A short sale NJ can happen when the mortgage company (Lien Holder) agrees to settle their loan with the borrower at less than the full amount due. Though this will most likely affect the homeowner’s credit score it will not damage it as much as a foreclosure or bankruptcy. This must be approved by the lender but if the lender thinks they can afford the current loan they will not approve it.
The Short Sale NJ Process
A few this must occur for the process to happen:
- The real estate contract or any Realtor commission must state it is “contingent upon the approval of the lender”
- The seller must accept an offer
- The bank must approve the terms of the offer as well as sign-off on the seller’s financial hardship circumstances.
- The seller (homeowner) will need to prove a financial hardship in order for the bank to approve the short sale
- The bank will do its own research on the property to confirm the sale price is justified.
- The listing agent must make sure there are comparative sales similar to the sales price that is accepted
The following is a timeline of steps that should be taken to complete a short sale NJ:
- The seller lists the property for sale with a Realtor after agreeing on a competitive listing price that is in line with the prices for other similar homes that sold recently.
- The seller meets with their short sale attorney to retain them to negotiate the transaction with the seller’s lender(s), and executes a client authorization agreement to allow the attorney to communicate with their lender.
- The seller gathers all requested financial and hardship information and provides it to their attorney.
- The seller’s Realtor provides a copy of the listing agreement, comparable sales, and marketing history to the seller’s short sale attorney.
- An offer is received and negotiated between a buyer and the seller. Once the parties reach agreement, the contract is signed by the buyer and the seller. The bank does not sign the contract. They only approve the contract and sale.
- The contract, client authorization agreement, listing agreement, settlement statement, hardship information and all financial information are submitted to the Seller’s lender or lenders if there are two loans. (This is typical if a homeowner took out an equity line of credit against their home.)
- The seller’s file is eventually assigned to a specific loss mitigation negotiator at the bank(s).
- In approximately 60-120 days, the bank completes is price opinion and provides an approval or denial of the short sale.
If you want to sell your house and are curious on how the process works… and want to see what we can pay you for your house… you can get that ball rolling in a couple ways.
Give us a call today at (908) 912-6701: We’ll ask a few basic questions about your house… and within 24 hours we’ll make you an offer on your house. No Obligation at all. If the price works for you. Great! We can close on your timeline… in as little as 7 days.
Go fill out this really short and simple form with your basic house info: We’ll evaluate the property as soon as we get it today… then we’ll call you with a formal offer on your house in less than 24 hours.
It’s really simple. You pay no fees. No commissions.
We just agree on a price that works for both of us and that’s it.
Let us make you an offer on your New Jersey area house (we buy in other parts of New Jersey as well). You don’t have anything to lose. And you can have your house sold by this time next week (if you wanted us to close that fast) rather than having to wait months and months to market your house yourself the traditional way.