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Charlotte NC Short Sales-New FDIC Loan Modification Program May Help

Charlotte NC short sales may decline as a result of a new loan modification program announced this week by the federal government.  This program, called "Making Home Affordable," becomes one more option that home owners may be able to use to avoid foreclosure.

The following is a glossary of terms that describes some of the options and terms that a home owner contemplating a Charlotte NC short sale should know.

  • Short Sale   A property sale where the lender accepts less than the total amount due on the mortgage or mortgages.
  • Loan Modification   A loss mitigation tool that involves a permanent change in one or more of the terms of the loan so that the homeowner is able to afford the payment.
  • Forbearance   An option where the lender gives the borrower time to catch up on their payments while foreclosure is delayed.
  • Deed-in-lieu-of-Foreclosure   The home owner voluntarily relinquishes the home as a last ditch effort to avoid foreclosure.
  • Foreclosure   The legal process by which a lender reclaims the property when the home owner has not made the mortgage payments.

Not everyone will qualify for the new loan modification program.  But it may provide a way for some Charlotte NC home owners to stay in their homes.  The various options described above should be discussed with an attorney and a tax accountant.

More information about the new federal loan modification program can be found in the link to the FDIC Loan Modification Guide below. 

FDIC Loan Modification Guide

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About the author:  Carol Fox of Allen Tate Realtors is a veteran agent who has helped Charlotte NC home sellers for over twenty years.

Copyright 2009.  Carol Fox.  All rights reserved.  *Charlotte NC Short Sales-New FDIC Loan Modification Program May Help*

Posted: Friday, March 6, 2009 11:59 AM by Carol Fox

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