#CharlotteNCShortSales

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Everything You Need to Know When Buying a Home as a Short Sale

Maybe you’ve come across Charlotte, NC homes listed as ‘short sales.’ So what are they?

Short sale homes are properties sold at a price lower than what is owed on the mortgage. These sales are initiated by the seller, which makes them different from lender-initiated foreclosures.

Short sale homes are often heavily discounted in price, and the competition from other buyers is often low.  However, buying a short sale property  takes longer to complete. Homes are sold as-is, which requires more effort on the seller’s part. Before you go ahead and look for short sale  homes, it will help to know everything about them first.  

What is a Short Sale?

A short sale (or pre-foreclosure sale) home is a property sold at less than the price owed for the mortgage.

It occurs when the homeowner is no longer able to pay their mortgage. Instead of having the home foreclosed, they will apply to the lender to get it short sold. Whether or not this pushes through will depend on two factors:

The home is worth less than what the seller owes.

The seller demonstrates financial hardship.

Unlike a traditional sale, the lender gets all the revenue from the sale. They may forgive the difference.

Likewise, they may also file for deficiency judgment. This lawsuit gives the lender the right to pursue the seller for the remaining money owed.

What is the Difference Between a Short Sale and a Foreclosure?

The difference between the two lies in the seller's control of the situation.

In simpler terms, a short sale is voluntary.

Here, the homeowner initiates the sale by submitting a financial hardship package to their lender. Everything is subject to the lender’s approval, of course. On the other hand, a foreclosure occurs when a lender seizes the property. Usually, it's because the owner is unable to make payments.

It's a more expensive process since the seller (and the lender) may have to file for bankruptcy.

Even with their differences, both processes only occur if the owner is unable to pay the mortgage.

In some cases, sellers may do so because they’re ‘underwater.’ In other words, they owe a lender more than the home is worth.

Both processes affect the seller's credit at the end of the day.

A short sale or a foreclosure will appear as ‘not paid as agreed.’ As such, it will linger on the seller’s credit report for seven years.

Despite this, a short sale can help the seller re-enter the housing market right away. This is possible with an FHA loan, just as long as you meet the following requirements:

There are no late mortgage or installment payments in the year before the short sale.

There are no late payments in the year before applying for a new mortgage.

Who Benefits From a Short Sale?

All parties benefit from a short sale.

In the seller’s case, they get to avoid foreclosure. There’s also a potential for debt forgiveness and absorption.

They also will save money since the lender - and not themselves - will have to pay for agent commissions and other associated sales costs.

As a buyer, you get to enjoy these benefits:

Discounted Sale Price

While a short-sold Charlotte, NC home will be priced according to market value, you may be able to get it at a lower price. The lender might be more than willing to cut their losses, which means they may sell the home at a discounted rate. Add to that, you don’t have to pay for closing costs or broker’s fees, since the lender pays for these.

Less Competition

Charlotte, NC, is one of the hottest housing markets of today, according to Realtor.com. With a sales growth of 13.8%, it’s no surprise that the prices in the area have increased by a whopping 5.2%.

With the offers that abound, it may be harder for you to get your dream home in this market. This is especially the  the case if you're looking for a price you can afford.

That's why Nancy Braun recommends looking into short-sale homes. It's a less competitive niche since most buyers tend to stay away from them. Unbeknownst to them, it's easier to make lower offers on these properties!

What is the Downside of a Short Sale on a Home?

As with any other transaction, there are some downsides to buying a short-sale home.

Sub-Par Home Condition

Not all short-sold homes are in disrepair. However, a good number of them are, and it’s mainly because their owners are strapped for cash. They may lack the resources to keep their Charlotte, NC home in good condition.

That said, short-sale homes are often in better condition than foreclosed ones.

Lengthier Process

Compared to a traditional sale, buying a short-sold Charlotte, NC home takes longer. That’s because the lenders (and lienholders, if any) need to be involved in the process.

The more lienholders there are, the slower the sale will be.

As for the seller's part, their doubts (and incomplete documents) may cause further delay.

Higher Risk

Short sale Charlotte, NC homes are sold as-is. They often lack typical disclosures, as you would find in traditional sales. As a result, the home condition or deal quality may not be as clear to an interested buyer.

More Work Involved

While every traditional sale requires research, buying a short-sold home requires more effort. You will need to look up the property's value, liens, and other potential issues. That said, Nancy Braun can help you with this brunt work - among many other things.

What is the Process for a Short Sale?

If you're interested in buying a Charlotte, NC home on a short sale, you will need to undertake these six steps:

1. Apply (and Get Approved) for Financing

Like a traditional deal, the first step is applying for financing. Of course, you need to be approved as well.

After all, the lender wants to see that you, the buyer, can carry payments on the property.

Getting a loan prequalification or a pre-approval letter is sure to come in handy. You’ll need to provide a copy on your offer, after all.

Is it Hard to Get a Loan for a Short Sale?

It's not, but the process can take longer than a traditional sale.

With the help of Nancy Braun and her real estate agents, though, you may reduce the waiting time to a few weeks (or months.)

That said, interest rates may fluctuate during the wait. The changes may benefit you - or they may not.

In most cases, the lender will refuse to lock in the amount for beyond 30 days, unless you pay a fee.

2. Get an Experienced Realtor - Like Nancy Braun

It's challenging to find the perfect Charlotte, NC home, especially ones on a short sale. If you want to get your hands on a great deal, then it's best to hire an experienced realtor like Nancy Braun.

As the owner and broker-in-charge of Showcase Realty, she has 24 years of experience under her belt. She has access to numerous Charlotte, NC listings, so you're sure to find the short-sale home of your dreams.

3. Do Some Research

It’s advisable to learn everything you can about the property.

The good news is you don’t have to struggle with this. Nancy and her agents have access to the Multiple Listing Service (MLS). This is a database of homes on the market, including those recently sold.

With the MLS, you'll get a bird's eye view of sales in the area. This should give you an idea of the value of the Charlotte, NC, short-sale home you’re eyeing.

Likewise, your research should involve:

Checking the amount the seller owes the lender

Knowing every person or entity with a property claim (lienholders)

Determining if there are any liens on the home

Searching the title

Again, Nancy Braun and her team can help you with all of these.

4. Make an Offer

Before placing an offer, make sure you understand the market and the conditions. This is why Nancy Braun recommends doing your research beforehand. Remember, the lender is trying to recoup as much as possible. On top of  that, they may have to meet specific investor guidelines.

This is why Nancy Braun recommends making an offer close to the property's market value. If you go too low, there's a big chance that the lender may end up rejecting it.

Tip: A large down payment  (preferably in cash) may help increase the chances of your offer getting accepted.

Why Do Short Sells Get Rejected?

The lender may reject your offer if:

You’re an unqualified buyer. The lender will check your credit history, job history, debt ratio, and many other things. Even if you can afford the mortgage, this doesn’t necessarily mean that you can afford a home.

The price is too low. The lender will reject the offer if they believe they’ll make more money with a foreclosure.

