Townhome and Condo short sales in the Lake Norman to Uptown Charlotte area.
A short sale is an "arrangement" between the current owner of a home and the bank that lent them the money to buy their home to accept an offer for less than the total amount owed to pay off the home. The "deficiency" is the difference between the amount owed and what the bank collects at the short sale.
Although, the "arrangement" can take many different forms, there is no oth
er definition of a short sale. I say this because many realtors and some investors simply throw the term around as if it meant "a sale under market value." No. A bank owned (foreclosed) house is not a short sale. A seller deciding to lower their price and take less profit is not a short sale. An old lady that owns her home free and clear, selling a $150k home for $75k, IS NOT A SHORT SALE. For it to be a Short Sale, someone must be getting "shorted." Either the seller, or the bank.
The beauty of short sales is that they can be a win-win-win situation for seller, buyer and lender. Here's how:
The seller gets out of the mortgage liability without facing bankruptcy. The buyer gets the home at a reduced price.The lender agrees to a loss it considers minimal without going through a foreclosure and being saddled with an unsalable property. While it may seem surprising that lenders would agree to accept less than what they are owed, they benefit from the process, too.
"The lender benefits by not having to go through the protracted process of foreclosing on the borrower and then having to put the property on the market and go through the whole marketing process
," says Stuart Wilson, a real-estate agent with Paragon Real Estate in San Francisco.
