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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    About Matthew DeFede

    Nutley Real Estate Agent

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