Foreclosures are a popular segment of the Charlotte real estate market.  There are several different types of Foreclosures which Charlotte area buyers should be aware of.  These include:

Preforeclosures: these properties have not yet been foreclosed on by the bank; the owners are at least 30 days late on their mortgage payment; if the property is worth more than the mortgage, and the buyer is willing to pay more than the mortgage balance, these transactions can move forward without too much difficulty; since property values have come down significantly from their 2006-2007 peak, it's seemingly rare to find a home in preforeclosure that has a mortgage balance less than it's market value; that is because most homeowners who purchased homes from 2000-2007, put down a relatively small downpayment; if the homeowner has owned the home for a longer period of time, there is a better chance the the mortgage balance is less than the market value and a preforeclosure sale is more likely

Short Sales: these are properties in preforeclosure where the homeowner's mortgage balance exceeds the market value of the property; banks must give an interested buyer permission to purchase the home for less that what's owed on it; if the homeowners want to get the short sale approved and to sell the home, they must provide information on their financial situation to the bank; there is also other paperwork involved; some banks are more receptive to short sales than are others

Foreclosures (also known as REOs and bank owned properties): these properties have been foreclosed on by the banks; the foreclosure process has already gone through and the bank owns the property; these types of foreclosures are easier to buy, mainly because the sale approval process is relatively quick; most of these homes will be at least in decent condition because the banks will try to maximize their profit by making necessary repairs to get the home looking decent; there is usually a discount available but some discounts will be greater than others; the amount of the discount depends on demand for the property, days it has been on the market and the time of year (banks unload inventory at the end of the fiscal year, between November and the end of December)

To receive a Hot List of the best priced foreclosures in Charlotte, request the list here: http://charlottespreferredbrokers.com/content/article.html/2535374/