How do you ensure a successful Charlotte short sale? Follow these four tips so your Charlotte short sale will sell in no time:
1. Work with an experienced Charlotte short sale agent.
Just as you wouldn’t put your life in the hands of a first-time surgeon, you shouldn’t also hire an inexperienced agent to sell you Charlotte short sale. Ask the agent how many short sales they have closed. Classes and certifications are not enough in handling the complicated process of short sales. An agent needs experience in selling, negotiating, and closing short sales for your own deal to be successful.
2. Understand the risks and consequences.
Don’t fall into the trap of being too anxious to walk away from your mortgage payments that you don’t think about what the consequences of a short sale are. Laws differ with every state and some states allow lenders to go after the balance left on the loan of a short sale, or deficiency, once a short sale deal is closed. If this is the case, the borrower should find out if the lender will agree to waive the deficiency. This needs to be clearly discussed with the lender and formally documented so the borrower wouldn’t get any surprises after the Charlotte short sale. One way to avoid a deficiency judgment is to do the Charlotte short sale through the HAFA program. Lenders who approve Charlotte short sales through the HAFA program are required to release the borrower from any deficiencies. But take note that lenders are not required to approve short sales done through HAFA.
3. Negotiate your way out of a deficiency judgment.
In case the lender runs releases a deficiency judgment and asks you to pay for the shorted difference, you can negotiate for them to waiver. Lenders seldom refuse to negotiate a settlement. Some lenders may ask the borrower to sign a promissory note to pay at least a minimum amount of the balance. There is a cost for asking for a deficiency to be waived but it is usually very small. An experienced Charlotte short sale agent can help you in negotiating with the bank and advise you what to expect. If you don’t understand the contract or the potential consequences of a Charlotte short sale, consult a real estate lawyer.
4. Pay HOA fees on time.
Even if you are planning to do a Charlotte short sale, you still have to be current in paying your HOA dues. Unpaid HOA fees can be a deal-breaker. In a traditional sale, the seller or the bank pays any past dues to the HOA at closing so the buyer can get a clear title of the home. Paying HOA fees also ensures that your home will be maintained, your grass will be cut, and the power will be on. You don’t want your Charlotte short sale home to look like an abandoned foreclosure.