Should I Short Sale My Home?  Or Let The Bank Foreclose?

In Atlantic County, NJ real unemployment rate is currently 23%.  Nearly one in four household are currently effected by our unemployment.  Nationwide over 7.2 million people are facing a financial hardship and are in danger of loosing their home.  The question that many home owners have is should let the bank foreclose on my home or should I short sell the home? 

First of all if the bank forecloses on a home this severely effects the home owners credit score.  It will take 7 years to recover from a foreclosure in most cases.  One thing many people don’t realize is that the bank may issue a “deficiency judgment” against the home owner to collect the money owed to the bank.  In some cases the bank issues a “wage execution order” and garnishes the pay check of the home owner until the money is paid back.  This can financially cripple the home owner for a long period of time. 

What is a short sale?  A short sale is when a home owner has a financial hardship and sells the home even though they owe more than the home is worth. Our team uses the area’s premier short sale attorney to negotiate directly with the bank and protect the home owner throughout the process.

In a short sale a home owner’s credit score will drop around 100 points.  Credit will be effected for about two years.  Our legal team protects the home owner from any deficiency judgments so that there will be no further debt obligation.

The bottom line is that going through foreclosure is severly financially damaging and will effect a home seller for a long period of time.  In a short sale the home owners debt is forgivven and the home owner can recover financially in a few years.

If you know of anyone who is facing a financial hardship and in danger of loosing their home please call me.  I will be glad to discuss their options and help them minimize the financial damage they may be facing.  Call me at 609-484-9890 ext. 132.

Best wishes,

Matt

Over the last several months I have had several people contact me in need of selling their investment properties.

The problem was that they owed more than the homes were worth.  That’s where a short sale comes in.  You may not know that a short sale can work for investment property and not just for a primary residence. 

With a short sale we have to prove that the seller has a financial hardship that requires them to sell the home.  Perhaps the rent amount is not sufficient to cover the carrying cost of the home.  Perhaps a loss of job or medical condition requires the home to be sold.  Our team works with the areas leading short sale attorney.  We provide a checklist with all the documentation required so that our clients can fill this out and get it to the attorney even before we have a contract on the home.  The attorney will use the documentation to prove the financial hardship and negotiate with the bank to take less than what the seller owes.

As with any short sale, the process will take a long time – usually 90 days to get an approval from the bank.  Because the property is a second home the bank may place a deficiency judgment against the seller for the balance of what is owed.  Our attorney works to make sure that there is no further liability to our clients in this case.  Also the short sale is more likely to go through if there is just one mortgage on the property or both mortgages are with the same bank. 

The bottom line is a short sale can work for sellers in need of selling an investment property or second home.

Our team helps home sellers, buyers and investors in the Atlantic County and Atlantic City area.

You can reach me at 609-484-9890 ext. 132.

Thank you and best wishes, Matt

Here are a few properties that are great buys. Please feel free to forward this email to anyone who might be interested. Reply back or call if you are interested in any of the properties. Contact us asap before these deals are gone.

Atlantic City – $22,225: 2 bed, 1 bath single family semi detached. BANK OWNED

Galloway – $159,900: 3 bedroom, 2 full bath, 2 half bath, finished basement, large home, one acre. BANK OWNED

Egg Harbor Township – $245,000: 4 bedroom, 2.5 bath, Family room, 2 car garage, full basement. BANK OWNED

Egg Harbor Township – $127,500: 3 bedroom, 1.5 bath, 1 car garage, single family, gas heat, central air. BANK OWNED

Mullica Township – $354,900: Incredible dream home. 5 bedrooms, 4 full bath, 1 half bath, 3755 square feet, basement and two car garage on acreage. BANK OWNED

New Listings:

Egg Harbor Township – $200,000: 3 bed, 2 bath, full basement, quiet street, 3/4 acre lot.

Price Reductions:

Galloway/Smithville – $94,500: 1 bedroom first floor condo.

Galloway – $83,000: First floor one bedroom condo. Affordable fees. Quiet development.

Galloway – $117,000: Perfect completely remodeled first floor condo. 2 bedroom, l large bathroom, dining area.

Northfield – $249,900: 3 bedroom, 1.5 bath, 2 car garage, quiet and beautiful street.

Absecon – $124,900: 2 bedroom, 1 bath, 1 car garage.

Call me at 609-484-9890 ext. 132 if you or someone you know may be interested in any of these properties.

Best wishes, Matt

The Tax credit was extended to home buyers who were already under contract prior to the end of April.  Now the buyers who did not close on their home yet have until September 30th to close on the home.  This is great news for buyers who had a delay in their closing date or who were under contract to purchase a short sale and did not get bank approval yet.

Here is the publication by the IRS confirming the news about the extension and also referencing what is required by the First Time buyers and Long Time Resident to claim their credits. http://www.irs.gov/newsroom/article/0,,id=225079,00.html

If you have any additional questions regarding the tax credit contact me at 609-484-9890 ext. 132.

Best wishes, Matt