I have been getting a lot of calls lately from buyers that are looking for "short sales" because they want to purchase a good deal and also help out someone in need. I think it's a great idea but first, there are some things to know about getting into this process with your agent.
**Most important thing to know in a short sale! The bank makes the ultimate decision on the offer. Sometimes this process can take a long time (weeks or more!). Especially if one loss mitigation manager of the bank is working on hundreds of properties in the US. Can you imagine hundreds of files on someone's desk?
Short Sales in North Carolina A short sale in North Carolina usually involves the bank allowing the sale of your home for less than the mortgage balance that is owed on it. In doesn't exactly always happen in this order, but this is how it usually happens:
A seller gets into trouble with payments (usually while trying to sell the property with an agent), seller calls the bank, the bank and seller both get "Broker Price Opinions" on the property, if not already on market, seller then places it on the market and waits for an offer to come in. When the market value of the property is less than the loan amount owed on the property, sometimes the seller and the bank can work together to get the property under contract and sold quickly for less than the amount owed plus fees. We call this a "Rework" "Workout" on your loan. The loss mitigation department of the bank makes the decision whether or not to take the lesser amount in the sale to avoid a costly and time consuming foreclosure process on the seller. After the sale, sometimes the bank qualifies the short sale as a "paid in full" on the debt, and sometimes they leave a deficiency balance (balance of mortgage) on the borrower's credit.
(Foreclosed home in Kannapolis - Bank owned)
I wish more sellers would call their banks for help in advance before things get out of hand, and I also wish more banks would give sellers a little more leeway to avoid the foreclosure process and offer short sale workouts.
Not all banks are willing to do short sales. I currently have a seller right now that explained to me that the bank is unwilling to do any kind of rework over 10% of the balance, however the current market value of the property is down 16%+.
If you have questions about a short sale, or if you are a seller that is considering this option, please contact your agent and let them know of your plans. Nothing is harder on an agent than being kept in the dark. The agent can HELP you! Your agent or broker can take some of the pressure off you by talking to the loss mitigation department and handling the paperwork with you. Don't do this alone. I know some folks feel it's embarrassing, but asking for help early may save your credit in the future and keep you from major financial troubles down the road!
I can help! Call me if you need me! Sandy Aichner, Broker (704) 746-7513
Sandy Aichner, GRI, ABR, Broker,REALTOR
RE/MAX Executive Realty
(704) 746-7513
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Sandy McAlpine, GRI, ABR, CDPE, SFR Broker,REALTOR Licensed in NC and SC
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I can also assist buyers and sellers in Short Sales and Foreclosure sales and purchases.
Please call me If you have interest in purchasing or selling a home in Mooresville, Cornelius, Huntersville, Troutman, Denver, Sherrill's Ford, Catawba, Davidson, or Statesville, North Carolina!
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Copyright 2008-2009, ALL RIGHTS RESERVED, by the Author - Sandy Aichner
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