Short Sale in NJ: Easy Explanation of How They Work & Don’t

Short Sale in NJ

Why Does A Short Sale in NJ Take So Long?

Great question I get this one all the time and it sometimes is not so easy to answer depending on who is asking and what home they are looking at, My home buyers in NJ often say “hey Matt we made an offer on that Short Sale 3 months ago, don;t you think the bank would be happy to get rid of it?” well the answer would be yes the bank would like to get rid of the home but there may be more than one bank involved, if the home owner had several mortgages on the property there is a pretty good chance that the loan was sold off several time, I had a home recently where the short sale took a solid 2 years to get approved because the home was sitting vacant for a good 4 years and the bank sold the mortgage off several times during the boom days and now some of the banks that held the mortgage went out of business and were sold off to private investors and we had to track down and negotiate with the current lien holders, So that is just one of the reasons why these Short Sales will take so long to complete.

Sometimes I also have homes listed under what the bank will accept and home buyers will ask why its listed at one price but they bank wants another price for the home, I know it sounds silly but when an agent lists a home he rarely has an idea as to what the bank will accept as an offer so we have to use our best judgement our goal as agents is to list the price to solicit enough of offer to start the negotiation with the Asset Manager of the bank and usually they bank will accept what you offer but they do come back and and ask for a little more to cover there carrying and legal expenses.

A majority of the time when you buy a distressed property in NJ you are buying it as is, the ban will not do anything too the property and sometimes you get the home at a discounted price but the banks know what the property is worth and they are not going to just start handing money away either, I hear i t all the time ” I want a good deal” well  you can get one if your patient and reasonable but your not going to get a 500k home for 200k that is just not going to happen these days, the market has changed in parts of NJ and home prices and values are starting too climb.

My advice if your looking to buy a Short Sale home in New Jersey is too find a Short Sale Certified agent who has done several transactions like this and knows how to work with attorneys and banks for that matter, it takes time patients and allot of energy and you have to know how to navigate around all that.

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    5 Demands to Make on Your Real Nutey Estate Agent

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    Are you thinking of selling your house in Nutley? Are you dreading having to deal with strangers walking through the house? Are you concerned about getting the paperwork correct? Hiring a professional real estate agent can take away most of the challenges of selling. A great agent is always worth more than the commission they charge just like a great doctor or great accountant.

    You want to deal with one of the best agents in Nutley. To do this, you must be able to distinguish the average agent from the great one.

    Here are the top 5 demands to make of your Real Estate Agent when selling your house:

    1. Tell the truth about the price

    Too many agents in Nutley  just take the listing at any price and then try to the ‘work the seller’ for a price correction later. Demand that the agent prove to you that they have a belief in the price they are suggesting. Make them show you their plan to sell the house at that price – TWICE! Every house in today’s market must be sold two times – first to a buyer and then to the bank.

    The second sale may be more difficult than the first. The residential appraisal process has gotten tougher. A recent survey showed that there was a challenge with the appraisal on 24% of all residential real estate transactions. It has become more difficult to get the banks to agree on the contract price. A red flag should be raised if your agent is not discussing this with you at the time of the listing.

    2. Understand the timetable with which your family is dealing

    You will be moving your family to a new home. Whether the move revolves around the start of a new school year or the start of a new job, you will be trying to put the move to a plan.

    This can be very emotionally draining. Demand from your agent an appreciation for the timetables you are setting. You agent cannot pick the exact date of your move, but they should exert any influence they can, to make it work.

    3. Remove as many of the challenges as possible

    It is imperative that your agent knows how to handle the challenges that will arise. An agent’s ability to negotiate is critical in this market.

    Remember: If you have an agent who was weak negotiating with you on the parts of the listing contract that were most important to them and their family  (commission, length, etc.), don’t expect them to turn into Super hero when they are negotiating for you and your family with your buyer.

    4. Help with the relocation

    If you haven’t yet picked your new home, make sure the agent is capable and willing to help you. The coordination of the move is crucial. You don’t want to be without a roof over your head the night of the closing. Likewise, you don’t want to end up paying two housing expenses (whether it is rent or mortgage). You should, in most cases, be able to close on your current home and immediately move into your new residence.

    5. Get the house SOLD!

    There is a reason you are putting yourself and your family through the process of moving.

    You are moving on with your life in some way. The reason is important or you wouldn’t be dealing with the headaches and challenges that come along with selling. Do not allow your agent to forget these motivations. Constantly remind them that selling the house is why you hired them. Make sure that they don’t worry about your feelings more than they worry about your family. If they discover something needs to be done to attain your goal (i.e. price correction, repair, removing clutter), insist they have the courage to inform you.

