Charlotte Short Sale vs. Charlotte Deed in Lieu of Foreclosure - Which is better? Short Sale or Deed in Lieu of Foreclosure?
Many property owners in Charlotte NC are facing foreclosure and don't know if they should choose a Charlotte Short Sale vs. Charlotte Deed in Lieu of Foreclosure. A Charlotte short sale, also called a pre-foreclosure sale, takes place when a property is sold for less than is owed on the mortgage or loan. A Charlotte Deed in Lieu of Foreclosure occurs when you sign over your home to the lender or mortgage company in return for them cancelling your mortgage. Both a short sale and Deed in Lieu of foreclosure can be a great way to avoid foreclosure.
Click the following link for information regarding a Charlotte Short Sale vs. Charlotte Foreclosure.
Advantages of Charlotte Short Sale vs. Charlotte Deed in Lieu of Foreclosure - Benefits of a Short Sale versus Deed in Lieu of Foreclosure
- A Charlotte short sale is often successful on a home that has one, two, or three mortgages - versus - a Charlotte deed in lieu of foreclosure typically only works when there is one mortgage.
- Some lenders are more likely to accept a Charlotte short sale because the lender does not take possession of the title (a third party buyer takes possession) - versus - lenders are less likely to accept a Charlotte deed in lieu of foreclosure because the lender takes possession of the title. Many lenders do not want these properties sitting on their books.
- A homeowner is eligible to receive a new loan after 2 years of a Charlotte short sale - versus - a homeowner might have to wait 5 years to receive a new loan after a Charlotte deed in lieu of foreclosure.
- A Charlotte short sale is reported on your credit history as "settled for amount less than owed" and only late payments on your mortgage will affect your credit score - versus - a Charlotte deed in lieu of foreclosure is reported on your credit history as a "foreclosure" and will result in a very large reduction in your credit score (probably 250-300 points).
- With a Charlotte Short Sale it is normally possible to negotiate with the lender to not go after the deficiency judgement - versus - with a Charlotte deed in lieu of foreclosure the lender almost always goes after the deficiency judgement.
If you need any help negotiating short sales, please give me a call. We run a negotiation firm that handles these for agents in the Charlotte area, and are having a lot of luck with it. We are currently averaging around 45 day for approval and will handle all of the negotiations and follow-up. No upfront fee, just a 1% referral fee on the deal. Most agents split it up between both sides, so it's only a 1/2% a piece and it will take the entire headache off your plate. Just an option for your listings. Give me a call if you would like to discuss. 980-722-6192
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