Talk to any real estate agent or broker about Charlotte foreclosures for sale and you are bound to hear short sales come up quite often. Just what are short sales and why are these properties figuring in conversations frequently. Simply put short sales are properties where the mortgage defaulting owner approaches their lender to request that they be allowed to sell the property at a price that is lower than the remaining portion of their loan.
Most home owners finding themselves in a financial bind and unable to service their debt opt to go this route in order to prevent getting foreclosed on. This is actually a good situation for the home owner-seller because a foreclosure on their record could actually decimate their credit reputation and makes it very difficult to take out any loan in the future. On the other hand, buyers seeking out Charlotte foreclosures for sale will do well considering short sales which are guaranteed to sell at a price that is significantly lower than the real value of the home.
Do Not Throw Caution to the Wind
Some level of caution should be taken when dealing in short sales. A buyer should always coordinate not only with the direct seller of the property but more importantly the provider of the loan. Some buyers rush to sign a check for the low-cost property only to discover that the deal was not authorized by the lending company.
Mortgage providers considering a home owner's request for a short sale will only approve if they are satisfied that the borrower has absolutely no more equity that they can recover. It is generally safer to deal directly with the financial institution or at least clear all payments made to the home owner with the lending company. Some home owners may try to take advantage of a buyer's inexperience by asking for a down payment or a good faith deposit without the mortgage provider's knowledge.
Short sales is no doubt one of the best forms of Charlotte foreclosures for sale. But especially for new buyers, the services of a licensed real estate broker and agent may be invaluable in ensuring you are entering a good and clean deal.