The short sale package is incomplete. This is often the case with agent-less transactions. But with Nancy Braun by your side, you’re sure that all the necessary documents are included in the package.

5. Have the Charlotte, NC Property Inspected

Again short sale homes are sold as-is. This means you may get it at a lower price if it has a couple of issues.

Sure, the seller should disclose any issues, but these are often relegated to the wayside.

Even if the low price is a steal, Nancy recommends having  the home inspected before closing.

This is essential if you’re applying for an FHA loan. It requires certain home repairs to be made, such as:

Peeled paint

Doors that don’t open and close properly

Leaks and plumbing issues

Leaky or defective roofs

As a short sale buyer, the good news is you have time to do this. There’s a due-diligence contingency period covered in the process, after all.

Inspections will give you an idea of the repairs needed,  and the costs that come with them. You don’t want to purchase a home where repairs cost more than the property itself.

6. Close the Deal

Say the lender has accepted your offer. Before closing, you need to make sure that they, and the lienholders,  are willing to release the collateral.

Likewise, the seller will need to submit the following documents for you to close the deal:

Hardship letter. This should detail the seller's problems and why they cannot make mortgage payments.

Proof of assets and income. This should include two years’ worth of the seller’s tax documents and bank statements.

List of liens. This should be an updated list of all liens, especially if the seller has racked up multiple debts.

Comparative market analysis. This is a study of similar homes on the market. It also includes recently sold properties. These data help prove that the seller owes more than the property's worth.

Once everything is set, you’ll be able to close on your short-sold Charlotte, NC home.

Who Pays the Closing Costs on a Short Sale?

In contrast to the traditional sale, the lender (and not the seller) pays for the closing costs. That includes agents' commissions and other related fees. Tip: if you want to improve your chances of getting the home, you can offer to pay the closing costs. This will absolutely make you rise above the rest, since the lender is trying to recoup as much money as possible.

What is the Average Time for a Short Sale?

Even if it has ‘short’ in its name, this type of sale is far from quick.

The process often takes longer at 120 days…and upwards of a year.

This is considerably longer compared to a  traditional sale. It only takes an average of 45 days.

For one thing, the short sale process is more complex. There is a lot of paperwork needed.

Even if you make a quick offer, the bank will need a few weeks (even months) to review it.

Let’s say the seller accepts your offer. The lender may reject it if they believe they’ll earn more by foreclosing the property.

In other words, the lender is in charge of the overall sale,  which is why the process takes more time.

There’s also the issue of liens.

The more lienholders there are, the longer the closing process will be. That's because everyone has to give permission for the deal to proceed.

If any lienholders refuse the sale, the lender has no choice but to go ahead and foreclose the property.

How Often Do Short Sales Fall Through?

According to research, only 40% of short sales close.

While a buyer pulling out is one reason, it’s often due to seller or lender issues. For example, even if the lender decides to release the home's lien, the lienholder is still free to sue the seller later. More often than not, this could prod sellers to back out from the sale.

This low rate is one of the reasons why you should hire Nancy Braun and her team. They can help you get through this major hurdle, among many other steps to acquiring a short sale home.  

In Conclusion: Is Buying a Short Sale House a Good Idea?

As you see, there are benefits - and some drawbacks - to buying a short sale Charlotte, NC home.

Yes , it’s cheaper, and there is less market competition.

That said, the property is often sold as-is. The process is longer, and there is a need to pay a bigger down payment amount.

If you don't mind these minor setbacks, then you're good to go. With Nancy Braun by your side, you're sure to get your short-sale home…and at an affordable price.

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9 Biggest Myths about Short Sales in Charlotte, NC

A short sale in Charlotte, NC, is a better option than a foreclosure. This type of real estate deal often involves homeowners in profound financial struggles. Since they can no longer meet up with their mortgage payments, they can get some relief by putting up their homes for a short sale.

There are several myths about short sales in Charlotte, NC, like time requirements can easily discourage a buyer, to name one. The short sale process is a complicated one, so the public has several misconceptions about it. Unlike regular property deals, a short sale can take anywhere from a month to a year to complete.

Tons of paperwork has to be done before the lender can approve the seller for the transaction. Additionally, the lender can even reject a buyer's offer even after approving the seller. Read on to learn more about short sales and the 9 biggest myths of it.

What Is a Short Sale in Real Estate?

A short sale in real estate is when a financial lender agrees to let a borrower sell their home for less than what is owed on the mortgage. It can be an ideal situation for the buyer while putting the original seller at a loss. Still, it's the most beneficial way to sell a home during a financial crisis.

The money realized from the sale goes to the lender. Then the lender will decide whether to forfeit the remaining balance. They may choose instead to recover a part of it through a deficiency judgment. However, this action is not always in their control to execute. It depends on the State Laws on deficiency judgments.

Some states generally approve lenders to seek deficiency judgments against the borrower. However, others don't. Nevertheless, the law governing this procedure is flexible. It is sensitive to certain conditions, including the mortgage agreement.

When Does a Home Go Into a Short Sale?

A short sale comes into play when a homeowner cannot meet the financial requirements of a mortgage. Instead of sitting back with no strategic move, the homeowner applies for a short sale. An approval means that the borrower and lender have agreed on a non-profitable deal under special circumstances. For example, the resident and the lender have to agree on a price value for the asset to be sold.

Typically, the lender will only agree to a short sale if the borrower is facing financial struggles. They may review the borrower's credit score. Or they may check their bank statement to verify their financial condition before approving the short sale.

However, before a property can enter into a short sale, the lender will also require that the home cost less than the seller's worth.

Why Make a Short Sale in Charlotte, NC?

Short sales in Charlotte, NC set the path right when an individual's finances go south and mortgage payments accumulate. Even though the seller won't profit from the short sale, the deal can free them from their mortgage debt.

Moreover, it will result in less damage to their credit than a foreclosure. A short sale helps sellers avoid the shame, sadness, and stigma that comes with a forceful eviction from their home.

People who experience foreclosures might languish from the fallout for several years. For example, they will be unable to purchase a home for another seven years.

Top 9 Short Sale Myths in Charlotte, NC

Charlotte, NC, short sales are becoming more popular by the day. If you're considering applying for a short sale, you should seek the correct answers instead of worrying about any myths. Here are nine short sale myths that are common to homeowners.

1. Buyers Disregard Short Sales

This is a popular short sale myth that you’ve likely heard. However, the reality is quite the opposite. Perhaps you have faced rejection and received appalling offers in the past. But for every buyer who rejects your short sale home, there are two more interested buyers.

Some buyers love the idea of a short sale. Investors who specialize in this type of deal will gladly buy a short sale home. Many buyers in the real estate market are actively seeking short sale deals.

If you work with a reputable real estate group, finding a buyer shouldn't be a problem. Also, the internet has more than enough reach to find you interested buyers. List your home on multiple platforms, and see how buyers flock around the deal.

2. Short Sales Don't Get Approved

If short sales don't get approved, why are they still common? Why do homeowners take the time to apply for a short sale? And why do people prefer it to a foreclosure? These are questions to ask whenever you get doubtful about getting a short sale approval. Although the process can be sluggish, homeowners do get approvals on short sales.

