Carolina Homes 4 Sale - Professional Real Estate Representation in the Charlotte, NC Area.

Considering a Shortsale

The short answer to this question is that a Short Sale is when a lender agrees to accept a discount on a mortgage in an effort to avoid the foreclosure, bankruptcy and/or auction processes. When the lender or bank agrees to this type of a sale a buyer is then buying the property from the lender at a discount rather than a typical seller.


A Short Sale is a great alternative to foreclosure and is a way for homeowners to sell the property when the value of the home is less than what they owe. Over the course of the last several years the option for a Short Sale has become more and more acceptable to lenders and banks and often times allow for more flexibility when it comes to buyer negotiations.


A more “Official” definition from the CDPE website:


A homeowner is ‘short’ when the amount owed on his/her property is higher than current market value.


A short sale occurs when a negotiation is entered into with the homeowner’s mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then ‘sold short’ of the total value of the mortgage.


For homeowners to qualify for a short sale, they must fall into any or all of the following circumstances:


Financial Hardship – There is a situation causing you to have trouble affording your mortgage.

Monthly Income Shortfall – In other words: “You have more month than money.” A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.

Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

Why would a lender or bank sell my property for a discount?


Lenders and Banks do not like having disrupted loans on their books or having large amounts of inventory to release to auction or otherwise. During a foreclosure often times bank owned properties go to a real estate auction where the property may inevitably sell for much less than what is left on the mortgage and will be at a even larger loss than if they were to allow a Short Sale. By doing a Short Sale, lenders and banks can get as close as possible to the loan amount in an effort to minimize their loss.


My house needs a lot of work, the lender surely won’t do a Short Sale.

This is not the case. Banks and lenders accept all types of properties in all types of conditions for a Short Sale. Often times the homes that need the most work are accepted faster than others. The reason for this is that they stand to have significant loss on “fixer-uppers” at an auction and want to get as much back as they can to cover as much of the outstanding loan as possible.


Who would help me with doing a Short Sale on my home? Who is qualified for that type of work?

The short answer is, myself. Tim Brown. I have a specialized certification that tells the homeowner that I am an expert in this field and in dealing with lenders and banks on Short Sale properties. The real estate designation called CDPE or Certified Distressed Property Expert is a designation held by only 5% of agents.


Charlotte, NC CDPE REALTOR for Short Sale


From CDPE Site:

When your roofing needs to be replaced, you consult a roofing expert. When there’s a problem with your computer, you consult a technician who understands the issues of your particular model. And when a loved one becomes sick, you seek answers from medical professionals specifically trained in that particular illness. Similarly, in this current economic crisis, millions of homeowners facing financial hardship and possible foreclosure action are requesting the help of agents with the Certified Distressed Property Expert® (CDPE) designation. A CDPE is a real estate professional with specific understanding of the complex issues that confront homeowners in distress. Through comprehensive training and market experience, CDPEs are able to provide real solutions for homeowners facing hardships in today’s market.


The prospect of foreclosure can be financially and emotionally devastating, and often homeowners proceed without guidance of any kind. CDPEs believe that in almost all cases, the best course of action for a homeowner in distress is to speak with a well-informed, licensed real estate professional. They have the tools necessary to help homeowners find the best solution for their particular situation. While enduring financial difficulties are challenging for any family, the process of finding a qualified real estate professional should not be. Tim Brown has achieved the CDPE designation, ensuring you deal with a professional trained to address your specific needs. CDPEs don’t merely assist in selling properties, they serve and help save their clients in need.


For more information, visit my CDPE site HERE


In the News:

(CDPE Site) On January 1, 2013, Congress passed an extension of the Mortgage Forgiveness Debt Relief Act. The extension of this act, which has saved homeowners more than $1 billion dollars in taxes, is great news for struggling homeowners nationwide.

For another year, distressed homeowners can pursue foreclosure alternatives, such as loan modifications and short sales, without paying potentially thousands of dollars in taxes on forgiven mortgage debt.


Additional Resources:

Download a FREE copy of “Attention: Distressed Homeowners! Congress Renews Critical Homeowner Relief Program!” by clicking HERE


Take a look at some Government Solutions and Programs that may help you by clicking HERE


Get a FREE Report by clicking HERE


Visit my CDPE – Certified Distressed Property Expert dedicated website by clicking HERE

Direct: 704-619-1008

Client Care: (704) 815-3208

Fax: 704-220-0698

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