Archive for the 'Charlotte NC Short Sales' Category
December 20th, 2009
Charlotte NC Foreclosures
Recent reports of increasing foreclosures in the Charlotte NC area, of course, put me immediately in research mode! I have to consider the affect that foreclosures will have upon my sellers and, as we are all aware, buyers who don’t mind rehabilitating property need to be aware of the foreclosure status in Charlotte NC as well. Spending time and money up front to resurrect a property that has been poorly maintained and perhaps stripped of as much as possible by the former homeowner, is a prerequisite to owning a foreclosure. Unlike short sales, the foreclosed properties are in far worse condition and that does not even take into consideration the hidden defects that those homeowners obviously have neglected during their ownership. I still was not convinced that we had as many foreclosures as was being reported and I was correct (see chart below).
Consider this: if what is visible to the eye is defective, chances are the property has been in serious need of general, mechanical and structural maintenance during recent years. There ARE hidden defects that can be quite costly to repair–especially if you know, upon first inspection, that the home has been poorly maintained. Showing several foreclosed properties this week to a client, who has now decided that he no longer even wants a foreclosure, opened our eyes to the ‘foreclosure real world!’ My client had been avoiding short sales at all costs and is truly not in a hurry to purchase but, just thought he’d ‘get lucky’ and find a wonderful deal on a foreclosure. After looking at several over the past couple of months with him, then sharing a short sale with him in a neighborhood near one of the foreclosures, he has finally seen the light!
A good number of the Charlotte NC foreclosures that are on the market have been poorly maintained while the short sales generally have the owners in place, maintaining it in order to see the home through the sale and then leave the property, (relieved that they are not going to suffer the same consequences that an owner who has been foreclosed upon suffers), in good condition. My client’s latest revelation summed it up pretty well and I thought I’d share it here–”If it took me 6 months to close on a short sale, it is worth the wait; I would rather be working those six months to save more for a down payment and have little, if any, costly repairs to be made than quickly purchase a foreclosure and have to WORK six months to pay for all of the hidden damages that I was unaware of!” He is now a converted, committed short sale shopper!
You know the best part of showing houses to him this week? The short sales that I showed were all HEATED! I didn’t have to wear my ear muffs INSIDE while showing houses!!
October 17th, 2009
Foreclosure or Short Sale–What’s the Difference?
Foreclosure or Short Sale–What’s the Difference?
Confused?
Losing your home to foreclosure is a painful event that continues to haunt you long after your home has gone back to the bank. Your credit score is severely affected and, regrettably, most people cannot be sure that they will remain safe from foreclosure because they haven’t foreseen the “unexpected.” Such events as serious illness, a major accident, divorce or job loss can happen to anyone at anytime. It’s a good idea to understand the available alternatives should such devistating events occur in your life.
So, what IS the difference between a foreclosure and a short sale? Simply put, the homeowner still owns the property with a short sale; when a property has been foreclosed upon, the BANK/LENDER owns it. The foreclosure process is quite expensive for the banks/lenders so, they generally PREFER you short sell the property than for them to proceed with a foreclosure. With a short sale, the owner still lives in the property and maintains it as normal–with a foreclosure, the distressed property is left vacant and is generally in ill-repair.
A short sale MUST be listed in your local MLS with a Realtor®. Your short sale specialist works to negotiate the short sale FOR you and follow the process all the way to Closing on your property with you. The bank/lender MUST reach an agreement with you and your buyer as to price and other contractural agreements as well as a Closing date. Again, your short sale specialist handles the communication of this entire process for YOU.
As well, with a short sale, the damage to your credit is far less extensive as with a foreclosure. A short sale can be erased from your credit in as short a period as 6 months and can take up to 2 years as opposed to at least 7 years with a foreclosure. The ability to get a handle on your finances early in the game is imperative–contacting your Charlotte NC short sale specialist can save you more than you know. You are able to reside in the property until the deal is Closed–a far more ‘respectable’ alternative to being evicted when the bank forecloses on the property.
Foreclosure is, by far, the worst available option for you. The result of a foreclosure is the lender taking ownership of your home/property. You will not only lose your property but, the bank/lender can obtain a judgment against you for the amount that you owe plus the costs for the foreclosure process that the bank/lender incurs. Your credit will be ruined for many years to come, further worsening your financial situation. This makes obtaining any credit, incredibly difficult. There is absolutely nothing positive about foreclosure. Avoid foreclosure at all costs.
