There are many great deals in Charlotte Real Estate in foreclosures and short sales. Which is a better opportunity? Charlotte foreclosures are a great deal. You do have the "negative energy" of the previous home owner which is a reality of distressed sales. What is commonly referred to as Charlotte Foreclosures are actually Bank Owned Homes. The foreclosure is actually the process in which a lender gets possession of a home when the current owner is in default.
A Charlotte Bank Owned home allows you to take possession of the home that is empty and ready for a new family to enjoy. These homes can typically close within 30 days. Many foreclosures will not qualify for FHA financing and banks will not make any repairs. Why not? Banks are in the business of lending money. A foreclosure home is "bad debt" and the bank needs to liquidate this debt. The bank needs to get the most possible for their "bad debts" but they are still discounted off of current market value. There are unfortunate situations that occur but that is ultimately part of life. We, as US citizens, are resilient and each foreclosure purchase is a step to healing our economy!
Short Sales are homes for sale when the seller owes more than the current market value. The lender must agree to accept the shortage for the decreased market value. This is a much harder process than it may appear. There are Investors that must accept the losses. The investors must volunteer to take less money. This is often very complicated to determine which investors are holding the investment/mortgage and then convince them that the Short Sale is better than a foreclosure.
A typical short sale will take 4 months or greater just to hear if the Lender/Investor will accept, reject or counter your offer. This means you, the buyer, must wait for 4 months without an answer. No one wants to wait 4 months without an answer. There are other opportunities and it is very difficult to ignore other opportunities while waiting for months.
Based on my experience, the only time you should consider a short sale is "if" you absolutely love the home. If you do not love the home, you will find a better deal before the lender considers your offer. It is an unfortunate reality in the world and the Short Sale is a very unpractical decision. It is better for the bank to go forward with the foreclosure process and clear the bad debt. This is what we need for our national economy. It does not make sense for a lender, a professional in lending and handling money, to have such a program. Hmm? Kind of makes you wonder why. . .
Visit Charlotte Real Estate to learn about Charlotte Homes for Sale, Charlotte Foreclosures and so much more.
