Maryland Short Sales & Foreclosures: Q2–Sep 2025 Update
Maryland’s distress market is shifting—filings up YoY, short sales rising from a low base, and county hot spots around Baltimore/PG. Here’s the data and what it means.
Maryland’s distress market is moving—but not spiraling. The newest reports show measured, data-driven shifts that buyers, sellers, and agents should understand as we head into year‑end.
Bottom line: filings are up year over year, short sales ticked higher off a small base, and county-level pressure remains concentrated around the Baltimore metro and Prince George’s County. If you’re deciding between loan mod, short sale, or riding it out, the facts below will help you choose the right lane.
The signal in the noise: five stats worth watching
1) Foreclosure filings are up YoY, but context matters. Maryland recorded 3,398 total foreclosure filings in Q2 2025, a +15.5% year-over-year increase. That’s meaningful, but it’s not a wave; it suggests a steady normalization from ultra-low pandemic levels rather than a sudden shock.
2) Monthly momentum nudged higher into summer. New foreclosure filings hit 565 in June 2025, up 10.8% month over month. Nearly half came from Prince George’s County, Baltimore County, and Baltimore City, reinforcing a long-standing geographic pattern: distress concentrates where affordability is stretched and household budgets are sensitive to rate and price changes.
3) Short sales rose—but remain a small share of sales. Maryland recorded 23 short sales in June 2025, up 53.3% from Q1. As a share of all sales, that’s around 0.34%—still a sliver of the market. Translation: short sales are increasing from very low levels, which creates opportunities in individual transactions without defining the overall market.
4) Mid-summer ranking looked elevated… In July 2025, ATTOM ranked Maryland 3rd‑worst foreclosure rate nationally, at 1 filing per 2,566 housing units. That put the state on watch lists and likely contributed to an uptick in investor and servicer activity.
5) …but early fall improved. By September 2025, Maryland’s rank improved to #11 with 768 filings (about 1 in 3,314 housing units). Top counties by rate were Caroline, Charles, and Baltimore City. That month-to-month drift reminds us not to over-read any single print; trends matter more than headlines.
What this means if you’re a homeowner
• If your monthly payment is unsustainable, start the conversation sooner rather than later. Lenders generally offer more options when you’re early. If selling makes more sense than modifying, a well-run short sale can cap losses and avoid a foreclosure mark. If you need a playbook for timelines, net sheets, BPO challenges, or escalation routes, here’s how we handle short sale approval assistance day-to-day.
• Expect more documentation, not less. Investor rules (FHA, VA, GSE, and portfolio guidelines) continue to evolve. Clean packages and clear hardship narratives still drive outcomes. If your file involves junior liens, HOA arrears, tax liens, or solar/UCC filings, plan your release strategy early—the first-lien approval window is not the time to start searching for contact info.
• A short sale is not a fire sale. The “discount” is determined by the investor’s net-proceeds math, property condition, and market comps—not by arbitrary percentages. Market-accurate pricing is the fastest way to approval.
What this means if you’re a real estate agent
• Pipeline planning: With filings up YoY and short sales inching higher off a small base, you’ll likely see more “maybe short” scenarios at listing appointments. Screening for hardship, reinstatement feasibility, and second-lien complexity saves weeks later.
• Time is the currency. Faster approvals come from clean, proactive files: complete packages, correct third-party auths, repair photos, and valuation notes prepared in advance of the BPO. If you’d rather keep your energy on pricing, showings, and offers, we specialize in helping real estate agents close short sales faster—handling lender calls, escalations, value disputes, and lien releases behind the scenes while you stay front-of-house with the client.
• Offer strategy: Buyers can account for third-party fees (including short-sale facilitation) in their offer price and, in some programs, request seller-paid closing costs. The goal is a bank-approved net that works—without killing the deal structure.
Direction of travel (not doom)
• Direction: Up modestly YoY on filings; monthly prints fluctuate, and rankings eased by September.
