New Jersey Real Estate
What is a Short Sale
A “Short Sale” is defined as Getting YOUR Lender to Accept a Lower Payoff of YOUR DEBT in order to SELL the House and Stop the FORECLOSURE.
Have you ever known anyone who has become behind on house payments due to some kind of hardship? I’m not talking about spending too much, but a hardship like a death or a spouse, job loss, divorce or a major illness. Before considering bankruptcy or having the bank foreclose on your property, consider what is known as a short sale.
A short sale happens when an owner is behind on payments and the house is worth less than what is owed. A lender may agree to a short sale, agreeing to accept less than what is owed. In order for a short sale to be agreed upon, the home owner must prove a hardship situation to the lender. Other things the lender will require include 2 years of tax returns, a financial worksheet, bank statements, pay stubs and a few more items.
There are distinct advantages for a home owner in doing a short sale versus being foreclosed upon or declaring bankruptcy. A bankruptcy is very bad on a credit report. What most people don’t know also is that a lender can still come in and foreclose on a home even if it is a homestead and the seller has declared bankruptcy. A foreclosure is even worse on a credit report than a bankruptcy. With a short sale, the only penalization on the credit report is for the missed payments.
If you or anyone you know is facing a situation that might lead to a short sale, please contact me immediately at 201-924-645. I can set up a no obligation meeting and provide you the facts. I am an experienced short sale negotiator in this area.
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