While one might argue that the prices of homes in NJ haven’t dropped to the point where they might be considered “affordable,” short sales still offer discounts for buyers who can tolerate a lengthy close.
A short sale occurs when the bank or lender will accept less than the value of the loan to move a property. A short sale allows the borrower and lender to avoid foreclosure, and the buyer to generally receive a discount.
For those seeking homes in NJ, short sales are out there and significant price reductions may be available. It all depends on what value the bank or lender is willing to reconcile. Short sales, however, do present drawbacks.
According to an article titled “How to do a short sale,” borrowers and buyers should obtain legal advice and call their respective accountants. All parties should “be aware the I.R.S could consider debt forgiveness as income, and there is no guarantee that a lender who accepts a short sale will not legally pursue a borrower for the difference between the amount owed and the amount paid,” (http://homebuying.about.com/od/4closureshortsales/a/shortsalebasics.htm).
For those seeking homes in NJ, however, short sales could be a very economical way to secure a dream home. Finding a real estate agent willing to guide you through the often lengthy short sale process may be difficult, but the reward is clear.
Finding a short sale may require a little homework. Real estate listings that reference “bank owned” or “all offers subject to bank approval” are ones you’re looking for. Now is the time to take advantage of the opportunities available via short sales.
