Buying in New Jersey
How to Find a Short Sale in the Garden State
For potential home buyers in New Jersey, purchasing a short sale property can be an option to dip their toe into this market. However, it comes with its own set of complexities and risks. Here’s a quick guide on what you need to know, what you need to have, and where to find short sale properties in New Jersey.
Understanding Short Sales
A short sale occurs when a homeowner sells their property for less than what is owed on the mortgage, with the lender’s approval. This process is seen as an alternative to foreclosure. For buyers, short sales can offer attractive prices, but they require a bit more patience and due diligence.
What You Need to Know
- Patience: Short sales can be drawn-out and complicated. The approval process involves multiple parties, including the seller, the lender, and possibly a second lender if there are additional liens on the property. The whole process may take longer as compared to a traditional home purchase.
- As-Is Condition: Short sale properties are typically sold “as-is,” meaning the seller is unlikely to make any repairs or improvements before the sale. This makes the home inspection a critical aspect of the process to identify and vet any property conditions that could have significant repair costs.
- Lender Approval: The lender must approve the sale, adding an extra layer of complexity. Lenders will review the offer to ensure it meets their requirements, and this can take several weeks or even months.
- Possible Legal and Financial Hurdles: There may be legal and financial complexities, such as outstanding liens or judgments against the property. This is where a professional and full title search is critical.
The Map on the right – https://www.zillow.com/nj/foreclosures/?gad_source=1
The Map on the left – https://www.zillow.com/nj/short-sale/
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single-family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
Connect with Ralph on LinkedIn: https://www.linkedin.com/in/ralphaponte/