Short Sale Facts for Buying a Home in New Jersey
October 27th, 2008 by Martha
If you’re thinking about buying a home in New Jersey, you may encounter what’s known as a “short sale.”
Short sales occur when a seller paid too much for their current home and has no equity or if a seller over-mortgaged and the loan balance exceeds the value of the property.
A seller must qualify for a short sale. They must prove financial distress and submit evidence of the hardship to the lender for approval.
As a potential homebuyer here in New Jersey, here are some facts that you should know about short sales…
- The lender is looking to sell the property at current market value and nothing less.
- The property is usually sold in AS-IS condition, meaning mechanical and structural defects will be the responsibility of the buyer.
- Buyer needs to meet the terms of the lender.
- Buyer has no control of the transaction timeline.
- A response to a written offer can take weeks and sometimes months.
- There is no set time to close of title. In New Jersey, short sales are taking over three months to close after coming to terms with an offer. Many times, the property may go into foreclosure and the transaction may never happen.
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Short sales can definitely take many months….I’ve heard as long as 5 months.