Distressed Properties in Charlotte NC
Many Charlotte NC real estate buyer requests that we receive are pertaining to distressed properties. We're happy to assist you in your search for distressed homes for sale in Charlotte but, before we search, here's a quick definition of each type of distressed property which you may come across during your search.
What is a Short Sale?
Much has been written about short sales in Charlotte NC. In short, the definition of a short sale is when a homeowner cannot afford to make the mortgage payment and does not have sufficient proceeds to pay off the mortgage(s), it then becomes necessary to have the bank involved as a third party in the sale of the property. In order for the sale of the home to occur, the bank either has to forgive a portion of the debt or allow the seller to convert the amount of the default into a personal loan to be paid off after the sale of the home. Search short sales in Charlotte NC
What is a Foreclosure?
A foreclosure occurs when a lender pursues its lien on a property. Foreclosure action typically begins after 90 days of nonpayment but, recently we have seen the process take a bit longer, partially because of the vast number of homeowners who are delinquent on their mortgages. Bidding on the property takes place as part of the foreclosure sale. The Title will then be transferred to the successful bidder, subject to any applicable redemption period.
What is a Bank Owned Property or an REO?
When a property is bank owned, this most often refers to homes that have been 'repossessed' during the foreclosure process, having not sold to another party at the foreclosure auction. These bank owned homes are also referred to as REOs, meaning the property is "Real Estate Owned". Search bank owned homes for sale in Charlotte NC