Well, there is no definite answer. Some say this deal is not ideal in Charlotte NC while others say it is a smart move. In our opinion, buying a short sale house in Charlotte NC is a great opportunity. You should have some knowledge before jumping into this market. First of all, it is important to consult an experienced agent. Here is what you need to know about the Charlotte foreclosure market.
What is a Short Sale?
Usually, people tend to buy a short sale house in Charlotte NC as they believe it is a good deal. You should confirm from your agent if the house is a short sale.
You must know what a short sale is. A successful short sale means the seller’s lender can accept a discounted payoff on the house. The deal is subject to the lender’s approval and not the seller’s.
That’s because sellers must qualify for a short sale. If their agent sells very few short sales, that’s a red flag.
You must also know that the seller doesn’t need to be in default before a lender takes a short sale. A lender might consider it if the seller is current, but the value has dropped. The seller sometimes owes more than the actual value of the home. A discounted price would make the price at least equal to the market value, not below it.
Opportunities for Short Sale in Charlotte NC
As per the recent NAR survey , 25% of all homes sold were either foreclosures or short sales, in Charlotte. Charlotte, BC is a new hub for short sales and foreclosures. In Charlotte, these deals are now considered as “traditional” transactions. This brings many options for the buyers seeking short sale homes in Charlotte.
Starting Your Short Sale Home Buying Process in Charlotte NC
1. Review the Public Records
It is important to conduct thorough research before you give any offer. Your agent should know who is on the title, if they have filed the foreclosure notice and how much the seller(s) owe. This is very important because this information will help you make the right offer.
Also, the presence of two loans might put you in trouble. If the seller owes $160,000 on the first and $40,000 on the second, giving an offer of $160,000 leaves nothing for the second. The first should give something to the second to get cooperation, but it’s not as close as you would think. Usually, $3,000–$6,000 is acceptable.
2. Hire real estate agent having Short Sale Experience
It’s a disaster if the listing agent doesn’t have any short sale experience. To make the best short sale deal in Charlotte’s, hiring an experienced short sale agent is essential. He can help avoid problems, process your transaction, and save your interests.
3. Be Aware of the Qualification
A lender often doesn’t agree to a short sale unless the seller doesn’t have equity. He may also deny if the seller is unable to repay the variance between your sales price and the current loans. Sellers should give a hardship letter to the lender and might owe taxes on the amount of debt forgiven.
It is illegal for the seller to demand you (the buyer) to pay them as the right to buy the seller’s property. Never consider the sellers who propose this practice. In a short sale, the seller usually gets no money and the lender loses the money.
4. Give Offer & Documentation to Lender
Once the seller accepts your offer, the listing agent will send the offer to the lender for approval. You should wait until the lender accepts. The lender will need a copy of your earnest money deposit as well as proof of funds. Also, he will confirm that you have an approval for your loan. Send him a current preapproval letter for the lender, dated within the last 30 days. It is better if your agent shares the comparable sales list to endorse the offered price.
5. Give the Short Sale Lender Time to Respond
Once your offer is with the lender, give him a time frame to respond, after which you are free to cancel the offer. Some lenders submit short sales to the committee. Many decide within 2 weeks to 3 months. Being a buyer, you cannot contact the lender, neither can your agent. Only the listing agent should have the required information for the lender.
6. Don’t Forget to Conduct Inspections
Usually, the lender will not permit the seller to pay for the customary items that a seller would pay. These include home protection plans, pest or termite inspections, roof, and pest completions. You will have an option to buy the home “as is,” i.e. with no repairs. It is very important that you conduct a home inspection.
The Final Verdict
Buying a short sale in Charlotte NC is a great deal. You will find a profitable deal as there are lots of short sale options in the current market. To have a successful and profitable short sale deal, it is good to hire an experienced local realtor with a short sale experience.
Being a leading and licensed realtor and broker in North Carolina and South Carolina, Showcase Realty LLC is a renowned Broker. The Owner Nancy Braun, has been serving all your short sale housing needs for the past 16 years.
Contact Us to get an instant appointment!
Nancy Braun, 704-997-3794