Cherry Hill, NJ Homes for Sale
I get a lot of calls during the week inquiring about short sales, what they are, how to find them and what they entail as part of the home buying process.
What is a short sale? In its simplest terms, Nolo's Plain-English Law Dictionary states a short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property's outstanding loan. This will often occur when a borrower cannot pay the balance of the mortgage loan on their property. An additional necessary component is that the lender decides and agrees that selling the property at a moderate loss is better than pressing the borrower into the foreclosure process. Both parties thus consent to the short sale, because it allows them to avoid the costly nature of foreclosure, which involves hefty fees for the bank and very bad credit report outcomes for the borrowers. This agreement, however, does not necessarily release the borrower from the obligation to pay the remaining balance.
In a Cherry Hill Short Sale just like any other, the bank or mortgage lender agrees to discount a loan balance because of an economic or financial hardship on the part of the borrower. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender. Neither side is "doing the other a favor;" a short sale is simply the most economical solution to a problem. Banks will incur a smaller financial loss than would result from foreclosure or continued non-payment. Borrowers are able to mitigate damage to their credit history, and partially control the debt. A short sale is typically faster and less expensive than a foreclosure. It does not extinguish the remaining balance unless settlement is clearly indicated on the acceptance of offer.
Short sales can be a lengthy process. A Realtor and or Attorney experienced in the Short Sale process is invaluable to protecting your rights and ability to void the agreement under certain conditions and time constraints. Click here to Search all South Jersey Short Sales.
To register for updated Short Sale results, visit Cherry Hill, NJ Short Sales. Any questions, please do not hesitate to contact me.
Regards,
Alan
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