NJ Short Sale as an Option to Avoid Foreclosure
This is Veer Patel from the Law Offices of Patel Soltis & Cardenas. I want to talk to you a little bit more about loss mitigation and some other options you may have speciffically the Pros and Cons of a NJ Short Sale. Please understand that a short sale in New Jersey is serious business. Take this as a notice that at the end of the day you may not financially profit from the short sale. This may not seem fair, however, you may be able to work out money to move if you have the right short sale team working with you.
A NJ short sale is something that you know you need to be wary of pursuing a short sale. Most short sale businesses acting as buyers want sellers to accept whatever is the best interest of the business buying your property. This makes financial sense for the company buying your home as they are in the business to get as many short sales as possible for as little money as possible. They search the entire Map of New Jersey to find candidates for them to buy their homes.
Watch out for NJ Short Sale Scams including offers from Lenders, Buyers, Loan Modifiers, or Loan Originators that sound too good to be true
You may have seen buyers commercials on facebook or twitter offering to buy your home for cash, or lease your home back to you. Have you ever stumbled across a fake press release about short sales for a new company that has an amazing solution offering services that sound like the miracle you were looking for? Every month, we have to fight scam artists to get our clients their money back from fake loan modification companies and people that pretend to be lenders with an offer that could include loans that never materialize that leave potential buyers left out in the cold feeling they have no other option but a short sale. Have you gotten a cash offer for your home where the amount offered is well above the price of your home?
Talk to an NJ Real Estate attorney today for free to go over the offer. This is a FREE CONSULTATION to make sure you understand all of your options, not just the options that benefit the buyer in a short sale.
As the seller, it may not make financial sense for you to go through with a Short Sale in New Jersey, so make sure to talk through all of your options with a New Jersey foreclosure defense lawyer and a New Jersey Realator.
Options to a short sale include:
- Selling the home for a profit
- Leasing the home or rooms to make extra money
- Bankruptcy – Chapter 7, Chapter 13, Chapter 11 or a combination of the three
- Deed-in-Lieu of Foreclosure if you want out of the property sooner than later or you may be offered money to move in conjuction with a deed-in-lieu-of-foreclosure
- Loan Modification – Even if you tried in the past, let us review your former application and even go after the people you paid for the loan modification if you would never have qualified. Less than 70 companies are licensed to perform loan modifications in the State of New Jersey. (Attorneys are also allowed to assist in loan modifications, but it doesn’t mean that they are not scamming people out of money. Last week we got a check for $3998 back for one client.)
We have had people come to our law office trying to pursue a short sale, but after we analyzed their property found out that they could sell it on the open market and make a profit to but that money in their bank account versus the bank account the of the business trying to scam them. There is no copyright on Scams, and we see the same ones over and over coming from one hundred different directions. The difference one phone call can make is the difference between requesting support from family in retirement and even have to start a new career(s) to work years you should have to being able to share in your good fortune with your family from selling your home for a profit because you made the right decision to continue to look for the best solution instead of taking the first offer that you got.
Why Choose a Short Sale as a Home Owner in New Jersey?
A short sale in New Jersey may be your last option to avoid having a foreclosure on your record and avoiding your home being sold at a county sheriff auction. If you have explored all of your other options to keep your home, or your decision is just to get rid of the property as no amount of good news about the property could ever balance your want to continue to deal with the property then a short sale may be your best and only viable option.
We have seen parents who unfortunately inherited their children’s homes that were underwater and could not even deal with trying to open the front door let alone the financial burden of the loans on the homes that wanted a short sale. Imagine a retired couple that could not afford to keep a second house, and couldn’t declare bankruptcy as it would have taken their other assets to get rid of their homes. We have seen investors sink thousands of dollars into properties that they could not lease, sell for an amount to make a profit, that did not have clear title eventually give into a short sale.
As the seller, you are not allowed to profit from the short sale, and normally you cannot sell the property to a family member or close family friend. Basically, the banks do not want you getting over on them by secretly profiting from the deal. You can see the content of your home for a profit, but not the home itself. However, sometimes the banks will include a clause in the short sales contract for funds to be used for moving to come out of the sale price. However, this normally has to be negotiated by someone looking out for your best interests, not the banks and not the buyers. This is where you may want to look into hiring a short sale company that gets paid by the buyer at closing that is going to negotiate the short sale on your behalf.
A Short Sale may be your last chance to avoid facing foreclosure in New Jersey
You get a short sale only as a last chance when all of your options have run out. So it really to save your credit and that’s really the only option you have left as you are underwater on your current mortgage or mortgages if you took out more than one when the housing market was good. With a short sale, there’s no equity left in the property. All right so let’s say your house is worth $500,000 and you owe $750,000.
You would do a short sale so you can sell the property. First, you need the bank’s permission for a short sale. Then you get a realtor or even an attorney to your short sale package. At closing the bank agrees to take less than what’s owed at closing. You’re gonna want to make sure your attorney whatever the short sale agreement protects you from any deficiency. So the $250,000 the bank let’s say they didn’t get paid. Since the house was sold for $500,000.
Without you know waiving the deficiency you’re on the hook for the $250,000 in an NJ Short Sale when you didn’t have an NJ Foreclosure Defense Lawyer to Protect you
So, you want to be careful about that. Also, you have to keep in mind that there are tax consequences.
Now, I’m not the guy to talk about tax
consequences because I’m an attorney. But you need to speak to an accountant when you’re doing a transaction like this because you can get hit with a significant tax liability in a short sale. So that needs to be kept in mind as well.
Veer Patel, Esq. NJ Foreclosure Defense lawyer is both a New Jersey & New York State Licensed attorney He focuses on saving homes from Foreclosure. He has helped many people with defending foreclosure lawsuits in both New Jersey and New York.