One of the best ways to speed up the process is to work with the right team. Many sellers have failed to secure a fair deal in the past because they didn't use professional help. So if you want to make a short sale without going down the wrong path, you should work with an experienced team.

An experienced short sale team will guide you through the application process until you reach a final agreement. Then they help you execute the short sale quickly and move on with life.

3. It’s Too Late For You To Apply

If you fall far enough behind in your mortgage payments to attract a foreclosure, it's easy to feel under pressure. You may think you have waited too long to apply for a short sale. Still, if you begin the process today, it might not be too late. You just have to do it right.

Good short sale experts always have legal assistance to push the foreclosure date out and gain the bank's cooperation. When you include such experts in your short sale procedure, you'll be able to create enough time to take the burden off your credit.

You can act now. Never feel there is no time for negotiation. Most lenders wait until the last auction day before initiating a foreclosure. Act now, and you should be able to get your short sale approved.

4. The Bank Won’t Offer a Loan Modification

Everyone applying for a short sale needs to call their bank at one point. When this happens, the bank will come through with a loan modification as an alternative to a short sale. Even if they know the process won't apply, they'll still approach you with one.

This part seems confusing to the majority of homeowners going down the short sale path. They are not comfortable with loan modifications, whereas the bank is just performing its duty. If the borrower is facing minor financial trouble, they can opt for a loan modification. It will lower the interest rate and extend the term of the loan.

However, banks will not process a loan modification and a short sale simultaneously. So if you choose to proceed with a short sale, the bank will close out loan modifications on your account.

5. The CARES Act Will Stop The Bank From Foreclosing on My Property

The CARES Act seems to have absorbed the impact of Covid-19 for many homeowners. Unfortunately, some homeowners receive false information about the Act’s provisions. The CARES Act can't stop your lender from initiating the auction on your property.

It can only halt your monthly mortgage dues for up to one year. Then it can restrict your lender from imposing late fees or negative credit reporting for utilities. However, the Act makes no restrictions on how your lender can recover the missed monthly payments after the forbearance. This means you need to make timely inquiries about payments.

Lenders don't stop their auction process, even if the bank stays mute about it for years. You may not be able to do anything about it at the last minute. So don't wait until the bank sends you a message. You may be at risk of foreclosure.

6. Short Sales Won't Work if There Are Other Properties And Assets in Your Name

Many people have been alarmed by such information in the past. As a result, they forgo attempting a short sale while letting a foreclosure eat up their credit. What if you found out that most homeowners making a short sale also have other assets? The majority of them have other properties, and nobody will penalize you for holding one.

The lender's willingness to give up the difference is what makes a short sale possible. When you miss a payment or realize you can't keep up, prioritize seeking the lender's pardon. It would help if you tendered suitable conditions alongside proof of financial struggle. It will likely help you to obtain timely consideration.

Lenders can't tamper with your IRA, or 401K retired accounts. In some cases, you may not be required to contribute to the deficiency.

7. Banks Prefer Foreclosure to Short Sales

This statement is a controversial opinion. The truth is, banks never want a foreclosure because short sales bring them more money.

Distressed assets cause huge disruption on their record. After foreclosure, the bank is unlikely to get more value from the sale of the property than what a short sale brings to the table.

Anyone telling you that the bank won't offer approval is probably inexperienced with short sales. Collection agents working for lenders often say this too. That’s why it’s best if you get your facts right. Resolving a bad debt through a short sale is far better than a foreclosure.

8. There Must Be Valid Proof of Financial Hardship Regarding Your Mortgage

You can't just hop into a short sale agreement without following due process. It's true that most lenders only commence short sale proceedings if you have missed a payment. However, you can make a short sale anytime.

The common belief out there is that getting approval is impossible until you miss a payment. Well, not quite. Nowadays, lenders want valid proof of a disruptive influx of monthly cash flow, pending or monthly shortfall. Once they notice that you can't pay your next mortgage, they will likely qualify you for a short sale. After all, they gain in the long run, and you only incur a little loss.

If you can't pay your next mortgage, you can apply for a short sale immediately. Don't wait until a foreclosure before you make a move. That's a common mistake most homeowners make. Ensure you hire a professional team, prepare your credentials, and file for an application immediately.

9. Making a Short Sale Comes With an Embarrassment

You're not the first person to run out of cash flow, and you won't be the last. Anyone can fall into financial trouble, so short sales are understandable. But you can hardly say the same about foreclosures. Being forced out of your home can cause stigma, disappointment, and even depression. Not to mention, it will often lead to an appalling credit score, compared to if you had made a short sale.

Imagine walking into an interview with a foreclosure recorded in your credit. Your records will hold that the bank foreclosed on your home. And potential employers will find it disturbing.

Listing your home as a short sale may not be an easy decision for you due to the mortgage's present worth. But it's far better than being forced out of your home.

Is a Short Sale Bad for the Buyer?

A short sale is often more profitable for the patient buyer. This is because the seller in financial distress will always sell the house at a reduced price.

On the minus side, the buyer is likely to find the property in a state of poor maintenance. Such a condition is typical since the seller is unable to sponsor renovations before the sale.

Can Short Sales Be Quick?

Short sales can be tiresome, especially because of approvals. But they can work faster with some professional help.

Normally the seller will hire a short sale agent to process the transaction, so buyers don't have to worry about this expense.

The short sale specialist has to provide all the lender-required information upfront. Some legal procedures will also help them to work through the bureaucratic processes that cause delays. Hiring an expert like this is a more efficient route to a short sale than going solo.

Final Thoughts

A Charlotte NC short sale agent realtor is all you need to execute a short sale and gain maximum comfort. Experts at Nancy Braun Real estate are ready to help you apply to your lender. Then they can market your home and help you avoid foreclosure.

Nancy Braun is a real estate expert with over ten years of professional experience. She runs her real estate firm with creativity and innovation to help buyers of real estate. So far, Showcase Realty is behind thousands of top-dollar sales in Charlotte, NC. Sell your home with a smile on your face; contact the experts today at 704-997-3794.

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What Is a Short Sale Approval Letter?

When buyers make offers on properties that have been for a short sale, proceeds usually are less than the amount that the owners owe on the mortgage. 

A short sale approval letter is made by a lender and issued to the seller if an offer for a short sale is approved. It is usually less than the amount the borrower will owe on the mortgage.

The lender issues this letter at the end of short sales, meant to demand the “short” payoff of the loan in exchange for releasing the lien on the property. Read on to know more about when these letters should be issued and how they contribute to actual short sales.

What Does Short Sale Approval Mean?

Short sales happen when properties get sold for lower than what is owed on the mortgage. The mortgage lender is the one who approves the “short” payoff.

A short sale approval only happens when a bank has determined that a homeowner qualifies for a short sale. Banks are the usual mortgage lender to most homeowners. So they will be the ones to approve the request to sell any property at reduced prices. 