Consider a short sale rather than allowing a foreclosure on your property. A short sale is an option for property owners with serious financial issues. In the case of a short sale, one sells their home for less than what they owe the bank/lender. Some lenders will not agree to a short sale however, most prefer it to going through the lending institution’s expense of a foreclosure. This is a time that you MUST have someone working for you that KNOWS short sales. Experts advise pursuing a short the minute you realize that you are in trouble. The longer you wait and the farther behind in your mortgage that you get, the less likely your bank/lender is willing to allow a short sale.
Any option is better than foreclosure! Do everything that you can before foreclosure occurs and do it as quickly as you possibly can. DO NOT WAIT! Consider a short sale and check with a short sale specialist before foreclosure is the only option remaining for you.
Don’t do this alone! Having someone to work on your behalf is priceless. Facing foreclosure is horrifying and going it alone is one of the most overwhelming experiences you can face in life. A short sale specialist is imperative in getting through this process with both dignity and composure. Don’t let pride stand in your way of contacting a short sale specialist–this is our JOB and we do understand. Let us do our job and help you through this proess so that you can avoid foreclosure.
You NEED an experienced Charlotte NC short sale specialist! Contact us today so that we can help YOU.
October 17th, 2009
What is a Short Sale? Do I Need a Short Sale Expert in Charlotte NC?
Edna Wellons, our first partner to complete her CDPE (Certified Distressed Property Expert), has begun her work as a short sale expert with three new short sale clients in the last two weeks. Our team is committed to helping those property owners in distress, to re-negotiate their current mortgage or complete a short sale before their property goes into foreclosure with the bank/mortgage lender. If you’re in need of a short sale expert in Charlotte NC, give one of the Maxwell House Group partners a call today.
We have had many inquiries about short sales in the recent past and thought we’d help clear up as many questions as we can for those Charlotte NC homeowners who are in need of short sale guidance. Charlotte NC short sales have proven difficult for many agents as they have not had a short sale transaction and do not have knowledge of the process. Our goal is to ascertain that you are walked through this process as painlessly as possible, by someone who is an expert in short sales in Charlotte NC.
What is a short sale?
A short sale is the sale of real estate in which the proceeds from the sale fall short of the balance owed on that properties mortgage. In a short sale, the bank or mortgage lender agrees to discount a loan balance due to economic or financial hardship circumstances of the homeowner.
These circumstances are generally related to the current real estate market and/or the borrower’s financial situation, whether it be job loss or other financial hardships. The negotiation process is done through communication with a bank’s loss mitigation department. The homeowner sells the mortgaged property for less than the outstanding balance of the mortgage loan, turning all proceeds of the sale over to the lender, sometimes (but not always) in full satisfaction of the debt, other times, not. The lender has the right to approve or disapprove any and all proposed sales. Each bank or lender is different and extenuating circumstances influence whether or not the bank or lender will discount the mortgage loan balance.
Typically a short sale is executed to prevent property foreclosure and the decision to proceed with a short sale is predicated by the most economic way for the bank to recover the amount owed on the property. A bank/lender will often accept a short sale if they believe that it will result in a smaller financial loss than foreclosing, as there are carrying and additional costs that are associated with a foreclosure. A bank will typically determine the amount of equity (or lack thereof), by determining the probable selling price from a Broker Price Opinion (BPO) or through a valuation of an appraisal. For the homeowner the advantage is avoidance of a foreclosure on their credit history. A short sale is typically quicker and less expensive than a foreclosure.
In a nutshell, a short sale is nothing more than negotiating with lien holders, a payoff for less than what they are owed for the property. This does not mean that the bank or mortgage lender will extinguish the remaining balance unless settlement is clearly indicated at the time of acceptance of the offer.
Short sales are common in business transactions in recognition that creditors are not doing debtors a favor but, rather, engaging in a business transaction when extending credit. When it makes no business sense or is not economically feasible to retain that asset, businesses default on their loans. This principle, now being practiced with individual property mortgages, is what is known as a short sale.
I can’t express strongly enough that if you’re in need of a short sale expert in Charlotte NC, ACT NOW–do not delay!
