Short Sales Real Estate
Wilmington, NC is a wonderful place to live and raise a family. While the Carolina’s have long been a great place to settle, some people need a great house without paying a fortune.
Driving around the neighborhoods of Wilmington, you will see many homes sitting empty and some with signs for a short sale in the yard.
Why Homeowners Sell through a Short Sale
It is no secret that foreclosures are striking record levels in most areas of the country and Wilmington has been hit. Many homeowners do not want the embarrassment and marks on their credit report from a foreclosure, so they opt to make a deal with the bank to get out of their mortgage unscathed.
Banks will allow some buyers to get out of their mortgage by doing a short sale. A short sale happens when the homeowner sells their home for less than what is owed, usually at market value.
This arrangement works for both buyer and seller. The buyer gets a home that is usually worth way more for a great price. The seller gets out of the mortgage and does not have to repay the negative equity and the amount that cannot be collected on the home.
The lender’s will forgive the balance due on the loan once the home sells and the seller can move on without fear of a deficiency lawsuit. It also is beneficial for the banks.
The Short Sale Process
The short sale requires more paperwork than the regular home purchase, but something’s are worth the extra effort. While the buyer is getting a great deal, usually these properties will have a few things that need done, as most are neglected.
The waiting period is something that often gets people the most with a short sale. The bank does not have to accept your offer and in fact, they can take their time giving you an answer. If the home is a hot property in Wilmington, then several buyers can bid at once. It is common for short sales to get into bidding wars in popular neighborhoods.
The banks have hundreds of homes that are close to foreclosure in the Wilmington area. Each home that goes up on the auction block has costs associated. First, the bank must secure the property and make sure it is locked, etc.
They must change the locks and they must obtain legal counsel to secure the home and go after the seller. Usually going after the seller is unnecessary because if they do not have the money to pay for the home, they will not have money to pay back the bank.
Why Purchase A Short Sale Property?
While there are some shortcomings to dealing with short sales, the advantages far outweigh the disadvantages. After all, most people have a budget and with a short sale, it is usually allows them to get more of a home for less.
Short sales are a great way for first time home buyers to become homeowners. Numerous short sale properties all over the city are just waiting for families. Armed with a good Realtor, it is possible to get an amazing property for less.