The lender will accept a short sale when the property proves to be worth less than the mortgage’s balance. These can also be approved if the homeowner can’t afford to make the monthly loan payment. Often, people don’t have enough money yet to pay back the full balance, but they need to move out immediately.

An approval from the lender is required because they will be the ones receiving a lesser amount on the property than what the borrower initially agreed to pay. These are often used in place of foreclosures. A short sale is a much more appealing option for both the house and the homeowner.

How Do You Get Approved for a Short Sale?

Short sales are also appealing because they allow lenders to avoid foreclosure. This is a legal method used by lenders to enforce mortgage loans. Foreclosure can lead to the homeowner completely losing their house. Short sales can benefit owners more as they can cancel the debt they have with the lender.

Here are the necessary steps to take in getting short sale letters approved:

1. Talk to your lenders. In particular, talk to the department in charge of short sales. Usually, this is handled by the loss mitigation department. Smaller lenders have other departments which handle pre-foreclosure transactions.

2. Request the paperwork needed for short sales. The lenders will mail or email the forms needed to begin the process.

3. Compile all required documents for the approval. These include pay stubs, tax returns, bank statements, proof of unemployment. Proof of hardship like medical bills can also present extra data to support the approval request.

4. Double-check if all files and paperwork have been filled out and gathered. The lender will sometimes require a hardship letter, which is like a letter of intent. It explains why you are requesting the short sale.

5. Find a real estate agent. There are plenty of agents who are highly experienced in short sale situations. Real estate agent Nancy Braun is an example of the best in Charlotte, NC.

6. Submit the forms and requirements to the lender. You will have to wait until a short sale approval letter is issued.

The approval letter will enclose the details of the short sale. This includes the amount of time you have to sell the home. There will also be a minimum price set for the house.

How Long Does Short Sale Approval Take?

A short sale approval takes a long process. It can be frustrating and time-consuming. Sometimes there can also be risks that come along with it.

The estimated time for a short sale to be fulfilled is at least 60 to 90 days. However, this number can vary depending on circumstances. Good real estate agents can help lessen the timeframe if possible.

Who Benefits from Short Sales?

The Homeowner: An approved short sale can prevent foreclosure. It has a less significant impact on credit score. Short sales also make it easier to transition into more affordable housing.

The Buyer: Buyers get to purchase a property at a lower price. Buying foreclosed properties is also a hassle. This is why short sale approved homes are preferred.

The Lender: Foreclosure can also be a hassle to lenders. They would be the ones who have to sell the property, not the owner. Short sales offer more minor losses and an easier process.

The Real Estate Agent: Agents can earn profit from short sale deals. Usually, a percentage will be agreed upon between a buyer and their agent. This is also applicable to the homeowner and an agent. 

What Are the Risks of Buying A Short Sale Home?

There are pros and cons to purchasing a short sale approved home. Just like any housing process, it takes time and effort. If you’re a buyer and want to think things through, here are the risks that come with short sale homes.

The process is lengthy.

Compared to traditional retail sales, the short sale process is longer. It can be hard to pin down closing dates until the lender agrees to the short sale. If buyers are working on a strict schedule, short sales might not be the best option.

There are lots of obstacles.

Sellers are usually in financial crunches when their house is on short sale. This means the house might not be in the best condition. In addition to that, the time limits might contradict each other. Sellers can also cancel deals, or the lender chooses another offer.

Lenders will rarely pay the extra fees.

As a buyer, you might need to have more money than the short sale price. The lender will rarely pay for any extras. These include inspections, repairs, and the like. It could mean more costs for the buyer.

Your offer might not be accepted.

Expect some competition with short sales. Since the houses are lower-priced, it is likely that others will be interested in them too. This means your offer might be rejected. That can be not very assuring, especially if the house fits your standards perfectly.

Is buying a short sale a good idea?

If you’re a buyer and are hesitant, there’s no need to worry. With the right real estate agent, you’ll have little to no problems.

Short sale transactions are usually smoothly completed when you have a good agent with you. That’s one of the many things Nancy Braun can offer you.

Nancy Braun and her real estate company, Showcase Realty, have the best real estate agents in Charlotte, NC. Any transaction can be smooth and easy having a team of over 50 agents and staff.

Investing in a house on short sale will be a great idea. All it takes is a little bit of help.

Realtor.com. Nancy Braun - Charlotte, NC Real Estate Agent. https://www.realtor.com/realestateagents/nancy-braun_charlotte_nc_407222_247389544

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Many first-time buyers never consider buying a short sale home. It’s a shame too, considering that new homeowners can save a lot of money this way. For a first-time buyer in Charlotte, NC, a short sale is a great way to stay within their home buying budget.

Short sales are becoming more popular. They are a favorable alternative for homeowners who can no longer afford to pay their mortgage. This gives buyers, especially first-time buyers, the chance to get a great deal on a house. However, while a short sale can be great for a first-time homeowner., there are more steps involved than buying a typical home for sale. Your offer not only has to be accepted by the seller, but by their mortgage lender as well.

The short sale process is admittedly a bit confusing at first. It can be a difficult concept to grasp. This article will help you better understand what a short sale is and how it works. It will also go into the benefits and disadvantages of buying a short sale house. If you’re a first-time buyer, it will help you decide if a short sale purchase is right for you.

What is a Short Sale?

For a homeowner down on their luck, a short sale can be a lifesaver. It can be considered when a person is no longer able to pay their mortgage. A short sale helps the homeowner avoid foreclosure, and all the negative outcomes that follow.

A short sale can be set up if the lender is willing to accept less than the amount remaining on the mortgage. For example, if there is $100,000 left on the mortgage, the lender may accept $80,000 from the sale of the house. They may then choose to completely forgive the $20,000 difference. In some cases, that will be all the lender expects the homeowner to pay.

Before the lender agrees to a short sale, they will want to be certain the homeowner has no options left to pay the mortgage. This is why the lender will need proof of financial hardship. This might be proof of unemployment or a significant medical bill.

In a short sale, the lender has the final say. This means a buyer might put an offer on a short sale house, and the seller might accept it, but the lender may turn it down. The lender will want to recover as much of their money as possible. If they feel the offer isn’t enough, they can reject it.

What Makes a Short Sale House a Good Choice?

If you’re a first-time buyer, you’ll want to know the advantages of buying a short sale house. Here are just a few: 

The price. This is probably the most obvious reason to go for a short sale house. They can be listed for as much as ten to twenty percent under market value. If you have a limited budget and your dream home is just out of reach, you might consider looking at short sale homes. You’ll be able to get a bigger home or choose a better neighborhood, for the same money you’d be spending elsewhere. This is great for first-time buyers.

They’re a good investment. In a declining real estate market, if you bought your home under market value, then it provides a financial safeguard. In a healthy real estate market, it means the home has the  potential for larger profit in the future. This is important if you have plans to resell. If you buy a short sale house as a rental property, you can still charge regular rates for rent. You’ll end up making the house’s value back quicker than if you’d bought it at market value.

