Short sales, pre-foreclosures, foreclosures and REO properties in the Charlotte real estate market.  

Many people are confused about all these different terms being thrown around. There can be great deals found in the Charlotte, NC real estate market but it's important to know what these terms mean.

Short sales and pre-foreclosures are the same thing. It means the owner is not able to keep up with the mortgage payments and the owner needs to sell. The owner is trying to sell and avoid foreclosure, but the owner owes more on the property than what it's worth. The owner is hoping the bank that holds the mortgage will take ‘short' of what's due on the balance of the mortgage.

A foreclosed home or REO property is owned by the bank. The bank has foreclosed on the property and now wants to get rid of it. Now, technically a foreclosure has to be first auctioned at the courthouse in Charlotte, NC or the respective county before the bank gets it back. You can go to the courthouse and bid on the home, but unless you've got money to blow, it's a bad idea. Why? You have to buy the house without seeing it. There's no inspection period and there's no financing contingency. And best of all, you get to evict the people living in the home. Joy! 

How can short sales and REOs be a great deal in the Charlotte real estate market? Simple - the properties have to be sold. Banks do not want to own the homes and do not want to foreclose on homes. Is it because the banks are caring? No, they want to make money on money. On a home they have foreclosed on or on a home they are not receiving payments on, they are not making money. The banks will sell. Individual sellers that have their home up for sale may not really have to sell or really want to sell.