What is a short sale?

A short sale is a real estate transaction in which the proceeds from selling a property are less than the debts secured by the mortgages or liens against it. It is commonly used as an alternative to foreclosure in North Carolina. In a short sale, the property owner will work with the lender to negotiate a sale price and sale terms that are acceptable to both parties. The lender then forgives the debt associated with the sale and the property owner is not held responsible for the remaining balance. In North Carolina, there are certain criteria that must be met for a lender to agree to a short sale. The property must have a current market value that is lower than the outstanding mortgage balance, and the homeowner must prove that they are unable to pay off the mortgage debt. Additionally, the homeowner must present a hardship letter to the lender that outlines the extenuating circumstances that have led to the request for a short sale. The short sale process can be lengthy and complicated, so it’s important to familiarize yourself with the laws and regulations that govern short sales in North Carolina. Additionally, both the borrower and the lender should seek qualified legal counsel to ensure that all parties are properly represented and protected.

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What is a short sale?

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