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A Few Definitions Related to NC Short Sales

REO (Real Estate Owned): This is what property is called once it is taken back by the bank and placed into their inventory.

Foreclosure: The legal process by which the lender forces the sale of a property because the borrower has not met the mortgage terms.

Pre-Foreclosure Sale (PFS) / Short Sale: When a property is sold and the lender(s) agree to accept a discounted payoff, releasing the lien that is secured by the property.

Loss Mitigation: A department set by a lending institution set up to avoid foreclosure; the lender tries to help a borrower who has been unable to make loan payments and is in danger of defaulting on his loan.

Why Are Properties Foreclosed On?

Job Loss: Due to economic conditions, employers are having to release great employees because of many factors. These employees may not have the financial reserves to withstand many months of not receiving a paycheck. Some of these employees are finding new work, but at a lower pay rate than what they have received in the recent past.

Divorce

Health: People fall ill and they make the decision to pay doctor's bills in lieu of the mortgage.

Adjustable Rate Mortgages (ARM's): These are those loans that reset (the interest rate adjusts typically higher) and drive the monthly debt payments up.

Do I qualify for a short sale in NC?

• Are you behind on your mortgage or facing default or foreclosure?
• Are you in a financial hardship of any kind?  This can include, but is not limited to, relocation, loss of income or job, divorce, illness or death in the family, house in need of major repairs, increased bills or expenses?
• Has your mortgage payment depleted your savings?
• Are you in a situation where you MUST have your home sold?
• Can you not sell your home due to a mortgage balance greater than your property value?

If you answered 'yes' to any of the above questions, then you may qualify for short sales.

Does a short sale cost me anything?
Nope!  Your lender will pay all NC Realtor's fees as well as the closing costs (excluding any past due HOA dues)
 
If we do a short sale, will the lender expect me to pay the amount that they lost in the transaction?
Usually, no.  Our Realtors in NC will work to secure a full release for you at closing.  Some lenders will request an unsecured loan be taken back, but the majority are forgiven in full.

Doesn't a short sale take a lot of work?
It will not take very much work at all for you.  We will ask you to gather certain financial information and forms, and our real estate agents will handle the negotiations and details with your lender as well as the process involved in selling your home.

How do I benefit from short sales in North Carolina?

A short sale helps to relieve the stress of being in foreclosure.  You can get rid of your mortgage payment and move on with your life while ending the harassment from your lender.  The homeowners that are helped are tremendously thankful to be relieved of the burden the foreclosure has caused.  A short sale also prevents additional damage to your credit.  Some late payments have already done some damage to your credit; however, a foreclosure will do much more damage and lower your credit score even more.  Also, it is important to note that we provide our short sale service at absolutely no cost to you.

I Am Thinking About Applying for a Short Sale in NC....What Should I Do?

1. If you are 31 days or more past the due date of your loan, and your property is located in North Carolina, Contact Us Today!  We know that this is a trying time for you, and you really don't want to deal with it.  Perhaps you are embarrassed, or just 'hope' that these problems will pass - but unless you do something about them, they won't.  Depending upon your situation and your lender, we may be able to sell your home even though you owe more than it is worth.  You may even be eligible to receive money back at closing!
2. Once you have initiated contact with us, we will 'qualify' you and your property to determine if your property is a good candidate for the short sale process.
3. Once it has been determined that your property is a good candidate, we will perform a Comparative Market Analysis (CMA) to determine our best opinion as to what your property will sell for in the 'retail arena'.  You will then sign the paperwork agreeing to have Champion Realty represent you in this transaction.  We will aggressively market your property - initially to investors with whom we have relationships with - and then to other buyers.
4. Once an offer has been received, we will begin our negotiating process with your lender(s).  We will handle this process for you...taking that additional burden off your shoulders.
5. Once the lender has accepted the offer, we handle your process all the way through closing...keeping you in 'the loop' throughout the entire process.

For more information on this process, visit our blog at Short Sales in NC