What is a short sale? A short sale is an option you have before you reach the point of foreclosure where you are selling your home for less than what is owed. However, the bank has to agree to a short sale as they stand to lose money via either process.  Banks do short sales because of cost.  An average cost to the bank for foreclosure is around $65,000, so they are smart to take the short sale.

You must have an offer in hand for the bank to tell you whether they will do a short sale or not.  They have the say-so whether or not a short sale will be accepted.

The 4 requirements to have a short sale are:

1. The home’s market value has dropped.
2. Mortgage is in or near default status.
3. The seller has fallen on hard times . . . unemployment, divorce, medical emergency, bankruptcy, death
4. The seller has no assets to speak of.

Foreclosure is on your FICO score for 6 years.  Short sales start to repair themselves after 2 years.

Short sales can be a win-win for the lender and the seller.  The lender recovers more of their capital faster than would be possible if they went through foreclosure.  The owner wins by relieving themselves of the financial burdens of the home and taking a smaller hit to their credit than would happen if a foreclosure occurred.

Unfortunately it’s not as simple as it appears.  Every lender and every situation is different.  There are pitfalls to be avoided and terms to be negotiated to reduce or eliminate any further obligations for the borrower after the short sale is concluded.  It is critical to have a team of experts in place to guide you through the process.  A seasoned real estate Broker and a real estate Attorney who specializes in such transactions are the backbone of such a team.

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Charlotte Commuting Time Estimator

The snow was falling early this morning

Yes it does snow in Charlotte!  Proof is in the pictures I took this morning as the flakes were falling in Southeast Charlotte, cancelling school and causing many to stay home from work. Many who didn’t grow up in this area like to laugh at Southerners who appear to panic at the first flake and stay home as long as anything white remains on the ground - but their feelings are justified as more often than not, snow in Charlotte comes with ice in Charlotte.  Driving on ice is NOT the same as driving on snow.

Regardless, it’s the perfect combination for all – the snow is pretty, kids get a day off from school, and then within a day or two it’s all gone and we’re back to dry streets and yards.  No slush or dirty roads to deal with.  What more could you ask for?

These pictures were taken this morning from my house.  As of 11am, it is still coming down, although tapering off.  I’m sure that by later today things will calm down and we’ll be back to normal.

So don’t laugh at us – if you can’t beat ‘em, join ‘em!  Take the day off and find a nearby hill and have fun with the kids.  We don’t get too many chances to enjoy this!

Snow was clinging to the trees

What’s it going to take to turn the housing market around?  We have to believe that it will turn around and how soon depends on you!

Day in and day out I continue to hear how bad it is.  I’m just tired of it.  People still need housing and why not purchase your own home.  Renting is a waste of time and resources.  Interest rates are low, but not at an all time low.  In most cases it is still a buyers market.

The only way that our economy will turn around is we have to invest in it and spend money.  Look – life is a risk.   So help yourself and others by going out to eat, taking that vacation, buying a new car or even purchasing a new home.   

At our Realtor® seminars this fall, I promised to share the updated Case Shiller numbers which came out last week, for data through August.

Way to go Charlotte! We are 2nd from the lowest in price decline, reporting an overall 2.8% decline during the past 12 months. Dallas, at 2.7%, was the lowest; with Phoenix the highest at a 30.7% decline.

Here is the updated Case Shiller report.

We’ve been delighted to meet with many firms this fall to provide an update on home design trends we’ve found across the country and what is asked for by our buyers. Additionally, we have an update on the overall Charlotte real estate market and tools to assist your resale buyers and new home buyers. I’m delighted with the feedback from many Realtors that these tools are being used to help make sales! Great news!

The seller, a house painter, knows more about selling their home than that of an experienced professional. OF COURSE HE DOES BECAUSE SELLERS KNOW IT ALL! Lets assume that their carrying cost for their mortgage is a mere $1500 per month. That equates to $54,000 of payments for this period vs. taking the offer that was $30,000 less than the asking price.

Here are some things to remember:

1.  Real Estate is no longer recession proof.

2.  Greed, not intelligence, is often the factor for loosing a qualified buyer.

3.  Good realtors® fire their sellers when they don’t listen to them.

4.  The seller may set the asking price but the MARKET SETS THE VALUE.  This one bears repeating – the seller may set the asking price, but the market sets the value!

I’d like to hear your opinion on this or any related topic.