Approaching a Short Sale in Gloucester County, NJ, Some Tips for the Buyer (Part 1 of 2)

By
Real Estate Agent with Remax Connection

A Few Tips For the Gloucester County buyer:

•·         Keep in mind that short sales do not only occur because of an anticipated foreclosure.  Sometimes a lender will accept a short sale if the value of the property has fallen and/or if the seller owes more than the property is worth in the current Gloucester County real estate market.  So the sellers may not have defaulted on their mortgage.

•·         The lender is generally only willing to accept a short sale for a property to bring the price in line with other comparable homes on the market.  Not below them.  So I wouldn't spend to much time going from Gloucester County property to property trying to low ball lenders.  It is VERY unlikely that they will negotiate that low.

•·         Negotiating with the lender can take a great deal of time.  Generally the lenders have committees that need to approve the short sale and this approval process can sometimes take up to 6 weeks or more.  The average is likely closer to 2 to 3 weeks.  Consequently, there is little chance you will be closing on a short sale in 30 to 40 days once you present an offer.  And therefore not in your new Gloucester County home too quickly!  However, the savings you could potentially realize may be worth the wait!!

•·         Do your research on the property before making an offer to purchase.  My recommendation would be to work with a Gloucester County Realtor that would know what to look for and who could recommend a reputable real estate legal professional.

•·         Be cautious of Gloucester County homes with 2 loans and know exactly what that means for you as the buyer.  If you come to an agreement with a lender where 2 loans exist, make sure you know of all deadlines and expirations and that they are similar for both loans.  

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