It can be relatively easy to get financing. Banks would rather avoid having to approve a short sale in the first place. If they do have to go into a short sale, they want a borrower who can pick up the payments. This is why they may offer buyers, such as yourself, attractive financing deals. They can continue receiving their regular mortgage payments this way. You can worry less about arranging a mortgage yourself.

Homeowners tend to be more cooperative. A foreclosure means an eviction. No one wants their house taken from them. Plus, foreclosures are very damaging to someone’s credit rating. In the case of a short sale, however, a homeowner’s credit doesn’t take as much of a hit. They also have more control of the situation than with a foreclosure. For this reason, they tend to be more cooperative and easy to work with.

What Makes a Short Sale Difficult?

A short sale is generally a great way to buy a house. There are some things that first-time buyers need to know, though.

The biggest drawback is the length of time it takes to close the sale. Compared to buying a regular house, a short sale can take a long time. The amount of time it takes is typically counted in months. There is a lot of paperwork to handle and a lot of major decisions are made by the lender. If you put an offer on a short sale house, be prepared for a long wait.

Even though the homeowner may be cooperative, it doesn’t mean the house is in perfect shape. You’ll be getting the house in as-is condition. If someone is in financial hardship, there may be repairs and upgrades that they were unable to complete on the home.

You may be beaten by another offer. Unfortunately, you’ll never be able to know how many other offers have been made. If someone comes to the seller and lender with cash and they are ready to buy, you might be left empty-handed, months into the short sale process.

Buying a house on a short sale has its pros and cons. If you’re a first-time buyer, though, it is best to go for it. A short sale will get you deals you can’t get anywhere else.

The secret weapon to a successful short sale buy is a good agent. They will guide you through the process. And it's even better when you get a Charlotte, NC, short sale agent. That’s the best level of expertise you can get, and Nancy Braun has it.

Don’t waste time when you can get that dream house of yours lined up. Call Nancy Braun at 704-997-3794 to get started today!

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How Long Does a Short Sale Stay on Your Credit Report in Charlotte NC?

A short sale is a favorable alternative to a foreclosure. This is especially true as in regards to its impact on the homeowner’s credit score. A short sale in North Carolina can remain on your credit report for up to 7 years. But, with proper management, it is possible to get a new mortgage in as little as two years.

There are two options for anyone who is completely unable to pay their mortgage. It can either end up in foreclosure or end in a short sale. However, not everyone may be able to secure a short sale. For those who do, they should be glad. It is preferable to foreclosure for the homeowner.

What Exactly Is a Short Sale?

For many people in Charlotte, NC, and the United States overall, it is difficult to pay off a house in full from the onset. Homes are expensive, and without any other options, many people would not be able to own a home. This is where the concept of a mortgage comes in. 

The lender will buy the home for you from the start, leaving you in debt to them. Each month, over what spans decades, a part of this debt is repaid to the lender. 

There are cases where the homeowner is no longer able to pay their mortgage. This is usually due to some form of hardship that changes their financial situation. Usually, missing four mortgage payments makes the lender begin the foreclosure process.

This is how the process plays out in most cases of people with hardship. Yet, there is another option available when payment of the mortgage can no longer go on. This is a short sale.

A short sale is a process by which the house gets sold at a price less than what remains for payment on the mortgage. For instance, consider a homeowner who has $200,000 left to pay on the mortgage. The house may then get sold for $180,000 to an interested buyer instead. This money goes to pay a part of what the lender is owed by the homeowner.

You may be wondering why the lender would be willing to take a definite loss on the property. Well, the loss is relative. A foreclosure and a short sale will usually cost the lender money in some form. In a foreclosure, the process can be lengthy and expensive. The home will usually not sell at auction for a price that cancels out what is left on the mortgage. This is besides all of the legal costs the lender will need to pay. A lender will usually weigh their options to determine which means is likely to result in less of a loss.

How To Reduce the Time a Short Sale Stays on Your Credit Report

A short sale will not appear on your credit report in those words. It will be termed a ‘settled debt’ or a ‘negotiated settlement’. But, this wording doesn’t mean it will have less of a hit on your credit. You can not predict the effect that a short sale will have on your credit. A study done by FICO showed that a higher credit score tends to take a bigger hit in the face of a short sale.

This damage to your credit report will remain for seven years. Luckily, managing your credit well can reduce this time to as little as two years. By then, you may find that you qualify to take out another mortgage. Foreclosures are not this gracious.

Here are some of the ways by which you can repair your credit after a short sale.

Save as much as you can. It is important to have some money set aside in case of bills or unexpected expenses. When you find yourself unable to pay off bills or credit cards on time, your credit record will take a hit. That’s not what you need when you’re dealing with a recent short sale. Ensure that you have emergency funds available. It’s never too late to start building that up.

Budget and get frugal. It’s not fun, but you’ll need to cut down on the things you spend money on which are not necessary. This will help in building up your savings. If you can, pay off all cards and bills on time. Your credit will thank you.

Pay everything on time! This is quite important. Your payment history comprises a huge part of your credit score. You need to pay off all bills as soon as possible. Avoid the grace period when rebuilding credit and always pay before the due date. Savings will ensure that you are never caught off guard by bills. If you tend to forget to pay them, you can set up automatic payments or a reminder. This is not exclusive to bills alone, but includes your credit cards as well. Make sure to pay off outstanding card balances, or at least pay part.

Be smart with your credit cards. There are a lot of ways that proper credit line management can improve your score. One way is to avoid closing open credit cards. It might seem like a good way to increase credit, but it creates the opposite effect. Following your short sale, you may realize that you can’t get an unsecured credit card any longer. In these cases, a secured credit card is a good option. Using them intelligently will be positive for your credit report.

How Can a Short Sale Agent Help?

A Charlotte, NC short sale agent will be able to help out with the processes that come with a short sale. It is important to know that selling a house via a short sale is very different from a regular sale. There is a vast amount of paperwork required, and it can be overwhelming. For someone who is going through hardship, the last thing they need is more stress in their life.

With a competent and experienced short sale agent, you can rest knowing you’re in good hands. You can worry less about compiling the short sale package and filing paperwork. Finding a buyer is also made easier. 

With a capable short sale agent like Nancy Braun, you can get your house sold as fast as possible. The quicker you complete your short sale, the quicker you can begin to rebuild your credit. The quicker you rebuild your credit, the closer you’ll be to being able to buy a new house.

Showcase Realty will make your short sale a stress-free process. Call Nancy Braun at 704-997-3794 to sell that house fast. Once you do, you can start towards rebuilding your credit.

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How long does a short sale take in Charlotte NC?

Are you thinking of doing a short sale? Although it may not be a perfect solution to your financial setback, it might be the best option at the given time.

Perhaps you are also wondering how long the short sale process takes in Charlotte NC. The answer is all short sales are different. An exact timeline is hard to determine. Sometimes, this kind of transaction can take up to three months longer than a regular sale. In a short sale, banks are losing money. It’s understandable why they are not too keen on it. So if you are considering a short sale as an option, you should be prepared for the process to be lengthy.

