Monday, March 14, 2011

Short Sales Becoming A Cheaper Alternative To Foreclosures

CHARLOTTE, N.C. - Home sellers that are unable to get buyers to jump back into this uncertain real estate market are starting to find an alternative to having the bank foreclose on their home when they fall on financial hard times. Short selling is becoming a much more recognized and viable way of selling and purchasing a home. "To the bank's benefit," said Nancy Braun, owner and broker with Showcase Realty, "it's typically, historically, they will lose less money in a short sale scenario then they will in a foreclosure."
With a short sale the home owner sells below what they owe the bank. But the home owner first has to show some kind of financial hardship. "It can range from a job loss... to medical expenses," said Braun. The seller agent will then demonstrate to the bank that despite all marketing attempts, open houses and lowering the sale price over time, potential home buyers remain uninterested. "The seller's agent will present this documentation to the bank to approve a short sale." And for potential buyers, it could be a way to find a good deal in this market. "Unfortunately you're taking advantage of someone else's bad situation," said Andrea Cloninger, "taking advantage of possibly getting a home for less than what you would normally pay for it."
The Cloningers are in the process of moving out of Mecklenberg County because of its high property taxes. "We just got the new tax appraisal on our homes and we live in Charlotte so we were thinking about moving out of the city, and to a place with less taxes." As Andrea and her husband Mark shop for a bigger family home, they're looking at foreclosures and short sales as a way to find a bargain price. "We're sort of just learning but you have to take baby steps, just get out and see what is available and what things are going for in that kind of a market."

No comments:

Post a Comment