Pre Foreclosures in Charlotte - An Overview
If you have been contemplating about buying a house, this is as good a time to buy a house as any. With home prices in Charlotte holding steady in the recent past and with relief expected in other parts of the state as well, an increasing number of people are looking at buying residential property. Since homes in pre foreclosure are generally sold at discounted prices, they are an option worth considering.
The myth about homes in foreclosure being in unsavory neighborhoods has long been dispelled. Foreclosure homes are now part of almost every affluent neighborhood in Charlotte. However, you must remember that a house goes through foreclosure because the home owner is in financial strife; therefore, you must expect to find these houses in various stages of neglect.
A home owner is served with intent to foreclose on the home when he/she continuously defaults on the mortgage payments. This is when the home enters pre foreclosure. After this, the home owner is given a stipulated amount of time to fix the default before the house is put up for sale at an auction.
The home owner then has two ways to avoid foreclosure. One is to take care of the default in question within the given time frame. However, in cases where this is not possible, the home owner can choose to sell the home to collect funds which the lender needs to be paid back. This is the primary reason for the occurrence of pre foreclosure sales.
A short sale is where the lender allows the property to be sold for less than what is owed on the mortgage and agrees to write off the remaining amount. A lender would do this to avoid the costs that are associated with the foreclosure process and the costs that would have to be incurred in maintaining the property post foreclosure.
You would be in a position to drive a hard bargain in cases where the amount that is owed to the lender is low.
Since pre foreclosure houses can be in various degrees of neglect, it is important that you inspect them; and since you would be dealing directly with the home owner, that should not be a problem. Check if the structure has been damaged in any way, as structural damage can be very expensive to fix. Check if all the basic amenities (electrical appliances and fixtures, plumbing, gas, etc.) are in working condition. Calculate costs that would have to be incurred in re-painting, re-carpeting, etc. Only after doing this should you make your offer.
Do remember, there are many home owners who are still facing problems keeping up with their mortgage payments. Go through all the possible resources before you narrow in on the house that you decide to buy.
