A short sale is a real estate sale in which the sale proceeds fall short of the balance owed on the loan. A short sale does not always indicate the homeowner is in trouble, it can occur if the market or area where a home is located has decreased in value beyond what is owed on the mortgage. If the seller must bring money to closing to sell her home, this is a short sale.
Short sales in cases of financial hardship are very involved. The seller places his home on the market, a buyer offers to purchase the home, the seller approves of the offer, and then the bank reviews the offer. Because the bank will receive funds short of what is owed on the mortgage note, the bank must approve of the short sale.
In Charlotte many short sales are handled by REALTORS with the SFR (Short sale and Foreclosure Resource) designation. The SFR designation identifies a REALTOR who understands how to direct distressed sellers to finance, tax, and legal professionals, qualify sellers for short sales, develop a short-sale package, negotiate with lenders and protect buyers interested in purchasing a short sale.
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