THE DEFINITION OF A SHORT SALE

If you see a price listed for a home that you think home-sale-sign3is too low for the neighborhood, ask your agent to call the listing agent to find out if the home is a short sale.

Making an offer on a pre-foreclosure, short sale home is not as simple as you may think, and very few can close in 30 days or less. Many people have waited 4 to 6 months to close on a short sale, sometimes longer.

A short sale means the seller’s lender is accepting a discounted payoff to release an existing mortgage. Just because a property is listed with short sale terms does not mean the lender will accept your offer, even if the seller accepts it.

Be aware that the seller is not always in default before a lender will consider a short sale. A lender may consider a short sale if the seller is current but the value has fallen. The seller may owe more than the home is worth, so a discounted price might bring the price in line with market value, not below it.

Do your research before making an offer to purchase. Your agent can find out who is in title, whether a foreclosure notice has been filed and how much is owed to the lender(s). This is important because it will help you to determine how much to offer.

There could be a problem if there are two loans. The first mortgage lender’s position is protected by the second lender, unless the second lender does not want to foreclose. cdpelogo_color_name_300dpi32If a seller owes $160,000 on the first and $40,000 on the second, offering $160,000 leaves nothing for the second. The first will need to give something to the second to gain its cooperation.

Take a look at Hoboken Condo Short Sale List to get a good idea of what is taking place in the local Hoboken real estate market.

If  you have the right team in place including your real estate attorney and a Certified Distressed Property Expert certified REALTOR®, your chances of buying a short sale are greatly improved. To really get a good idea of what a CDPE can do for you click on the following link  What Is a Certified Distressed Property Expert (CDPE)?  To find out all the benefits and options of purchasing a short sale, contact Eddie Perez, Broker-REALTOR®, CDPE or Anoir Redouane, REALTOR®, CDPE.  Their market includes Hoboken, Jersey City, Weehawken and Union City.  They can be reached at 201-344-2886 or at eddie@InvestHoboken.com or Prevent Foreclosure.

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