What is a short sale and how does it benefit you here in New Jersey?
It’s a great question If you’re thinking about it!
In this write-up, we will get into that question so you as a New Jersey New Jersey homeowner could have options during the foreclosure or just your home mortgage is sunken.
What is a Short Sale and How Does it Benefit You?
Short sales were common in the market a couple of years ago when an outpouring of foreclosures hit theNew Jersey market… as foreclosures have declined and home values have back down a bit… lenders are likely a little less to offer a short sale as an option as they used to be (but they are still doing a lot of them!).
A short sale can be a smart way to mitigate foreclosure (here’s a great definition of what a foreclosure is in case you’re not sure) on a mortgage, although they can be difficult to achieve in market now adays, they prove it to be a easiest way to solve any debt left over from a loan.
Here are a few reasons you may want to consider short sale on your New Jersey home
How to avoid Foreclosure And The Harmful Effects Of It
Foreclosure can lead to all kinds of financial problems, starting with the inability to obtain a new loan for a home because it stays on your credit record for up to 7 years. The best benefit of a short sale is that you avoid a foreclosure on your home. Your mortgage lender accepts less than what is owed on your mortgage, leaving you without the debt that you cannot afford.
Even renting will become harder as your credit score would be affected, and often you have to disclose a foreclosure on a rental application. Foreclosures can also last for a long time ( 7 years and up as mentioned), it will take years to qualify for getting a new mortgage.
A short sale relieves the debt that is leftover from what is owed on the mortgage, letting both the bank and the seller move on. A short sale also does not be difficult on your credit score, it could allow a homeowner the ability to recover in the future. Your credit report will only show a pre-foreclosure status, which minimally reduces your credit rating as compared to a foreclosure.
As you face all kinds of ramifications on foreclosure. Renting a house and purchasing a new car might be impossible through the normal bank loan rates.
If you work with money at your job you could even face termination if your employer puts a lot of stock in that kind of thing (most employers won’t but it has been done before).
Buying a New House
Short sales offer a little more flexibility for the seller, allowing new home applications for only 2 years after the filing which depends on the bank. It also makes a mortgage lender more likely to approve your loan than if you had a full foreclosure, getting you back into a home faster.
A foreclosure can last for a long time, making it impossible to purchase a mortgage again for 7 years and more.
However, it all depends on the actual bank/lender you’re interested in… it gives you a hard time for a year or two after a short sale…look for other options and find other banks to work with.
Usually No Fees Involved
One of the potential benefits of the short sale is usually no fees that comes with the process from the bank. Banks usually wanted to get the note off of their books… and if it can be proven that your house is “inundated” (you owe more than your house is worth)… and you’re at the risk of walking away from the house… the bank may rather work out a short sale instead of a costly foreclosure.
With a foreclosure, your mortgage lender may tack on extra fees that only make the damage worse.
In real estate consultants some may charge for a fee in facilitating the foreclosure…so check with them before you enlist a real estate agent or firm in helping you with the said situation.
Our company, Savannah Properties may be able to help you in the right direction on how to give yourself the best shot at a bank approving a short sale with your New Jersey area house… so connect with us by emailing us through our contact page here.
Getting a Short Sale – What You May Need To Provide
If you don’t know who to contact or where to turn to see if a short sale may be a good option for you… get in touch with us. You just provide the bank with proof of unable to cope up with your mortgage payments. This can be difficult and it is best resolved by having the best real estate attorney that has a lot of experience in dealing with this type of law.
We won’t charge a thing to discuss your situation with you and let you know your options. and also we can even give you pointers and guidance at absolutely no cost or obligation.
Sometimes we’re actually able to do the work for you or even buy the house from you to get you out from under that mortgage… so that may be a viable option for you.
We buy New Jersey houses and we work with home sellers who are having hardships in getting out of your house the traditional way… or who can’t (or don’t want to) go the usual route of listing with an agent.
Get a hold of us anytime to discuss your situation. We’re here for you!
Hence, if you would like to see what we can offer on your house… click the link below and fill out the form on the next page. We’ll make a no-obligation cash offer to you within 24 hours.