Here are important details you have to know regarding the short sale timeline:

Starting the Short Sale Process

The timeframe for selling your home as a short sale varies by state and is determined by many factors. These include the actions of the homeowner and that of the bank. It also depends on the internal process of the bank and the difference between the mortgage value and the value of the property.

To start the short sale process, the homeowner should submit a package as required by the bank. The following is a list of documents generally required by all banks for short sale submission:

1. An Executed Listing Agreement

The bank will want to know when the property came on the market and the name of the brokerage that listed it. They also need to see the term of the listing and the amount of the commission.

2. A Fully Executed Purchase Contract

It is important to note that not all banks will accept an electronically signed purchase contract. There are cases when the seller has to secure physical signatures on the contract. Make sure to inquire with your bank because an incomplete contract can cause delays.

3. Seller’s Hardship Letter

The hardship letter is one of the most essential parts of the short sale package. It explains why the homeowner is behind on the mortgage payments. It should also include what the homeowner has done to find a solution and why a short sale is the best choice at the moment.

Hardships that qualify for a short sale usually include the following:

loss of a job

job transfer

reduction in pay or work hours

divorce, separation, or marital difficulties

death of a spouse

medical expenses from a serious illness

natural disaster

incarceration

military service

4. Authorization Letter

The authorization letter is signed by the seller and gives authority to the bank to speak with the listing agent. This is important because without this letter, the real estate agent can’t negotiate with the bank.

5. Last Two Bank Statements

The last two most recent bank statements of the seller are also required for submission.

6. Tax Returns and Wage Documentation

The seller’s federal tax returns for the last two years are required. They should be signed, dated with all pages attached. The seller will probably also need to submit his last two years’ worth of W-2s (1099’s if you’re self-employed). He also should include his last two pay stubs and other documents supporting his wages.

7. Closing Disclosure

The Closing Disclosure, formerly known as a HUD-1, is an estimated closing statement. It is generally prepared by an escrow office. This document contains the property address, sellers’ names, and buyers’ names. It also has the estimated closing date.

Short Sale Approval Timeline

The process of selling your home as a short sale in Charlotte NC involves extensive paperwork sent back and forth between the bank and the homeowner.

After the seller has submitted the short sale application, he may also submit to the bank any offers on the property. It is also important to remember that banks may choose their own timeline to respond to the offers. The seller should be prepared for a long waiting period.

Collection of Documentation (One Week to Three Weeks)

As mentioned before, the homeowner should submit documents to show hardship in order to qualify for a short sale. The homeowner should also prove the value of the property.

The process of writing a letter and gathering necessary documents, such as pay stubs and bank statements, can take between 1 to 3 weeks.

Property Valuation  (One Week to Three Weeks)

After the seller has submitted all the necessary paperwork, the lender will review them. The lender will want to see the seller’s debts and assets, review their credit score, and the contract to purchase the home. Then, the lender will ask for property valuation. This can be done either by a real estate professional or an appraiser.

This process can take up to three weeks. It also depends on when the bank schedules an official appraiser. Once this has been done, the results will be sent to the lender.

Negotiations   (One Week to Three Weeks)

Once there are offers on the property, the homeowner can start sending them in to the lender. The lender may take a few weeks to respond to the home buyer. The lender will accept, reject, or counter the purchase contract.

This may take even longer if the home buyer and lender go through several rounds of negotiations.

Escrow and Closing (Up to Six Weeks)

The escrow process usually takes about four weeks in a traditional home sale. However, in a short sale, it may take longer.

Accelerating the Short Sale Process 

Unfortunately, delays in the short sale process are common. While there is no sure way to speed up a short sale, delays can be minimized by doing the following:

1. Make sure that the documentation is complete.

The short sale process involves an extensive amount of paperwork. The lenders will go over every detail. If one page is missing or one signature is left blank, the document doesn’t get processed. If paperwork is not reviewed for completion and accuracy, this can cause delays.

If you want to avoid setbacks, know what documents the lender will anticipate. Make sure to also review every document for any possible issue and regularly follow up with the lender.

2. Work with an experienced short sale agent in Charlotte NC

The best way to expedite a short sale approval is to be worked with a real estate agent who is experienced with short sales. If the real estate agent isn’t experienced with short sales, you’re likely wasting your time.

A short sale agent will find it easier to navigate the complex process of short selling a home. You should also work with a professional who has excellent negotiation skills to have the best chance of being approved.

Let our team at Showcase Realty be your trusted resource throughout the entire short sale process. We specialize in short sales and we are more than willing to assist you in finding a favorable solution for your situation.

Here are other benefits of having us as your short sale agent:

We believe that experience is necessary for a successful transaction. We have successfully represented both sellers and buyers in completing short sale transactions.

We understand the complexities of the short sale process and we know how critical the deadlines are.

We are tech-savvy.  We use top marketing strategies, technology, and systems. Our goal is to give our clients cutting-edge results.

We are professionals. We always adhere to the highest standards of integrity and ethical business practices. We practice honesty and integrity at all times and in all situations.

If you need help arranging a short sale or more information about the process, call me, Nancy Braun, at 704-997-3794! I will help you sell your home in Charlotte, NC.

In case you cannot view this video here, please click the link below to view How long does a short sale take in Charlotte NC? on my YouTube channel: https://www.youtube.com/watch?v=-2nIEb9JMxY&feature=youtu.be

[showcaserealty]

How to do a short sale in Charlotte NC?

No homeowner wants to face a foreclosure. However, certain things may happen that could result in your failure to make the monthly mortgage payments and plunge you into the distressing prospect of losing your home. Instead of going through the lengthy and dreaded foreclosure process, you can do a short sale on your home in Charlotte NC. 

A short sale is a transaction where the bank allows the delinquent homeowner to sell the home for less than what is owed. To do this, the homeowner finds an agent and puts the house on the market. If the home gets sold,  all the proceeds from the sale go to the lender. This saves the homeowner the expense of a foreclosure suit. 

If you are considering doing a short sale on your Charlotte NC home, you need to understand how the short sale process works and connect with the right short sale agent. 

Understanding a short sale 

The term short sale means that the home is being sold for less than the remaining balance on the mortgage. The lender can either forgive the difference or get a deficiency judgment against the borrower. This will require the borrower to pay the lender all or part of the difference between the sale price and the original mortgage value. 

The lender or the bank agrees to a short sale in order to recoup a portion of the mortgage loan owed to them. This kind of transaction tends to take some time. It also involves intensive paperwork. However, going through the short sale process is a better option than a foreclosure. This is because short sales are not as damaging to one’s credit rating as a foreclosure.

Doing a short sale in Charlotte NC

A short sale is like a traditional home sale, for the most part. The home seller gets in touch with a real estate agent and informs them that they would like to sell their property. Then they wait for potential buyers to start making offers. 

However, unlike a typical home sale, the seller needs to submit a short sale offer to their mortgage lender for approval. The bank or the lender must be on board with the transaction because they will be trying to recoup as much of the original loan as possible. 

Here are 6 steps in doing a short sale:

1. Getting a Property Valuation Analysis

If you are thinking of doing a short sale, one of the first things that you have to do is to establish the value of your home. Your lender won’t likely approve your application if there is enough equity in the home to sell and at least break even if it foreclosed instead. 