Copyright© 2009 By Debe Maxwell, All Rights Reserved…**What is a Short Sale? Do I Need a Short Sale Expert in Charlotte NC?**
October 17th, 2009
Financial Hardships that Qualify for a Charlotte NC Short Sale
Charlotte NC Short Sales: Are You in a Financial Hardship Downward Spiral?
Has the recent economy caused you to spiral into a financial hardship? Do you owe more on your home than it is worth and simply cannot make that mortgage payment? If you have recently suffered a hardship, or have arrived at the point that you just can’t keep up any longer, contact a short sale expert in Charlotte NC to assist you.
Our team represents sellers who are experiencing unfortunate events in their lives and need a remedy to prevent their property from being foreclosed upon. Foreclosure should NOT be an option so, contact a short sale expert NOW to reveiw you options with you.
Perhaps a mortgage loan modification (payment adjustment) or a short sale (pre-foreclosure) are in order. Our FREE consultation is well worth the few minutes that it will take you to spend with us to determine if you qualify for either program.
You must be able to prove financial hardship in order to qualify for a short sale. Below is a list of qualifying financial hardships that are commonly considered by the lending institutions:
- Business Failure
- Damage to Property
- Death of a family member
- Death of a Spouse
- Divorce
- Incarceration
- Job Relocation
- Medical Bills
- Military Service
- Payment Increase or adjustment
- Property Insurance or Tax Increase
- Reduced Income
- Separation
- Serious Illness
- Too Much Debt
A short sale is a financing option that is available to homeowners who simply cannot afford to make their mortgage payments due to circumstances beyond their control and who do not qualify for a loan modification. Using the above criteria that fits your specific hardship, we will guide you in writing your hardship letter to the lender. Should you need a sample of a financial hardship letter, please contact us immediately and we’ll send it your way.
Don’t delay, contact your Charlotte NC short sale specialists today! Time IS of the essence.
Disclaimer: All information provided by this author is strictly an opinion, is not guaranteed, may be based on information collected from several sources, which may or may not be deemed reliable at the time of researching this article and may be time sensitive.
October 8th, 2009
Is a Short Sale Right for YOU?
Is a Short Sale Right For You?
With the assistance of a short sale Realtor®, you may be able to save your credit tremendously as well as sell your home before it is foreclosed upon by your bank/lender. Realtors® who specialize in short sales are well versed in ways to save you time, effort and money, making it easier for you to move forward and avoid foreclosure. While some lenders have different requirements regarding document submission, the following is a simple guideline of what is required in the short sale process. Remember, this process avoids foreclosure which is a win/win for you and the bank–your credit is not destroyed for 7 years and believe me, THE BANK DOES NOT WANT TO OWN YOUR HOME!
Contact your attorney or accountant immediately
The first step in the short sale process is imperative. Perhaps your accountant can recommend revising your budget to avoid this entire process Perhaps your attorney can assist you in a negotiation with your lender to facilitate a loan modification that will allow you to stay right where you are. You will be advised as to the laws in NC regarding foreclosure, which should be avoided at ALL costs!
Contact your lender
Locating the right person responsible for handling a potential short sale at your bank can be a challenge, to say the least!.Your Realtor® will need to notify the person in charge of loss mitigation for the lender as well as finding out who is assigned to your loan. Our team of experts has contacts with nearly every bank and can easily guide you in this step of the process. Your Realtor® will notify the lender that the property is listed and astertain that you have all required paperwork for you to begin the process.
As your home is being marketed, we will continue to complete our ‘homework’
Your Realtor® will complete a preliminary HUD-1 (settlement statement) which will indicate to the bank the sales price for which you and your buyer have agreed upon, as well as all of the costs to complete the sale of the property. Your Realtor® or a short sale negotiator hired by your Realtor® and paid by your Realtor®, will negotiate the sale of your property with the bank. Your Realtor® will negotiate all fees related to the sale of your property with the lender, including real estate commissions.
Your hardship letter
You will need to compose a letter containing a complete description of the reason for hardship that brought you to this financially challenging situation. Lenders are able to forgive many circumstances which are unavoidable, including loss of job, death, medical expenses, job transfer, divorce, etc. Your Realtor® will guide you in this step of the process as well.
