgage than the home is currently worth ("under water"), an unforeseen "hardship" exists and a homeowner can no longer afford their mortgage payments.  A hardship can be either personal or professional - the loss of a job, substantial change in pay, the death of a spouse or close relative, or divorce as just a few examples.  Banks will not approve a short sale simply because your home is "under water".  A hardship condition must exist. 

WHY WOULD.A LENDER AGREE TO TAKE A LOSS ON A SHORT SALE?
Banks are not in the business of losing money, but they are also not in the real estate business, and foreclosures force a bank to carry the significant costs to manage and sell your property. If the numbers work out, it CAN BE cheaper or more appealing  to avoid the costs and human capital required to manage and sell your property by taking a loss on the sale of your home through an approved short sale. 

WHAT'S SO COMPLICATED?
You might be wondering why you need someone to negotiate your short sale. Can't you just ask the bank if they will approve it? One quick call. 1-2-3 done. Sadly, it's not so easy.  One of the problems is that often times the bank you write your check doesn't even own the mortgage!  There are 3 major parties involved in approving your short sale (1) the servicer - this is the bank you send your mortgage payment too (2) the investor - the party that actually holds or owns the loan and (3) The mortgage insurance company.  Short sale negotiators have the complicated task of negotiating with all 3 of these parties, in addition to working with your broker to make sure all elements of the sale are in order.

CAN MY BROKER NEGOTIATE MY SHORT SALE?
The short answer is no. In 2013, Maryland past the MD MARS ACT  requiring that individuals who assist homeowners negotiate with their lenders either be (1) attorneys who engage in loss mitigation as their regular area of practice or (2) companies or individuals who comply with all of the requirements of the new law.  The MD law excludes real estate brokers from negotiating your short sale with the banks unless they otherwise comply with state regulations.  But at Miliman & Steinberg we work hand in hand with you broker to get the job done. The relationship between our staff and your broker is an important one, as we rely on each other for the information we need to get you the deal you deserve.

DO I HAVE TO BE IN DEFAULT IN ORDER TO SHORT SALE MY HOME
While the answer is difficult, one thing is crystal clear:  you should not intentionally miss a mortgage payment to try and quality for a short sale, nor should anybody advise you to do so.  You have a contractual obligation to make your mortgage payments - Intentionally missing your payments is a breach of that contract.  As stated above, the HARDSHIP becomes the most important criteria in determining your qualification for a short sale.  While the inability to make a mortgage payment is an obvious sign of hardship, an analysis of your larger financial picture will be more meaningful in determining the extent of your hardship condition.  Many lenders, including Fannie Mae, Freddie Mac and FHA provide guidelines that allow for a short sale even if the homeowner is current on their payments.  The programs being offered are constantly changing so it is important to speak to a knowledgeable professional. 

WHAT IS THE IMPACT ON MY CREDIT?
Your credit score is your financial reputation.  It lets creditors know how trustworthy you are, and determines interest rates you are offered, or if you are offered credit at all. One of the primary advantages of a short sale is that the impact on your credit is much more manageable than the devastating and long term impacts of a foreclosure. 

After your short sale is approved the lender will report the loan as settled or paid in full for less than the total balance. Your credit score will drop, but how much depends on other factors impacting your credit profile. A short sale can affect your score for as little as 12 – 18 months. The Negative impact of a foreclosure on your credit can last for as long as 7 years. 

Why can’t I just walk away?
If a tree falls in the forest and nobody is around to hear it, does it make a sound?
While that riddle has gone without definitive answer, one thing is absolutely certain:  If you walk away from your house the mortgage does still exist! Banks will pursue a deficiency judgment against you.  The property can go into foreclosure with all the negative implications that comes with. The foreclosure can take years, and in the meantime you are still responsible for all of the accruing interest, taxes, insurance, maintenance and homeowners/condo association dues. These mounting costs are then tacked on to the deficiency once the property is sold. Walking away is easy.  It's the problems that will follow you that you should be scared of. A Short Sale allows you to get out from under the burden of the burden of a house you cannot afford having to look back. 

IS HOME OWNERSHIP
IN MY FUTURE?

MAKING YOUR NEXT HOME YOUR NEW DREAM is our motto for a reason... because home ownership is possible after a short sale! According to Fannie Mae and Freddie Mac it will take approximately 2 years to qualify for a mortgage, and it will can take approximately 3 years to qualify for a new FHA loan. 
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