It is important to prove that you are upside-down on your loan. That means you owe more on the mortgage compared to the property’s fair market value. 

The lender will want documentary proof of the home’s value. You can ask your real estate agent to prepare a comparative market analysis (CPA). You can also work with a professional appraiser. Just keep in mind that the lender might request one of its own too. This is one of the reasons why you need to work with a real estate agent who knows the Charlotte NC market like the back of her hand.. 

2. Demonstrating financial hardship and providing documents

Before agreeing to a short sale, your lender will also need to know why you must sell the home. This is where the hardship letter comes in. 

In your hardship letter, you have to prove to the lender that you are no longer capable of making the monthly mortgage payments. You also have to show beyond doubt that you do not have any assets that would allow you to catch up on payments. You also have to show that the hardship you are experiencing isn’t likely to be resolved in the near future. 

Hardships that qualify for a short sale usually include any of the following: 

Death of a spouse

Separation or divorce

Loss of a job

Job transfer

Reduction in pay or work hours

Medical expenses from a serious illness

An adjustable interest rate reset

Military service, or

Natural disaster.

When you write the hardship letter, avoid including anything that would hurt your case. While throwing in a little emotion isn’t prohibited, remember to keep your letter to one page. Make sure to include documents that will prove the statement in your hardship letter. These may include:  

Authorization to release information

Your financial statement

Listing contract

Purchase and sale agreement

Your last two pay stubs

Two months of bank statements

Two most recent tax returns

Comparative Market Analysis (CMA) of value

The hardship letter should be convincing and detailed because it is one of the most important elements of the short sale approval process. The seller must immediately understand that you are in a position where the only options are a short sale, a foreclosure, or a bankruptcy. 

3. Contacting the lender for a short sale application

Get in touch with your lender about putting your home up for sale as a short sale property. Make sure that your home is eligible through your lender’s standards. You also need to discuss the amount your lender is willing to accept for a short sale offer. 

Just keep in mind that lenders are not too keen on short sales. You might have to keep after them and make multiple follow-ups to get the application and move forward. 

4. Reaching out to a short sale agent

If you think you qualify to sell your home via a short sale, you need to get in touch with a real estate agent who specializes in short sales. You need a Certified Short Sale Seller like myself to deal with this complex transaction. 

My name is Nancy Braun and I’m your designated Certified Short Sale Seller (CSSS) in Charlotte, NC. My expertise and experience will help you make the right decisions and will also guarantee a fresh start for you that is mortgage-free.

I can verify if you make a good candidate for a short sale. Through your letter of authorization, I can contact your lender on your behalf, help you prepare your home for sale, and list your house at the low end of fair market value.

5. Preparing the sales contract and submitting the documents

Once you have an interested buyer, the next step is to prepare the sales contract. However, this is subject to the lender’s approval. It is not considered final until then even if both the seller and the buyer agree on the terms.

The sales contract should clearly indicate that the deal is contingent upon the lender's approval. You can also include a copy of the listing agreement and proof of the buyer’s ability to purchase.

The lender will review the contract. They could approve the offer. They could also reject it. Sometimes, lenders reject the offer but outline which terms they would agree. 

There are also cases when lenders don’t respond at all. It's acceptable to keep following up until you get an outright rejection or at least some type of definitive response.

6. Negotiating the short sale and going to closing

Once you have the lender’s response, you need to show the contract to the potential buyer. The buyer can choose to accept or reject the lender’s terms.

If the contract is approved, the short sale closes. The property will be transferred to the buyer. The lender will receive all the proceeds from the sale of the home. Then, the original owner will be released from their mortgage loan. 

Although doing a short sale on your home may not be an ideal situation, you’ll have more control over the situation. You will also put yourself in a better position to recover faster.

If you need help arranging a short sale or you need more information about the process, call me, Nancy Braun, at 704-997-3794! I will help you sell your home in Charlotte, NC.

In case you cannot view this video here, please click the link below to view How to do a short sale in Charlotte NC? on my YouTube channel: https://www.youtube.com/watch?v=8ZcUjpm2qFg&feature=youtu.be

[showcaserealty]

Buying a short sale house is very different from buying a typical house for sale. In a regular sale, if you like the house and the owner is ready to sell to you, it is a done deal. As long as you have the financing for it, there’s nothing to worry about. It is different when buying a short sale house.

There are advantages and disadvantages to buying a short sale house. If you’re looking for a great house at a lower price, then it is a great idea. It takes time to close, though, and that might be the major downside. 

There’s many other factors as well which make buying a short sale house complicated. To make your decision, it is important to know everything involved with buying a short sale house. This post will help with that.

What Are the Advantages of Buying a Short Sale House in Charlotte, NC?

If the pros outweigh the cons, then it’s safe to say buying a short sale house is a good idea. Here are the advantages:

The price! This is the major advantage when buying a short sale house. The homeowner owes the lender money, which is what leads to a short sale. The lender’s major concern is getting their money back. So, they will jump at an offer that is as close to the appraised value as possible. As a buyer, you’ll be able to offer lower than what you’d pay otherwise to get the house. Of course, this doesn’t mean you can make a low-ball offer, and still expect to get approved. With a capable agent by your side, you should be able to offer an amount that will save you money and get you the house as well.

It can sometimes make financing easier. A short sale only occurs because the seller could not pay the mortgage any longer. The lender would love for the payments to continue, even if it is from someone else. That’s why if they see an offer that they like, they might offer the buyer financing. That is if their credit is good, of course. This makes the process so much easier, and helps cut some time off the long wait that a short sale usually has to close. This financing is more attractive with perks such as lower interest rates or the like.

You have less competition. During a traditional home sale, you might suddenly find the house taken by a buyer with a better offer. There's not much you can do about this. It might have been your dream house and such an outcome can be sad. With a short sale, you tend to have a lot less competition. This makes an outcome like this very unlikely to happen. A lot of people who buy houses are doing it for the first time. They tend not to go for the complications of a short sale. Even experienced homeowners may not want to deal with the time they’ll have to wait.

What Are the Disadvantages of Buying a Short Sale House in Charlotte, NC?

There are quite a few cons attached to buying a short sale house. You should make sure that none of these are deal-breakers for you before going for it.

It takes a long time. This is the biggest issue that many have with short sales. They take a long time to complete and close. It can be even more stressful because there is no fixed time period that it takes. The fact there are at least three parties involved means that a delay from one affects all. If there is more than one lender, it can get even more complicated. It can sometimes take more than a year for a short sale to close.

The lender might reject you. If they think that your offer is too low, they may reject it. Not only that, they may take months to decide before they do. If it is close enough to what they are looking for, they may make a counter offer. This can be good sometimes, but if you are not willing to pay that price, it is the same time wasted.

The price may change. This is different from getting rejected. The price that you see listed is sometimes not approved by the lender. It might sound like a good price to you and the seller, but the lender may have a different opinion. This can come as a shock when you get asked for a price much higher than you expected. With a good agent by your side, you shouldn’t fall into this avoidable mistake.