Your financial statement
In order to complete the short sale process, this is one of the most important aspects–your honest, forthcoming, factual financial situation. You will need disclose each and every one of your assets and liabilities. This includes savings balance(s), money market account(s), any stocks or bonds, other real estate holdings and even cash. You will need to prove to your lender that you are not able to pay back any shortfall in this transaction. NOTE: If you have filed for bankruptcy, we may be able to petition the property out of bankruptcy but, only if we can prove to the trustee that you will not gain proceeds from the sale of the property.
The Contract for the sale of your home
The lender will want a copy of the ratified Offer, meaning the Contract which both you and your buyer have agreed upon. One and only one is submitted for the lender’s approval. Your Realtor® will guide you should you receive multiple Offers on your property in which Offer to accept and that one will be presented to the lender. You may keep the other Offers as back-ups as well as any subsequent Offers made to you on the property, should your original buyer fall through for some reason.
Property valuation
The lender will order a (BPO) Broker Price Opinion to give final value to your home. The agents performing the BPO will present the current market value to the lender. Most lenders will accept 80-85% of the BPO value and approve your short sale.
Final items
Upon completion of your package, including the BPO, the lender will review your documents and, of course our goal is, final approval of your short sale. Your Realtor® will ask that the lender not report any adverse credit references to the credit reporting agencies. The lender is under no obligation to agree to this request, however a 2-year hit on your credit is FAR better than the 7-year hit that a foreclosure brings with it.
Is a short sale right for you? If you think so, give us a call for a free evaluation–we’ll share with you, our knowledge of the process and help save you from foreclosure. I you’re not sure and want further information, give us a call or email us–remember, it’s a FREE consultation!
October 6th, 2009
Short Sales: Writing the Hardship Letter
Short Sales: Writing the Hardship Letter
The #1 priority for the banks in determining whether you qualify for a short sale is the hardship letter. One thing to remember–short sales are not merely for those who simply want to ‘dump’ their property in a declining market. Do you qualify for a short sale? Are you suffering from a major financial hardship that qualifies you to pursue a short sale?
If so, your next step is to write the hardship letter to the bank. Ideally, it is best if the letter is only 1-page long–you don’t want to ramble on as the lending institutions do not have the time to read an entire ’short story’ about your hardship–nor do they want to. They prefer a straight, to-the-point explanation of the reason for your hardship and thus, your application for short sale approval.
You may ask, “Where do I begin?” Here is a list of a few components of a hardship letter that you will send to the loss mitigation department of your bank/lending institution:
*Date
*Mortgage loan number(s)
*Date you purchased the home
*The qualifying hardship
*The fact that you have listed your property for sale in MLS
*Your Realtor’s name and firm name
*Offer summary
These are the key points in writing a hardship letter to the loss mitigation specialist. You will want to be sure that you list your property with a short sale specialist in Charlotte NC so that you will know that you’re in good hands. This short sale specialist will further guide you in the writing of the hardship letter.
A Charlotte NC short sale specialist will be able to evaluate the strength of your letter and the finer points that need to be included in that letter. DO NOT WAIT–contact your short sale expert to help save your home from foreclosure!
Other articles pertaining to the short sale process:
Short Sale Prep List
So You Qualify for a Short Sale?
Short Sales in Charlotte NC–First Step: Consult a Real Estate Attorney
Foreclosure or Short Sale–What’s the Difference?
October 6th, 2009
Short Sale Prep List from Your Charlotte NC Short Sale Specialists
Short Sale Prep List (from Your Charlotte NC Short Sale Specialists)
Charlotte NC Short Sale Checklist
1. Consult your attorney or accountant FIRST. Before beginning the short sale process, this consultation is imperative. Perhaps your accountant can recommend revising your budget to avoid this process. Perhaps your attorney can assist you in a negotiation with your lender/banker to facilitate a loan modification that will allow you to stay right where you are. You will be advised as to the laws in NC regarding foreclosure, which should be avoided if at ALL possible.
2. Is your hardship letter ready? Is it accurate? Short sales are not merely for getting ‘rid’ of property that has declined in market value. Is there a true hardship that no longer allows you to be able to make payments?
