Charlotte Short Sales Trends 2012

Charlotte Short Sales Trends continue to track upward in the greater Charlotte Real Estate market.  As a Charlotte Area Realtor, I follow the sales of single family home sales in our greater region.  I have been tracking short sales over the past three years.  I find it helpful to watch trends to forecast where the Real Estate Industry is heading.

Keep in mind that each area of the country in unique.  Real Estate is local.  The Charlotte region experienced a very large expansion over the past decade.  Many were relocating from across the country; many from the northeast.  As the national housing sales slowed, so did the migration to Charlotte.  Yes, it will only be a matter of time until people move on with their lives and make their relocation happen regardless.

The trends:  In 2010, short sales consumed 4.5% of our market.  In 2011 it jumped to 5.7 and then in 2012 it is now at 6.4% of our total market share.  This is a continual rise.  Why?  I list and sell many short sales in the greater Charlotte region.  The down economy continues to take a toll of many families.  Real life happens and there often seems to be no way out.  If you purchased your home at the housing peak, what can you do.    Death, divorce, unemployed, family illness or job relocation are some of the major factors that force a person to sell their home.  What happens if you are $50,000 under market value?  What do you do?  You can not afford to keep paying your previous mortgage.  A short Sale is the answer.  It is much better on your credit report than a foreclosure and still gives you "some" control over your financial situation (as opposed to a foreclosure).

A short sale is never an easy conclusion but you really need to consider every option before you just resign yourself to a foreclosure.  Make the best of a bad situation.  The Federal Government just extended debt forgiveness for many short sales.  This primarily applies to your primary residence and your first mortgage.  The vast majority of 2nd lien holders also forgive the debt but it also depends.  Call me, Rick Waite today to make the best of this situation.  As a Charlotte area Realtor, I will do what ever possible to help.  Call me BEFORE you contract to pay anyone.  A short sale should not cost you for the services!  Learn all about Charlotte Short Sales; an education is the way to begin!

Charlotte Foreclosures and Short Sales: Which is best?

Most home buyers find various homes for sale as foreclosures and short sales and are unclear as to the differences.

Charlotte Foreclosures: A foreclosure is the term typically applied to a bank owned home. A foreclosure is the legal process in which the mortgage company takes possession of the home via legal means (auction). The mortgage company frequently purchases their asset at the auction, the home back at the auction, evicting, changing the locks, cleaning the home, repairing some of the damage, clearing all previous title issues, etc,). Many of the foreclosures met Government Insurance guidelines and are returned to the appropriate insuring agency after foreclosure (HUD, Fannie Mae, Freddie Mac, Etc.,). The most familiar of these foreclosures are HUD homes.

Bank owned homes are frequently aggressively priced and can close quickly. When making an offer on a bank owned home, you will typically have a response within 2 business days. Once your offer is accepted, you can typically close within weeks. The more aggressive the pricing, the more likely you are to have multiple offers. A wise home buyer realizes when it is a great deal and does not lose the home by trying to squeeze an extra $1,000 out of a home that is already discounted $50,000! If a Government Agency is involved in the foreclosure home then it can typically close within 45 to 60 days.


Short Sales: A short sale is still owned by the person currently on record as the owner. This is often a pre-foreclosure. The home owner is in financial trouble. The seller owes more on the home than the current market value supports and is asking the mortgage company to absorb the losses. Why would a mortgage company possibly just "accept the losses from the home owner"?

The mortgage company's other option is foreclosure. This incurs legal costs, title search, clearing other liens, greater risk of damage and more time.

For a Short Sale, the current mortgage company first needs verification that the home owner is unable to pay the debt. The lender then does extensive analysis to assure they are getting "fair market value" for the home. Mortgage companies typically "sells the loan on the secondary market" (investors) and now must go back to the investors and convince them that a short sale minimizes their losses. There are many hurdles for a short sale.

For a short sale, you often will not get an acceptance of your offer (yes, no or perhaps a counter offer) for four to six months. A smaller local bank may have a shorter time period but this varies. Many buyers lose patience during this extended waiting period and find another home.

A foreclosure is best if you need a home now and would like to close quickly. A short sale is a great option if you absolutely love the home, have time to wait and are able to close within 45 days whenever the bank decides to accept your offer.

I hope this helps clarify the process and the differences between a Charlotte foreclosure and a Charlotte Short sale. Naturally this applies to anywhere across the nation.

Let me know how I can be of further assistance. Visit my Charlotte Real Estate website and learn more about the greater Charlotte Real Estate market.

Thanks and have a great day!

Charlotte Foreclosures are hot commodity

Charlotte Foreclosures remain a hot commodity. As foreclosures in Charlotte come on the market there is a surging demand. A decent deal does not last long.

I am noticing a trend of Short Sales. Charlotte Short Sales are increasing for several simple reasons. Sellers are learning that before their home goes into foreclosure, the banks will consider a short sale with a ready, willing and able buyer.

The down side of a short sale is that the Charlotte home will not "close" for several more months. The banks/lenders are attempting to streamline their process but you must be very patient when purchasing a Charlotte Home via a short sale. It may take 5 months until the lender actually approves the Charlotte home for sale. Banks/lenders must go through an elaborate process to confirm true market value, assess the value of a foreclosure (less than a short sale based on the condition of the average home after the foreclosure), assure that the deal is an arms length transaction and "assume" the amount of the loss.

The decision to assume a loss for the lender is not necessarily easy and without risk. Consider every corporation to reflect "Survivor". There are always people watching and scrutinizing each decision. When you get too many people involved in a decision process, efficiency is lost exponentially.

Charlotte Foreclosures and Charlotte Short sales present opportunities for you if you are ready to buy today. Call me as your Charlotte Realtor at 704-770-6559 for a customized Charlotte Foreclosure home search. Caution: I share all or the greater Charlotte NC Foreclosures. Charlotte homes are not discounted like the hyper inflated markets but you can get discounts. Do not expect to see discounts like you will find in Florida, New Jersey, much of California, Vegas and Phoenix. These markets went up tremendously over the past 5 years. The discount you are really receiving is merely the market adjustments of a super inflated price. Charlotte Real Estate did not experience this type of surge. I share this so that you understand that these are the selling prices. I will also share recent sales so that you will know realistically what offers banks are accepting.

Charlotte Short Sales - Charlotte Foreclosures

There has been a new stumbling block recently encountered for the purchase of Charlotte Foreclosures and Charlotte Short Sales. As with any obstacle, they are often the byproduct of recent/past troubles. Many lenders are now requiring a preapproval from a direct lender and not a Mortgage Broker. I understand this to a degree but I recently lost a Charlotte Foreclosure Property because my buyer could not get a lender letter soon enough.

My new rule is to require each buyer to speak to a national lender to obtain the pre-approval beforehand. I like my Mortgage brokers and they rarely let me down. The problem is that the Bank does not know the credibility with each Mortgage Broker and they want to assure the Charlotte NC Foreclosure makes it to cosing and the buyer can actually get the loan. I have no doubt there are those out there with dubious ethics and "stating" that the person is approved but in reality did not really check thoroughly.

Charlotte Foreclosures and Charlotte Short Sales are in big demand and you better be ready when seeking a discounted property. The discount is based on a smooth transaction and a prepared buyer. Give me a call and I will help you gt ready and then find ideal Charlotte NC Homes for Sale.