Short Sales – How To Avoid Foreclosure In Charlotte North Carolina

With real estate values in Charlotte North Carolina plummeting back to prices not seen since the 1990’s.  Charlotte North Carolina area Homeowners are finding it impossible to sell a home in Charlotte North Carolina and payoff the mortgage.  Those not behind on mortgage payments have two choices.  Wait several years until the Charlotte market corrects then sell.  Or, bring a BIG FAT CHECK to closing, pay down your mortgage, and hand the keys to the buyer.  Obviously, for people current on their mortgage paying somebody to buy their house is not high on their list of priorities.  Considering foreclosure in Charlotte is at an all time high, the number of people behind on their mortgage is staggering.  If you are behind you can either suffer a foreclosure or attempt   a Short Sale.

What is a Short Sale?

A Short Sale is when the Lender (the Mortgagee) agrees to accept as full payment an amount which is less than the actual mortgage payoff balance that is due from the Homeowner (the Mortgager).

  Can I short sale my own home?

In short, no.  A Short Sale should not be attempted by the homeowner.  Why?  Because when you are behind on your payments, each and every day that passes you are one day closer to a foreclosure auction.  There is no room for error and there may only be one opportunity to get the lender to accept the discounted purchase price.  There is much involved and little time do get it all accomplished.  A short Sale is best negotiated by a professional real estate team experienced in Short Sales.; That team consists of Negotiators, Appraisers, Inspectors, Real Estate Agents, Contractors, Surveyors, Attorneys, Title Companies, Mortgage Brokers, CPA’s and others that complete the team.  It is unlikely the Homeowner will have these team players readily available and functioning as a well oiled machine.  These professionals must work together to present your best case to the lenders Loss Mitigation Department in an effort to help you avoid Foreclosure in Charlotte.  The entire short sale process is best accomplished by a professional Charlotte area home buyer

Why would I agree to a short sale?

As a rule, the homeowner cannot receive any proceeds from the sale of a house sold through the Short Sale process so why would they agree to it?  Because a foreclosure will absolutely destroy your credit rating and in this day and age the availability of credit is everything.  Without credit you can’t buy another home, you can’t buy a new car, and you can’t run to the grocery store if you’re out of food and money before payday.  Most importantly a foreclosure will stay on your credit report for 10 years or more.  A Short Sale will drop your credit score significantly but it is temporary and not as damaging to your credit as a foreclosure.  In addition, it should drop from your credit report in 2-3 years.

; Why would the lender agree to a short sale?

When a bank has a non performing asset such as a house, and that house is not generating income through mortgage payments, the banks want and in many ways need that house off their books.  To get that house off their books they have two choices.  They can foreclose on the homeowner which can be a very lengthy and very costly expense to the bank with little or no possibility of recuperating those expenses from the Homeowner.  Or they can accept a Short sale.

The lender will agree to a Short Sale if and only if it makes financial sense.  Let’s face it, banks are in the business of making money or they won’t be in business very long.  If you’re behind on your payments and have low or even negative equity then it makes sense for the Lender to at least entertain an offer.  Although there are numerous factors in the equation, what the lender really wants to know is can they come out ahead financially by accepting a Short Sale?  Once proposed, they are going to do what’s in their best interest and hopefully that decision will benefit you the Homeowner and help you avoid foreclosure in Charlotte North Carolina. 

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