3. Financials: Gather your full financial information. What you’ll need:
*Last three months of all bank statements for all parties listed on the mortgage loan documents
*Tax returns for the last two years for all parties that are listed on the mortgage loan documents
*Monthly expense report for all parties listed on the mortgage loan documents
*Last two pay stubs for all parties that are listed on the mortgage loan documents
4. Updated information: You will need to provide updated financial information & hardship status if the process is extended (with no offer or one falling through) or as the lender requests it.
5. Be prompt! When the lender/bank or your agent makes a request for documents and signatures, be prompt with your replies; this helps facilitate a smooth transaction. If we’re not prompt with providing the documents to the lender, your file will find its way back to the bottom and can seriously delay the bank/lender’s response time.
6. Continue routine maintenance: The property still belongs to you and it is your responsibility to maintain it as you always have. Moving out before closing will only make it more difficult to get the property sold. This includes maintaining the landscaping and HVAC.
7. Pricing: Your short sale specialist will recommend the method of pricing that you will need to do to get your property SOLD! The property must be priced properly or if you have a buyer and the bank rejects that amount as a result of a higher BPO, then the process will have to start all over again. Consult a short sale specialist who is knowledgeable in the short sale process–pricing being a key factor in the process.
Do you owe more on your mortgage than you home is worth?
8. The lender expects a fair priced Offer: Your property will be priced to compete with recent area sales and BPO’s so, lowball Offers will only waste everyone’s time. We must negotiate a fair price for the lender.
9. Begin working on contingency removals as soon as contract is signed by both parties: (Not after lender approval). Inspections should begin as normally performed in a standard sale.
10. Be patient: This process, affectionately known as a ‘long sale’ will require time and patience from all parties. You and your buyer must be prepared for delays and periods of ’silence’ from the lender/bank. The lenders/banks have a massive number of files on their desks and excessive demands upon them will only delay the process. Let the short sale experts handle this for you!
June 26th, 2009
Short Sale Experts In Charlotte NC
Do you owe more than your home is worth? Contact us today for a consultation.
Are You in Need of a Short Sale Expert in Charlotte NC?
With the increased need for short sale expertise in Charlotte NC, our team has made a commitment to be the market leader in the area in assisting homeowners with their short sale needs. I’d like to introduce you to Edna Wellons, our first partner to complete her CDPE (Certified Distressed Property Expert). This was not just a simple short sale course, this course required vigorous studies with an examination, making Edna Charlotte’s newest CDP Expert! Our team is committed to helping those property owners in distress, to re-negotiate their current mortgage or complete a short sale before the bank/mortgage lender forecloses upon their property.
If you’re in need of a short sale expert in Charlotte NC, give one of the Maxwell House Group partners a call today.
Charlotte NC short sales have proven difficult for many agents as they have not had a short sale transaction and do not have knowledge of the process. Our goal is to ascertain that you are walked through this process as painlessly as possible, by someone who is an expert in short sales in Charlotte NC.
If you’re in need of a short sale expert in Charlotte NC, ACT NOW–do not delay! Avoid foreclosure with an agent and a team who have your best interest in mind–give us a call today!
Typically a short sale is executed to prevent property foreclosure and the decision to proceed with a short sale is predicated by the most economic way for the bank to recover the amount owed on the property. A bank/lender will often accept a short sale if they believe that it will result in a smaller financial loss than foreclosing, as there are carrying and additional costs that are associated with a foreclosure. A bank will typically determine the amount of equity (or lack thereof), by determining the probable selling price from a Broker Price Opinion (BPO). For the homeowner the advantage is avoidance of a foreclosure on their credit history. A short sale is typically quicker and less expensive than a foreclosure.
In a nutshell, a short sale is nothing more than negotiating with lien holders, a payoff for less than what they are owed for the property. This does not mean that the bank or mortgage lender will extinguish the remaining balance unless settlement is clearly indicated at the time of acceptance of the offer.
Short sales are common in business transactions in recognition that creditors are not doing debtors a favor but, rather, engaging in a business transaction when extending credit. When it makes no business sense or is not economically feasible to retain that asset, businesses default on their loans. This principle, now being practiced with individual property mortgages, is what is known as a short sale.
I can’t express strongly enough that if you’re in need of a short sale expert in Charlotte NC, ACT NOW–do not delay!
