The Charlotte Short Sale Market is a relatively recent phenomenon.  Charlotte Real Estate continues to have a strong demand but property values across the nation have decreased even in teh greater Charlotte Real Estate market!  As the national housing market slowly moves forward, Short Sales will be a reality.  First, what is a Short Sale and secondly, why are Charlotte Short Sales occurring?

What exactly is a Short Sale?  A Short Sale situation occurs when the home mortgage is greater than the current market value.  For example, your mortgage is $250,000 but the current market value is only $200,000.  There is a $50,000 shortage.  If you need to sell you home, what options do you have?  A Short Sale is one Option. 

The lender/bank must accept the "shortage" of funds at closing.  At a normal closing, the lender gets paid what is owed and the remainder (minus additional seller costs) gets paid to the seller.  In a short sale situation, the lender does not get paid in full (and writes off the loss), the home seller gets out of a bad situation and the new buyer purchases the home!

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A Short Sale is not a simple process and requires a lot of work and diligence.  This is both on the listing agent and the seller.  The Home Owner must work closely with their Realtor.  The lender requires a lot of information; please be mindful that the lender is making a decision on losing thousands of dollars.  Yes, there is a lot of personal information that you need to share upfront.  I can only help if you are open, honest and share your situation.  Some of the things I need to know are:  Is there a second mortgage?  Is there a HELOC (Home Equity Line of Credit)?  How long ago did you take out that money?  How far behind are you on your mortgage payments?  Is the home scheduled for Foreclosure?  Is there a bankruptcy involved?  How has your situation changed (honestly)?

I list short sales and can help you through the process.  You need a person you can trust with this situation.  Call me today to begin solving your problem.  No, I do not promise a quick fix but I am experienced and understand how to sell a short sale.

Why are Charlotte Short Sales occurring and why are they here to stay?  Many people relocated to Charlotte when they had 100% financing and were still uncertain of their income.  When the economy stalled, the job market followed and this placed a strain on many families.  Now add real life situations such as illness, divorce, child expenses.  A slow housing market may create an unbearable situation.  The home owner is in a predicament; you can not afford the mortgage but you can not afford to sell your home.  What do you do?

So what is the hope or possibilities for the home owner?  Will be either a foreclosure or a short sale; neither option is a great solution but a short sale is more helpful and often a better option.  How will it impact your credit?   There are many factors to consider to assure the Short Sale is an option. 

Buying a Charlotte Short Sale:  Patience is the first requirement when purchasing a Short Sale.  A short sale will often take several months before it can close.  When the lender accepts your offer, you will be required to close within 30 to 45 days.  So How much will the lender accept? 

The lender expects to receive market value for the home.  The lender will look at the list price and confirm that it is reasonable.  The Listing Agent should lower the price every couple of weeks in order to attract activity and then an offer to purchase the home. 

Will the bank consider a "low ball" offer?  You will likely wait three to six months to hear "no".  Your offer price must be fair before the lender considers it. DO NOT PLACE AN OFFER ON A SHORT SALE UNLESS YOU LOVE THE HOME!  This is essential.  If you do not love the home, I assure you that you will find a home of greater interest over the next four months.  A four month wait requires a lot of patience.  Consider that the bank may return with a counter offer or a flat denial.  

Charlotte Short Sales can be great deals and you are purchasing a home at a discount before the foreclosure frenzy!  Call today to list your Charlotte Area Short Sale or for a customized Charlotte Area Short Sale Home Search.  Learn more about Charlotte Foreclosures or return to my Charlotte Real Estate Home page to learn more about our region!