Short Sale Q & A - What are the Pros and Cons of Short Sales

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Real Estate Broker with www.AtHomesCharlotte.com | Savvy + Company Real Estate 228209

Short Sales in Charlotte NCShort Sale Q & A - What are the Pros and Cons of Short Sales


Q -  What are the pros and cons of a short sale ?


A -  A short sale occurs when your lender agrees to accept less than the balance remaining on your home.  It is a way for you, as a seller, to avoid foreclosure and sell your home.


For those who owe more on their home than it’s worth, it sounds like a great way to avoid foreclosure but, that doesn’t mean it is right for everyone.  Should you consider a short sale on your home? 
My first advice is to consult either a tax attorney or your CPA as well as a real estate attorney who specializes in handling distressed properties.  There are pros and cons to doing a short sale; with regards to your options, consult a real estate agent who specializes in short sales.

Pros to doing a short sale:

Short Sales in Charlotte NC•    You will be able to sell your property, get out from under a mortgage you cannot afford and lower your debt.
•    You are still able to sell your property in a declining real estate market, even if you owe more than your home is worth.
•    Buyers who couldn’t previously afford a home in a popular market area, may now be able to buy a home at market value in that area.
•    While a short sale isn't always an ideal situation, it is typically better than a foreclosure, which stays on your credit report for 7 - 10 years.
•    If your home does into foreclosure and is sold at auction for less than the mortgage, you can still be held responsible for making up the difference.

Cons to doing a short sale:

•    Your lender may refuse to do the short sale, or they may still hold you responsible for the remaining debt.
•    The bank’s loss is considered taxable income for you, and you may have to pay taxes on that amount.
•    Short sales do stay on your credit report for approximately two years and may make it difficult for you to a get loan in the near future.
•    You may have to find a real estate agent willing to work with short sales.
•    Short sales take longer to close than traditional home sales.

Our short sale team can review your options with you in order to help you decide if a short sale on your Charlotte NC home is right for you. Call today - (704)491-3310 or email Debe@DebeMaxwell.com to discuss your options.

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Re-Bloggged 4 times:

Re-Blogged By Re-Blogged At
  1. Agent Aaron Vaughn, REALTOR® Listing Specialist 05/24/2010 04:02 AM
  2. Gabe Sanders 05/24/2010 07:06 AM
  3. Maria Mastrolonardo 05/28/2010 01:55 PM
  4. Kathryn Maguire 05/31/2010 09:32 AM
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Topic:
Lending / Financial
Location:
North Carolina Mecklenburg County Charlotte
Groups:
Charlotte North Carolina Area
North Carolina Real Estate
Posts to Localism
Short Sales and Forclosures ONLY
Short Sales Pre Foreclosures Bankruptcy and More!
Tags:
short sales in charlotte nc
short sale tips
charlotte nc short sale experts

Comments 17 New Comment

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Rainmaker
417,176
Marcy Moyer
CDPE
Keller Williams Realty Palo Alto Probate & Trust Specialist

Debe,

VEry clear and to the point article. I am frequently asked by sellers why would a short sale be better and while each case is different, it appears that short sales will be a bad credit hit for fewer years than foreclosures.

Marcy

May 30, 2010 11:27 PM
Ambassador
1,516,891
Christine Donovan
Broker/Attorney 800-610-7253 DRE01267479 - Costa M
Donovan Blatt Realty
Debe - This is well done and gives people a basic understanding about the pluses and minuses of short sales.
May 31, 2010 01:06 AM
Rainmaker
276,790
Kathryn Maguire
Serving Chesapeake, Norfolk, VA Beach
GreatNorfolkHomes.com (757) 560-0881

Hi Debe, in Virginia, we have a form for sellers that are subject to a short sale that explains the pros and cons.  However, it was designed by attorneys.  Yours is shorter and much more elegant.  And readable.  Thanks for a great post.  Hope you don't mind if I reblog this one!

May 31, 2010 09:31 AM
Rainer
70,388
Lori Liveston
Virtual Homes, Real Estate

Great post Debe.  Short sales can be a great alternative to foreclosures but sellers need to be aware of the cons as you have pointed out.

June 01, 2010 09:52 PM
Rainmaker
307,518
Susan Brown
Keller Williams NE, Kingwood Texas (Humble & Atascocita too)

Debe - Great list of pros & cons on Short Sales.  When homeowners find themselves in uncharted waters it is great to get a lifeline like your list!

June 02, 2010 12:34 PM
Anonymous
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Debe Maxwell

Charlotte Homes for Sale - Charlotte Neighborhoods
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Additional Information

Author Bio: Debe Maxwell is a Certified Residential Specialist in the Charlotte Metro region with a focus on the Charlotte luxury home market. My team of agents each have their own specialty areas, a benefit to anyone buying a home in Charlotte NC.

 

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