    Good agents know how to deliver good news. Great agents know how to deliver tough news. In today’s market, YOU NEED A GREAT AGENT IN NUTLEY!

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                Nutley is a town 9 miles outside of New York City, A suburban feel that boasts fine restaurants and pubs everything from Italian and Indian food you can get within minutes from each other, the best part is it is located minutes from NYC transportation, shopping, major highways and more. Nutley has a fabulous Park system that spreads through out the 3 square miles of the town. Home of Annie Oakley and Martha Stewart Nutley most of all is a great town to raise a family! some new things going on with the town are A new Italian Restaurant Luces is moving into the old Terazzas Space and Hoffman LaRoche is in the process of transforming the former Nutley Headquarters, Some new development will be taking place on Kingsland St and Centre st, the town is ever transforming itself to meet the residents demands, take a moment below to see the Nutley Real Estate stats and see how Nutley would be a great town to start exploring. Read More

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                    7 Steps to Take Before You Buy a Home in Nutley

                    Most potential home buyers are a smidge daunted by the fact that they’re about to agree to a hefty mortgage that they’ll be paying for the next few decades. The best way to relieve that anxiety is to be confident you’re purchasing the best home at a price you can afford with the most favorable financing. These seven steps will help you make smart decisions about your biggest purchase.

                    1. Decide how much home you can afford

                    Generally, you can afford a home priced 2 to 3 times your gross income. Remember to consider costs every homeowner must cover: property taxes, insurance, maintenance, utilities, and community association fees, if applicable, as well as costs specific to your family, such as day care if you plan to have children.

                    2. Develop your home wish list

                    Be honest about which features you must have and which you’d like to have. Handicap accessibility for an aging parent or special needs child is a must. Granite countertops and stainless steel appliances are in the bonus category. Come up with your top-five must-haves and top-five wants to help you focus your search and make a logical, rather than emotional, choice when home shopping.

                    3. Select where you want to live

                    Make a list of your top-five community priorities, such as commute time, schools, and recreational facilities. Ask your REALTOR® to help you identify three to four target neighborhoods based on your priorities.

                    4. Start saving

                    Have you saved enough money to qualify for a mortgage and cover your downpayment? Ideally, you should have 20% of the purchase price set aside for a downpayment, but some lenders allow as little as 5% down. A small downpayment preserves your savings for emergencies.

                    However, the lower your downpayment, the higher the loan amount you’ll need to qualify for, and if you still qualify, the higher your monthly payment. Your downpayment size can also influence your interest rate and the type of loan you can get.

                    Finally, if your downpayment is less than 20%, you’ll be required to purchase private mortgage insurance. Depending on the size of your loan, PMI can add hundreds to your monthly payment. Check with your state and local government for mortgage and downpayment assistance programs for first-time buyers.

                    5. Ask about all the costs before you sign

                    A downpayment is just one homebuying cost. Your REALTOR® can tell you what other costs buyers commonly pay in your area—including home inspections, attorneys’ fees, and transfer fees of 2% to 7% of the home price. Tally up the extras you’ll also want to buy after you move-in, such as window coverings and patio furniture for your new yard.

                    6. Get your credit in order

                    A credit report details your borrowing history, including any late payments and bad debts, and typically includes a credit score. Lenders lean heavily on your credit report and credit score in determining whether, how much, and at what interest rate to lend for a home. Most require a minimum credit score of 620 for a home mortgage.

                    You’re entitled to free copies of your credit reports annually from the major credit bureaus: Equifax, Experian, and TransUnion. Order and then pore over them to ensure the information is accurate, and try to correct any errors before you buy. If your credit score isn’t up to snuff, the easiest ways to improve it are to pay every bill on time and pay down high credit card debt.

                    7. Get prequalified

                    Meet with a lender to get a prequalification letter that says how much house you’re qualified to buy. Start gathering the paperwork your lender says it needs. Most want to see W-2 forms verifying your employment and income, copies of pay stubs, and two to four months of banking statements.

                    If you’re self-employed, you’ll need your current profit and loss statement, a current balance sheet, and personal and business income tax returns for the previous two years.

                    Consider your financing options. The longer the loan, the smaller your monthly payment. Fixed-rate mortgages offer payment certainty; an adjustable-rate mortgage offers a lower monthly payment. However, an adjustable-rate mortgage may adjust dramatically. Be sure to calculate your affordability at both the lowest and highest

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