charlotte short saleAccording to ABC News.com’s Good Morning America, “As the national mortgage crisis threatens millions of Americans, more people than ever are choosing to short-sale their homes rather than face foreclosure.” The state of our economy and dip in the housing market has become a rough ride for many, especially for homeowners who have fallen behind on their mortgages, can’t sell their homes and are facing foreclosure. Lenders have also suffered tremendous losses as a result of the foreclosure crisis and now more than ever, are willing to accept short sales as a viable alternative.   

Benefits of a Real Estate Short Sale

A short sale is when the sale of a home or real estate property is less that the amount that is owed to the lender. For a short sale to happen, the mortgage lender must agree to accept less than the total amount that is actually due on the mortgage. The lender may choose to go with a short sale rather than foreclose simply because it saves them substantial costs incurred in the foreclosure process. They would rather eat the moderate loss of a short sale and walk away from the foreclosure headache. The borrower is able to walk away from their home and save their credit from total ruins, making a real estate short sale a beneficial economic solution for both the borrower and the lender.

Qualifying for a Short Sale

For a lender to agree to a short sale in Charlotte, NC or any where else for that matter, the borrower must prove their economic or financial hardship to the lender and their inability to pay their current loan. Most lenders have predetermined criteria for short sale transactions and their willingness to do a short sale varies. The steps for qualifying for a short sale that most lenders adhere to can be found in the article Short Sales in Charlotte NC.

Typically,  lenders these days have loss mitigation departments that are specifically set up to handle and evaluate foreclosures and short sales. Once the lender actually agrees to a short sale, the homeowner is allowed to sell the property for less than what is owed on the mortgage and all proceeds of the sale are handed over to the lender.

Beware of Real Estate Short Sale Sharks

Desperate homeowners facing foreclosure due to financial hardship need to beware of short sale home buyers and/or investors who are basically real estate short sale sharks. They prey on unsuspecting homeowners in crisis and can cause more harm than good, including eventual foreclosure. Obviously, short sale scammers are looking out for their own interests, not the other way around.  Therefore, never sign a deed, power of attorney or quit claim without consulting an attorney or your title company first.

Buying Short Sale Real Estate in Charlotte, North Carolina

The bottom line is that buying short sale real estate is a great way to purchase a home in Charlotte, NC at a bargain price. Leigh Brown, Charlotte’s premier real estate agent and short sale expert can help you find short sale opportunities in Charlotte, NC. Leigh understands the ins and outs of the short sale process and what a short sale buyer needs to look out for such as legal entanglements and/or unexpected tax ramifications.

For more information on short sales or if you are looking to purchase short sale property in Charlotte, North Carolina, contact Leigh Brown today!