The Basics You Need to Know About Short Sales in Charlotte
Short sales in Charlotte are used by homeowners who are selling their homes at a loss to the bank to prevent losing them to foreclosure. When you see an advertisement for a short sale, the home is basically in pre-foreclosure.
What is a short sale? A short sale is an agreement between the sellers of a home in the beginning stages of foreclosure and their lender which allows the home to be sold for less than the existing loan balance. If an agreement is reached by all parties, a short sale could save the sellers’ credit by avoiding a foreclosure.
However, a short sale is not a short process. It can be quite a lengthy process with many legal and financial aspects.
The basic short sale process flows as follows:
- The seller or his attorney contacts the lender to discuss the possibility of a short sale.
- The seller issues a letter authorizing release of the loan and property information to their attorney.
- A preliminary settlement statement is presented to and reviewed by the lender. The statement includes the proposed selling price, the amount left to be repaid and any itemized expenses.
- The seller completes a hardship letter for their short sale in Charlotte, including a description of the financial difficulties the seller is going through. The lender validates and confirms any and all financial difficulties.
- The seller provides financial documents including paycheck stubs, bank statements, a personal financial statement, monthly budget assessment and anything else required by the lender.
- Once approved, the buyer can proceed with the purchase.
What are the benefits of a short sale? The seller is oftentimes relieved of any debt associated with the property which they cannot afford. A foreclosure proceeding by the lender is avoided and the buyer purchases the home at a discounted price.
Whether you’re a seller who is interested in selling your home as a short sale or a buyer who wants to purchase a short sale in Charlotte, I can help or at the very least direct you to the appropriate professional who CAN help (attorney or CPA). Please call me today at (704) 491-3310 or email me at Broker@TheCharlotteScoop.com.