New Jersey Short Sales

A short sale transaction occurs when the value of the property is less than the amount you owe on a mortgage. For example, if you owe $500,000 on a mortgage and the value of the property is $300,000, you can submit an application to your lender for the lender to accept a contract for the sale of the property for an amount less than the outstanding mortgage on the property.

he process behind a short sale may be confusing for those who have never had to understand it before. The first step in the short sale process is the seller of the property agreeing to an offer that you provide. You will also have to have the lender approve the offer and agree that the seller is facing financial hardship. The lender also needs to determine whether or not the sale price is justified in order to approve the short sale.

Unfortunately, just like many other real estate transactions, you may face complications in completing a short sale. Some of the factors that can negatively impact a short sale include liens that may exist on the title of the home, homeowners’ association dues or liquid assets that may be able to cover the amount of money that you owe on the rest of the mortgage.

Short sales can be very confusing and if you are considering taking this route, you should seek legal counsel with an experienced real estate attorney.

Joseph Gachko, Esq. is an experienced New Jersey attorney who can assist you in any of your real estate-related legal matters. If you require legal counsel for your real estate matters, please contact The Law Office of Joseph Gachko today to set up a consultation.