According to ATTOM, Maryland had the highest foreclosure rate in April 2024, with one in every 2,214 homes having a foreclosure filing. The state also saw the highest monthly increase in foreclosure starts, at 85%. Moreover, it was among the top states with the most completed foreclosures, with 200 real estate-owned (REO) repossessions.
If your home in Upper Marlboro, MD, is now also a distressed property and on the brink of foreclosure, cash home buyers can still help.
To that end, our team at DBC Home Buyers curated this guide discussing foreclosures in the Upper Marlboro real estate market and the role of distressed property buyers. So read on, as what you learn here can help you avoid foreclosure and its long-term impact on your life.
Foreclosures in Upper Marlboro, MD: A Quick Overview
Maryland housing laws govern foreclosures in Upper Marlboro.
According to the Maryland Department of Labor, mortgage servicers must send a homeowner in default a Notice of Intent to Foreclose (NOI) after their first missed payment. “Servicers” are companies that collect mortgage payments (which can be the lenders themselves). A homeowner becomes “in default” the day after their first missed mortgage payment.
The NOI may include a Loss Mitigation Application, which provides the homeowner with foreclosure alternatives. The servicer must send an NOI to the homeowner in default no less than 45 days before filing a foreclosure.
If the homeowner can’t pay their mortgage debt after 90 days (120 for federal law-covered loans), the servicer or lender’s law firm can file the Order to Docket (OTD). Filing the OTD initiates the actual foreclosure process. The homeowner will get a copy of the OTD and a Preliminary or Final Loss Mitigation Affidavit.
Depending on the homeowners’ eligibility, foreclosure mediation may be available. If not, the servicer or their law firm can sell the distressed property. Once sold, the new property owner can evict the previous owner as soon as 15 days from the sale.
The Roles and Benefits of Cash Home Buyers
Help for struggling homeowners is available through cash buyers who purchase distressed houses before servicers or lenders foreclose and sell them. They’re real estate investors who provide cash offers, purchase homes as-is, and facilitate speedy sales. Because they don’t charge commissions, property owners can get more from the sale.
Preventing Foreclosures
According to credit reporting company Experian, foreclosure stays on one’s credit report for seven years. The seven years start from the date of the homeowner’s first missed mortgage payment, which ultimately led to the foreclosure. Every missed payment after the first one also shows up on the report.
Why You Should Avoid Foreclosure
Since foreclosure is a negative credit report item, it hurts your credit score. When your credit score suffers, so does your ability to get new credit.
For instance, following the foreclosure, you may find getting approved for a new mortgage loan difficult, if not impossible. You may also have difficulty getting new credit cards or services like auto and personal loans. Even if you get approved, expect higher interest rates than what you’d otherwise get if you had a high credit score or no foreclosure on your report.
Cash Home Buyers to the Rescue
Cash home buyers can help you steer clear of foreclosure by buying your distressed property with a lien before the foreclosure gets finalized. They can purchase your home before it gets sold in a foreclosure auction. You can then use the funds to pay off and clear your mortgage debt.
No Repairs or Upgrades Needed
One of the primary benefits of working with cash home buyers is that you can sell your property as-is. You don’t have to worry about making extensive repairs or upgrades to your home to make it more attractive. In its present condition, it can be appealing enough for real estate investors.
Making Cash Offers
Real estate investors can make a cash offer on your house in Upper Marlboro because they have readily available funds. They don’t rely on financing, minimizing the risk of a sale falling through.
On the other hand, if you sell to a buyer relying on financing, the deal could still be at risk of falling through. Such a disaster can happen if the buyer’s mortgage application gets denied.
No-Commission Sales
Home buyers and sellers typically work with real estate agents who traditionally charge a commission between 5% and 6%, per Investopedia. While these rates may change following a 2024 legal settlement, they’ll only go down, not disappear. So, you’d still have to pay an agent to sell your home if you go this route.
Let’s say your real estate agent settles on a 3% commission, and they sell your house for $250,000. You’d still pay $7,500 for your agent’s cut. If you’re facing foreclosure due to financial hardship, $7,500 is a lot of money to lose.
If you’d rather avoid paying a commission, consider partnering with a cash home buyer like DBC Home Buyers. We don’t need to charge commissions because we don’t work as intermediaries; we’re the actual buyers.
Quickly Completing Sales
When you accept a cash home buyer’s offer, they can start the process immediately and wrap things up quickly, closing the deal in as little as seven days. So, working with a reputable real estate investor, such as DBC Home Buyers, is one of the best ways to sell your home fast in Upper Marlboro. By selling your distressed property quickly, you can avoid the long-term consequences of foreclosure.
Sell Your Distressed Home in Upper Marlboro Quickly
Since foreclosure can cause severe damage to your creditworthiness, you should do everything you can to put a stop to it. One of the quickest ways to do this is to sell your distressed home in Upper Marlboro to reputable cash home buyers like DBC Home Buyers.
DBC Home Buyers is your local go-to if you need to sell your house fast for cash and in an as-is condition. We have decades of combined experience buying, renovating, and selling homes throughout Maryland. We’re proud to have helped hundreds of homeowners out of dire situations, including foreclosures, with our expertise and skills.
So, contact us today for a free, non-obligatory cash offer on your house!