• Short sales: Increasing from a low base; still a small share of total transactions.
• Takeaway: Prepare, don’t panic. The best outcomes still come from early planning, accurate pricing, and organized packages.
If you’d like a candid look at timelines, approval odds, and net-to-lienholder math for a specific property, start your short sale with a quick intake (no obligation).
Source notes: Maryland DHCD “Housing Beat,” Q2 2025 (foreclosure totals, monthly new filings, short-sale counts). ATTOM Foreclosure Market Reports, July 2025 and September 2025 (state ranking, rate per housing unit, county leaders).
Inside Fannie Mae Short Sales: What Realtors & Investors Need to Know
When it comes to short sales, not all investors play by the same rules. If you’ve worked on FHA, VA, or Freddie Mac files, you know each one has its own quirks — and Fannie Mae is no excepti son. In fact, Fannie Mae shortales can feel like a completely different ballgame if you’re not familiar with how they operate.
At Crisp Short Sales, we’ve closed hundreds of deals with Fannie Mae over the years. Today, let’s unpack how their process works, what makes it different, and why having an experienced short sale processor in your corner can be the difference between closing or crashing out.
What Makes Fannie Mae Different?
While FHA and VA short sales run through government “waterfall” programs and Freddie Mac uses its automated Resolve system, Fannie Mae takes a more traditional approach. They rely heavily on their network of real estate agents to value properties and make decisions based on those numbers.
That means the broker price opinion (BPO) or appraisal carries a lot of weight — and if that value comes in high, getting your deal approved can become a real challenge. Unlike FHA (which has a strict 88% net proceeds minimum) or VA (at 84.05%), Fannie Mae does not publish a set percentage. Instead, their agents recommend what they believe the market will bear, and Fannie makes its call from there.
For FHA, VA, and USDA, the investor minimums are written in stone:
- VA: 84.05% of value
- FHA: 88%
- USDA: 88%
- Freddie Mac: Resolve system — fluctuates
Fannie Mae? Not so straightforward. Their requirements are determined by the agent assigned to the file and by internal review of that valuation. This flexibility can be helpful — but it can also feel unpredictable if you don’t know how to push back when a valuation is inflated.
If you’re handling a Fannie Mae short sale and the BPO comes in high, don’t panic. You can dispute it, but you’ll need more than just an opinion. Here’s what works best:
1. Photos that tell the story – Damage, deferred maintenance, and needed repairs should be documented clearly.
2. Comparable sales (comps) – Focus on properties in similar condition, not just nearby “move-in ready” homes.
3. Contractor estimates – Lenders take real numbers seriously. If a roof repair is $15K, show them.
4. Market feedback – If multiple buyers passed due to condition or price, that’s valuable evidence.
The key is persistence. Unlike automated systems, Fannie files are reviewed by people — which means your dispute package has a chance to make an impact.
A well-prepared Fannie Mae short sale can move smoothly, but here are a few things to watch for:
- Multiple valuation checks – Don’t be surprised if a second BPO or appraisal is ordered.
- Changing requirements midstream – Fannie may tighten net expectations if they feel the market has shifted.
- HOA dues or liens – Fannie won’t always approve additional costs outside net proceeds, so negotiations with HOAs or second liens need to happen in parallel.
The good news? With an experienced negotiator running point, these hurdles don’t have to derail your deal.
Why Agents & Investors Need Backup
If you’re a listing agent, you already know the workload on a short sale is no joke. Gathering documents, chasing lenders, fighting valuations — it’s enough to pull you away from doing what you do best: selling.
For investors, the frustration is just as real. You’ve got money on the line, but you’re at the mercy of a process that can stretch for months if not handled properly.
That’s wheres Crisp Short Sale comes in. We specialize in handling the heavy lifting — negotiating with Fannie Mae, assembling dispute packages, and keeping the file on track — all at no cost to you or your client. We only get paid by the buyer at closing.