As a Real Estate Professional and native of New Bern NC, I get asked many questions regarding our local market. Our market is doing very well! Our inventory is reducing and the prices are stable! One of the most frequently asked questions I receive is about short sales! I consider myself a SHORT SALE expert. I have listed and sold many short sale homes in the New Bern, NC area. Most people have heard of short sales but are not real sure what a short sale property is.
As defined, a short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property and the property owner cannot afford to repay the liens' full amounts, whereby the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt. Any unpaid balance owed to the creditors is known as a deficiency. Short sale agreements do not necessarily release borrowers from their obligations to repay any deficiencies of the loans, unless specifically agreed to between the parties. A short sale is often used as an alternative to foreclosure because it mitigates additional fees and costs to both the creditor and borrower. While credit is also typically damaged much less than from a foreclosure, both often result in a negative credit report against the property owner.
You may ask, why should I short sale my home? You win by getting out of a financial predicament a clean transaction and a salvaged credit score. Your property is saved from foreclosure, thus helping you to save your credit rating. Allowing your home to proceed into foreclosure may adversely affect your credit for up to 7 years. Although your credit rating is affected by short sale, it is generally just a couple of years. The lender avoids timely and costly foreclosure proceedings which could lead to an even more costly expense of ownership of the real estate by the by the bank. The buyer of your property wins by getting the property at a good market value.
I have worked with Bank of America and Wells Fargo and have contacts with both companies. Shorts sales were initially a nightmare to pull together but with recent changes, better understanding of the process, and a Real Estate short sales professional, short sales are literally "short sales"! Call me if you are looking to purchase a short sale property or if you are considering selling your home as a short sale! I am your short sale expert!
Martha Hudson Cook
2009 Neuse River Region REALTOR of the Year
Coldwell Banker Willis Smith Company
115 Middle Street
New Bern, NC 28563