Category Archives for "Charlotte RE Investment"
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According to a new study from Lender Processing Services (LPS), GSE foreclosure starts have been accelerating and are currently at all-time highs. From May to June, foreclosures initiated by Fannie and Freddie jumped 21 percent.
The GSEs’ prime borrowers are performing the worst. Foreclosure rates among the agencies’ prime loans have soared nearly 400 percent since January 2008, with a notable hastening tracked over the last two months, LPS reports. That increase is second only to the swell seen in non-agency “jumbo” mortgages, for more than $729,750.
LPS says the recent momentum in GSE foreclosure starts coincides with Home Affordable Modification Program (HAMP) cancellations, with most of the volume concentrated in the very late stages of delinquency (six-plus months).
The latest HAMP statistics from the Treasury showed an extremely elevated number of cancellations from trial plans, as many borrowers who received temporary modifications have not been able to verify their income or have missed trial payments.
As of the end of June, 520,814 HAMP trials had been cancelled – more than have been converted to permanent status. In addition, 8,823 permanent modifications have been cancelled under the federal program.
In contrast, LPS says foreclosure starts have remained relatively stable over the last several months for the rest of the industry. The company puts the overall foreclosure rate as of the end of June at 3.65 percent, but notes that foreclosure inventories are still elevated.
According to LPS’ market data, total foreclosure starts for 2010 are at 1,456,000. That stat is lower than 1,682,000 for the same period in 2009, but up from 1,245,000 in the first half of 2008.
A Charlotte Short Sale is getting easier to purchase. According to RealtyTrac, 2010 is going to be the year of the short sale due to the large number of pre-foreclosure properties on the market. It is estimated that one in four US homeowners owe more than their home is worth. Now could be a good time to consider purchasing (or selling) a short sale as future home prices are expected to increase 9-12% in 2011. Simply put, this could be a great time to buy a Charlotte Real Estate Investment.
One of the biggest challenges in a short sale has been the time it takes to close a transaction. The challenge in completing a Charlotte short sale has been twofold: 1) getting the buyer and seller to agree and 2) getting the bank on board to agree to sell the home for less than the purchase price (and thus take a loss on its loan). It can be especially hard motivating a bank to sell if you do not have experience negotiating with banks.
But our team is beginning to see turn-around times decrease in a Charlotte short sale transaction. Communication with banks has improved, and so has the technology involved in processing short sales. A new technology platform called Equator has been rolled out by banks to facilitate processing of paperwork involved in a short sale transaction.
Also, banks are beginning to see that a short sale is in their interest. The bank makes on average 30% more from a short sale when compared to a foreclosure. An added bonus in a short sale is the condition of the property. Charlotte foreclosure homes are often trashed and subject to vandalism since these properties have been abandoned, but a short sale home is often occupied by the owners until the closing.
Banks are responding quickly to offers due to enhanced technology, but banks are also more receptive lately to aggressive offers from buyers as the number of homeowners underwater increases. Also, the implementation of HAFA (Home Affordability Modification Program) has provided incentives to the sellers, buyers, and the banks that will make a Charlotte short sale smoother.
Given that the market is finally moving in the direction of buyers, you may want to consider a short sale, especially in a Top 10 Market like Charlotte.
The time has never been better to take advantage of the many Charlotte real estate investment opportunities. According to FinestExpert.com, Charlotte is a Top 10 Market for Real Estate Investments.
The FinestExpert data would confirm that Charlotte is an ideal buy-and-hold real estate market. For the first-time homebuyer, a property could be found for less than it would cost to rent if the cash flow is right. For the investor, a strong buy-and-hold market could be an ideal starter property.
But before moving to invest in this undervalued market, make sure you understand the basics of a real estate short sale, and then get the help of a licensed Realtor in the Charlotte area.
Essentially, a short sale involves purchasing a home for a sum that is less than the amount owed on the home. Why would someone want to sell a home for less than what is owed? The reasons are sound.
A bank may be able to save a lot of money by letting a house go in a well structured short sale. If the property ends up on the court house steps, they could lose much more. That does not count the costs of staff, legal work, etc. The trick is being able to do two things well: 1) negotiate a good price for both parties involved in the deal, and 2) be able to keep the paperwork moving through the bank in a speedy manner.
This is where a licensed Realtor can help. A qualified Realtor can help you navigate the waters quickly and easily, and make a challenging process seamless. A realtor can also save you money. A well negotiated short sale can allow you more money to put into improvements, especially those qualifying for tax credits under the economic stimulus plan for 2010.
This is a great time to find Charlotte real estate investment opportunities, whether you are a soon-to-be home owner or an investor looking for properties to add real estate to an investment portfolio.