Short sales in Bergen County are going up. Foreclosures in Bergen County are going up. We must look at this situation and be prepared for what could happen if we do not truly understand the market.
In the current real estate market in Bergen County New Jersey, it’s almost impossible to have any day to day dealings with anyone that does not include something to do with distressed or foreclosed properties. January, 2011’s sales was 70% distressed properties!
Many homeowners throughout New Jersey may not know the advantages of a short sale in comparison to a foreclosure. The Short Sale is only possible when a homeowner can meet their mortgage lender’s criteria for a short sale to be able to avoid foreclosure by selling the property for an amount less than the amount that is owed against the mortgage loan.
A more complete description of Short Sale is as follows:
A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property’s loan. It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than other alternatives available at the time. Both parties (the homeowner and potential buyer) consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrowers. This agreement, however, does not necessarily release the borrower from the obligation to pay the remaining balance of the loan.
Bergen County Short sales need to be handled by qualified real estate agents. They need to be trained and have experience. Luckily the agents we work with every day are trained and experienced in handling distressed properties
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