Short Sales in Charlotte NC

When a homeowner falls behind on their mortgage, a short sale can be a viable option in lieu of foreclosure on their Charlotte, NC property. In today’s tough economic times, foreclosures are happening in every city and state. Short sales have become a possible alternative.

A short sale is when a lender agrees to accept less than the total amount that is actually due on the mortgage. Some lenders may refuse a discounted payoff because in certain situations, it is better for them financially to go ahead with foreclosure. Even when a lender agrees on a short sale, they may still come back and ask for deficiency payment, which is the amount paid by the borrower verses the amount that is due.

Qualifying for a Short Sale

If you are falling behind on your mortgage and are considering a short sale on your Charlotte NC home,  different lenders have varied requirements. You will need to provide your lender with an assortment of documentation.

Typically, in order to qualify for a short sale you will need to take the following steps:

1. Contact Your Lender – In most short sale situations, “time is of the essence” and although contacting your lender may seem like an easy and obvious first step, you may have to make several calls before actually finding the right person who not only handles short sales, but is capable of making a decision.
2. Submit a Letter of Authorization – Written authorization that gives your lender permission to speak with your real estate agent, lawyer, title company, and so on.
3. Provide a Hardship Letter – Statement that explains why you are unable to pay your mortgage such as loss of employment, illness, etc. A hardship letter is basically a plea to the lender to accept less than what you owe.
4. Provide Preliminary Net Sheet – Statement that shows the sale price you expect along with all costs of the sale, including real estate commissions, outstanding debts, unpaid loan balances, fees, etc. A qualified real estate agent such as Leigh Brown can prepare a preliminary net sheet for you.
5. Provide Proof of Assets and Income – Statement that discloses your assets and financial situation, including any savings, stocks, money markets, cash, real estate, etc. Lenders want proof that you are unable to repay your loan before they will agree to a short sale.
6. Provide a Comparative Market Analysis (CMA) – In certain situations, markets decline and property values take a hit, which could be why you are unable to sell your home. A qualified real estate agent such as Leigh Brown can prepare a comparative market analysis for your lender that shows prices of comparable homes currently on the market, sales in the past six months, any pending sales and so on.
7. Provide a Purchase Agreement – The lender will want a copy of an offer from a prospective buyer once you come to terms.

Buying a Short Sale Property in Charlotte NC

If you are considering  purchasing a short sale property in Charlotte North Carolina, you should have a qualified real estate agent, such as Leigh Brown, on your team. Leigh understands the complexities of how short sales work and what a buyer needs to look out for such as short sale tax events and legalities.

Buying a short sale property is a great way to purchase a home in Charlotte, NC that might otherwise be unaffordable and there are many Charlotte, NC short sale opportunities currently available. Leigh Brown, Charlotte’s premier real estate agent and short sale expert will help guide you through the short sale buying process every step of the way. Give her a call today!