Charlotte short Sales and why they can be anything but short!

April 2nd, 2010 categories: Buying your Home, Our Charlotte Realtors

A Charlotte real estate short sale is not to be confused with a short salesperson! >

I’ll say up front this post about real estate short sales is not going to be the most exciting or particularly uplifting Talk Charlotte topic! Nonetheless if you are in this situation as (a Charlotte home seller) or you’re looking to purchase a short sale property hopefully this short (haha good one) explanation will help.

So just what the heck is a short sale and why is it different than a foreclosure?

~ well Wikipedia gives a very straightforward explanation ~ the transaction itself can be much more complicated (do not attempt this on your own)… from Wikipedia on Short Sales

“In real estate, a short sale is a sale of real estate in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold. In a short sale, the bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the mortgagor. This negotiation is all done through communication with a bank’s loss mitigation or workout department. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender, sometimes (but not always) in full satisfaction of the debt. In such instances, the lender would have the right to approve or disapprove of a proposed sale. Extenuating circumstances influence whether or not banks will discount a loan balance. These circumstances are usually related to the current real estate market and the borrower’s financial situation.

A short sale typically is executed to prevent a home foreclosure, but the decision to proceed with a short sale is predicated on the most economic way for the bank to recover the amount owed on the property. Often a bank will allow a short sale if they believe that it will result in a smaller financial loss than foreclosing as there are carrying costs that are associated with a foreclosure. read more

There is nothing wrong with buying a Charlotte short sale property – in fact a short sale is usually a little less foreboding than a full on Foreclosure sale and in both cases you can get a pretty good deal.

Please consider this though just because its says short sale, auction, foreclosure ~ the three oldest rules still apply

1. You get what you pay for
2. Buyer beware
3. Remember and repeat to yourself often rule #1 & #2

The other thing about short sales is they are most often anything but short — when you have distressed homeowners, mortgage companies and banks involved…well lets just say these thing take time and remember too your offer is a binding contract until it is accepted or rejected which means you may be in “buyer limbo” possibly waiting for months yes with an “s”! My friend and Tuscon Realtor Kelley Koehler (aka @housechick for you Twitterers) does a nice job discussing foreclosures and short sales on her blog post Buying Short Sales and Foreclosed Homes in Tucson

So bottom we are seeing a lot of short sale activity – Right now Rhonda has a beautiful short sale property in Foxcroft listed. The entire TalkCharlotte team went through rigorous Certified Distressed Property Expert (CDPE) training and ALL of the Talk Charlotte Team has earned their CDPE designation (more on that in a subsequent post). So we are ready and trained to help you in this new area of Charlotte real estate.

I will leave with this thought though…remember that the real estate market is very efficient and there are just as many fairly-priced “normal” properties for sale in Charlotte , ready to move into without all the hassles of foreclosure or short sale uncertainties ~ ask us and whether it’s a short sale or plain old home for sale (Jackie  has a beauty in South Charlotte) the TalkCharlotte team can help find the best home for you!

This entry was posted on Friday, April 2nd, 2010 at 9:32 am and is filed under Buying your Home, Our Charlotte Realtors. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

1. Realtor grills the short sale guys... | Mortgage Short Sale Resource said at April 2nd, 2010 at 12:12 pm

   [...] Talk Charlotte Real Estate Blog » Short Sales and why they can be anything but short! [...]

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