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Charleston Real Estate Law Blog

Short sales are not always the best choice for buyers

A short sale can save you a lot of trouble if you're behind on your mortgage and need to make a sale, but as a buyer, a short sale has the potential to cause you trouble. Short-sale buyers might get a good deal, but in reality, most don't. It's typical for a short-sale property to actually be less valuable than another home on the market, primarily because the mortgage holder will want to see the home purchased for current market rates. That leaves little room for profit if the buyer wants to sell the home later.

Short sales aren't discounts. If you're interested in properties that are deeply discounted, then a foreclosure may be a better option. A short-sale property is typically sold at the current market value, and it could potentially be sold for more than the current market value.

There are good alternatives to foreclosure available

There are many alternatives to foreclosure that you can consider before you decide if a foreclosure is right for you. In some cases, the alternatives can help you save your home or protect your credit score.

Not all alternatives are right for every circumstance, which is why it's a good idea to talk to your attorney about the options that are available. For some people, a foreclosure can be a good choice, but for others, these alternatives are a way out of debt that doesn't have as dire of consequences.

Short sales: These disadvantages can weigh a sale down

While there may be some advantages to buying a short sale, there are definitely disadvantages to doing so as well. Short sales can save you money, but the process is long and can be drawn out for many months.

If you're planning to purchase a short sale as an investment property or would like to buy a fairly priced home of your own through the short-sale process, here are a few things to know.

What's a common foreclosure scam?

You have been having problems paying your mortgage on time, but most of the time, you've been able to catch up before 30 days have passed. You decide to sell your home, because the hassle of making payments in the amount you owe is just too much to handle. It seems like a good idea to get out of the mortgage while you're still in a position to make money on the sale.

You received several offers right away, with one person even suggesting he'd pay off your mortgage completely while the sale pends, since you mentioned that you need to sell to avoid foreclosure. In return, he'd like to pay you after the home is sold. All you have to do is sign over the deed.

Why would you choose a short sale over foreclosure?

You may not want to go through a foreclosure or a short sale, but if it's necessary to do so, there are some things that can help you get through the process without it devastating your life. Fortunately, short sales don't have to be as damaging as foreclosures, so they're a better option for many people.

When you sell a home through a short sale, you sell the home for less than it's worth while having the remaining debt forgiven. The lender has to agree to the sale, but once it does, the sale can proceed. At that point, the lender sends out information to the credit bureaus to state that the debt is paid but that it was not paid in full. This damages your reputation.

Gymboree to close 3 stores in South Carolina

With the increasing popularity of online shopping, many clothing retailers have struggled to stay afloat. Even though malls are still popular, they lack the footfall that they once had. As a result, many retailers are ending up in bankruptcy, either to liquidate their assets or to restructure their businesses.

Bankruptcy is a hard pill to swallow for many businesses, but it has to happen in some cases. Gymboree is the latest store to go through closings as a result of poor sales, with three South Carolinian outlets closing under a bankruptcy plan.

Apartment rental rates skyrocket in parts of Charlotte

If you're interested in purchasing property to rent out and have considered looking outside the state, you want to know that you're renting in an area where you'll make the biggest bang for your buck. In the neighboring North Carolina, Charlotte has many areas you may be interested in, some of which have some of the highest apartment rental rates in all of the state.

The city is highly popular, and many of the neighborhoods have become popular destinations. RENTCafé performed a study to identify the average rental rates in these areas. In the most popular areas including Elizabeth, Dilworth, South End, Uptown and Plaza Midwood, renters can expect to pay between $1,420 and $1,608 monthly to live in the neighborhoods.

Can a preapproved sale price help your short sale?

You never thought you'd be in this position, but now you need to sell your home for less than it's worth or face foreclosure. Your attorney told you about short sales, which are a good way to avoid foreclosure. Unfortunately, there are some downsides to short sales.

Short sales often take a long period of time to complete due to their complexities. It's normal to receive an offer on a short sale only to have to wait months for the lender or bank to decide if it will accept the offer or turn it down. Since that's the case, you need to know the best ways to speed up the sale.

Program helps save over 12,000 homes from foreclosure

If you live in South Carolina and worry about your home being foreclosed on, you may be happy to hear that there is a foreclosure-prevention program taking place that helps 12,000 people save their homes. The program, called the South Carolina Homeownership and Employment Lending Program, was started in 2011 as a way to help people who were going to lose their homes.

The good news about this program is that as of April 2017, over 98 percent of the people who have been assisted have avoided foreclosure and continued to avoid foreclosure. In all, 12,182 eligible homeowners have benefited from the program. The state has distributed close to $202 million to aid those who need it most.

Short sales: You need to prepare to wait

If you're trying to sell your home through a short sale, you need to understand that it can take many months to complete the transaction. This can put off some buyers, especially because after all that time, it may turn out that the mortgage company doesn't accept their bid.

Fortunately, each short sale is different, and if your attorney is in contact with the mortgage company, he or she may be able to help move the sale along. Negotiations can take time during any sale, but there are a few things to do to help reduce the wait.

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