You are at risk of receiving a house in need of repairs. A homeowner is still able to fix any problems that the home may have before it gets sold in a short sale. The thing is, many of them won’t. It might not be because they don’t want to. A short sale is a point that a homeowner only reaches because of financial hardship. They likely don’t have the money required for expensive fixes or repairs. Sometimes the state of their hardship can show in the maintenance of the house. It is important to ensure that you have an inspection done before committing to buy the home. If you do decide to go for it after an inspection shows damage, get ready for the necessary expenditure.

Tips When Buying a Short Sale Home in Charlotte, NC

If this is your first time buying a short sale home, here are some tips to make things a bit easier:

Get an experienced short sale agent. Not all agents deal with short sales on a regular basis. Some have never! In cases like this, you want one who has closed many short sales. The agent will know the common issues that can arise and how to avoid them.

Ensure that you have an inspection done! Otherwise, you won’t have wiggle room on the price if you find the house needs repairs. This is a major way this differs from a regular sale. Have a thorough inspection done before you agree to anything.

Try your best to keep your credit optimal. Short sales are better with cash, but many people don’t have this option. Make sure that your credit is as good as it can be before proceeding. It’ll make financing much easier and the lender more likely to approve you.

Has a short sale house caught your eye in Charlotte, NC? What you need is an agent who will do her best to close that sale for you. There are a lot of ways a short sale can go wrong, so experience is important. Nancy Braun has exactly that.

Call Nancy Braun at 704-997-3794. In Charlotte, NC, there is no one better for the short sale business.

[showcaserealty]

👍Why You Should Choose Us to Be Your Charlotte Short Sale Agents

A short sale is no small task.

Are you a struggling homeowner facing foreclosure? Are you thinking about selling your home in a short sale? Before making any decisions, it’s important to consider all options. Make sure a short sale is the best choice given your unique situation.

Understanding Short Sales

A short sale is the sale of real estate that generates proceeds less than the amount owed on the property. The lender agrees to let you sell the property and to accept the proceeds in exchange for releasing the mortgage lien. In this kind of transaction, your Charlotte short sale agent will need to work with your lender in order to get approval to sell your home for less than the amount owed.

A short sale is only for homeowners who are facing a hardship, such as unemployment or severe reduction in income, divorce, bankruptcy, medical emergency, transferring to a job out of town, or death of a co-homeowner. The homeowner must also have an upside-down mortgage.

A short sale negotiation process with a bank is very complex and time-consuming. In today’s market, the right agent with short sale experience is a key individual in the process of avoiding foreclosure.

You will need the expertise of a short sale expert like me, Nancy Braun. My team and I specialize in short sales and we are more than willing to assist you in finding a favorable solution for your situation.

Here are some reasons why you should choose us as your short sale agents:

We are experienced

Just like in any other business, experience is important. Choosing the right short sale agent with unquestionable experience is necessary for a successful transaction.

In fact, experience is the most important characteristic when hiring a Charlotte NC short sale agent. If you make the mistake of hiring an agent who lacks the necessary experience, the short sale could result in exactly what is intended to be avoided, foreclosure.

The good news is our team at Showcase Realty have successfully represented both sellers and buyers in completing short sale transactions. We understand the complexities of the short sale process and we know how critical the deadlines are.

We are Tech Savvy

We understand the need to become tech-savvy to meet the shift in the industry and stay ahead of our game. With technology moving the real estate industry forward in leaps and bounds, it makes sense to work with agents who know how to use technology to your advantage.

My team and I use top marketing strategies, technology, and systems to give our  clients cutting-edge results, at top dollar, and in the least amount of time.

We are Professional

Our goal is to provide our clients with high quality, innovative, and exceptional real estate service. We always adhere to the highest standards of integrity and ethical business practices. We practice honesty and integrity at all times and in all situations.

Visit our website at http://ShortSaleAdvisors.us/  to find out more about avoiding foreclosure and going with a short sale.

Contact us now at 704-997-3794! We’re here to help you every step of the process.

In case you cannot view this video here, please click the link below to view Why You Should Choose Us to Be Your Charlotte Short Sale Agents in Charlotte NC on my YouTube channel: https://youtu.be/9aeat7OSSDg

[showcaserealty]

🏡Should You Choose a Short Sale Over a Foreclosure?

Short sale or foreclosure- which is a better option?

Are you having problems with making your monthly mortgage payments? You may be considering what to do next. You can either choose a short sale or a foreclosure. However, before you make any decision, it’s important to know the facts.  

How do foreclosures and short sales work?

When a homeowner misses three to six months of payment, the lender will record a notice of default. The homeowner will be notified that he is facing a foreclosure and he will be given a reinstatement period to make things right by paying off debts. If the mortgage balance is not paid off within the given reinstatement period, the homeowner receives a notice of sale and the property is then auctioned at a trustee sale to the highest bidder. This is what we call a foreclosure.

A short sale is an alternative to a foreclosure. With this transaction, the bank lets the delinquent homeowner sell the home for less than what's owed. There is an understanding that the sale price might not cover the balance of the mortgage.

The homeowner works with a Charlotte NC short sale agent and puts the house on the market. However, a short sale agreement does not necessarily release the homeowner from the obligation to repay any deficiencies of the loans, unless specifically agreed to between the parties.

There are many reasons why you should choose a short sale over a foreclosure.

Here are some benefits of doing a Charlotte NC short sale:

It’s the first step to financial freedom.

You are in control of your home sale, not the bank.

You will spare your family of the social stigma the foreclosure brings.

Your home sale will be handled like any other home sale.

You will have peace of mind because you know who will be buying your home.

Impact on your credit rating

A foreclosure can cause your credit rating to fall by 200 to 400 points. It also remains on a credit report for 7 years and can have a negative impact on your future borrowings and job applications. If a prospective employer runs a credit check on you, your job application may be denied if you have a foreclosure on your record.

On the other hand, a short sale can cause your credit rating to fall by 50 to 130 points, even though credit bureaus do not show the word "short sale" on your credit report. It may say "paid in full for less than agreed" or "settled for less," among other categories.

Buying a home again

Buying a home after a foreclosure or a short sale can be difficult. With a foreclosure, you become eligible to buy another home in 5 years, with some restrictions, or in 7 years with no restrictions. Aside from that, you have to report the foreclosure on all your future loan applications.

With a short sale, you may be able to purchase a new home immediately if your payments were never more than 30 days late and the lender does not require you to pay back the loan. Most lenders consider short sales in a better light and demand shorter waiting periods.

A short sale is better than foreclosure in many ways. Make sure to work with real estate agents who are experts in the art of negotiations of a short sale.

Visit our website at http://ShortSaleAdvisors.us/ for more information regarding short sales.

Call us now at 704-997-3794!  You need the right team around you to ensure the success of the short sale.

In case you can not view this video here, please click the link below to view Should You Choose a Short Sale Over a Foreclosure? on my YouTube channel: https://www.youtube.com/watch?v=EBtTNIqFHbM&feature=youtu.be