What is a short sale and how does it benefit you here in Bridgewater NJ?
We Buy Houses In Bridgewater New Jersey. If you’re thinking that question about yourself, great question! We are homebuyers in NJ and in this article, we’ll dive into that question so you as a Bridgewater NJ homeowner can tell what your options are during foreclosure or just if your home mortgage is underwater.
What Is A Short Sale And How Does It Benefit You In Bridgewater NJ?
A short sale can be a smart way to mitigate foreclosure (here’s a great definition of what a foreclosure is in case you’re not sure) on a mortgage, although they can be difficult to attain in today’s market, they often prove to be a simpler way to resolve any debt leftover from a loan.
Short sales were really common in the market a couple of years back when the flood of foreclosures hit the Bridgewater NJ market but as foreclosures have slowed down and home values have climbed back up a bit, lenders are a little less likely to offer a short sale as an option as they used to be (but they are still doing a lot of them!).
Here Are A Few Reasons You May Want To Consider Short Sale On Your Bridgewater NJ Home
You Avoid Foreclosure In New Jersey And The Harmful Effects Of It
The best benefit of a short sale is that you avoid a foreclosure on your home. Your mortgage lender accepts less than what is owed on your mortgage, leaving you without the debt that you cannot afford.
Foreclosure can lead to all kinds of financial problems, starting with the inability to obtain a new loan for a home because a foreclosure stays on your credit record usually for up to 7 years.
Even renting will become more difficult as your credit score would be affected, and you often have to disclose a foreclosure on a rental application. Foreclosures can also last a long time (up to 7 years as mentioned above), making you wait years to even qualify for a new mortgage.
Credit Worries In New Jersey
With a foreclosure, you face all kinds of ramifications with your credit. Buying a car and renting a house may be impossible through the normal bank loan routes.
If you work with money at your job you could even face termination if your employer puts a lot of stock in that kind of thing (most employers won’t but it has been done before).
A short sale relieves the debt that is leftover from what is owed on the mortgage, letting both the bank and the seller move on. A short sale is also easier on your credit score, which can allow a homeowner the ability to recover in the long run. Your credit report will only show a pre-foreclosure status, which reduces your credit rating minimally compared to a foreclosure.
Buying A New House In Bridgewater NJ
A foreclosure can last for a long time, making it impossible to purchase a mortgage again for up to 7 years.
Short sales offer a little more flexibility for the seller, allowing new home applications only 2 years after the filing depending on the bank. It also makes a mortgage lender more likely to approve your loan than if you had a full foreclosure, getting you back into a home faster.
Again, this all depends on the actual bank/lender you’re working with so if they’re giving you a hard time a year or two after a short sale, shop around and find another bank to work with.
Usually No Fees Involved In New Jersey
One potential benefit of the short sale is there are usually no fees associated with the process from the bank. The banks just want to get the note off of their books and if it can be proven that your house is “underwater” (you owe more than your house is worth) and you’re at the risk of walking away from the house, the bank may rather work out a short sale instead of going through a costly foreclosure.
With a foreclosure, your mortgage lender may tack on extra fees that only make the damage worse.
Some real estate consultants may charge a fee for helping facilitate the foreclosure with your bank, so check with them before you enlist a real estate agent or firm in helping you with this.
Our company, DNT Home Buyers may be able to guide you in the right direction on how to give yourself the best shot at a bank approving a short sale with your Bridgewater NJ area house, so connect with us by calling (732) 352-9065 or shoot an email to us through our contact page here.
Getting A Short Sale In Bridgewater NJ- What You May Need To Provide
You will have to provide the bank with proof of being unable to pay your mortgage payments. This can be difficult and is best resolved by finding a good real estate attorney in your area that has experience dealing with this type of law.
If you don’t know who to contact or where to turn to see if a short sale may be a good option for you, get a hold of us.
We won’t charge a thing to discuss your situation with you and let you know your options. We can even give you guidance and pointers at absolutely no cost or obligation.
Sometimes we’re actually able to do the work for you or even purchase the home from you to get you out from under that mortgage, so that may be a viable option for you.
Sell My House In Bridgewater NJ
If you have decided to sell your house in NJ to avoid foreclosure, you can call professional home investors like DNT Home Buyers. We are your local Bridgewater home buyers and we offer cash for houses in New Jersey. We’re passionate people and we’re happy to help you find answers to your toughest questions about your situation.