Understanding Short Sales in New Jersey
A short sale is a sale of property where the proceeds fall short of the balance owed on the property’s loan and other liens. It often occurs as a last resort for homeowners unable to meet mortgage payments.
The process begins with the homeowner or their representative contacting the lender to discuss the financial hardship. Necessary documentation includes a hardship letter, financial statements, and an appraisal to determine the property’s market value. The lender then evaluates if a short sale is a viable solution.
Benefits of a short sale include avoiding foreclosure, being less costly and stressful, and possibly having debt forgiven. However, there are drawbacks, such as negative impact on credit score, potential deficiency judgment, tax implications, emotional and financial stress, time consumption, and no guarantee of approval.
Exploring Short Sale Options
If you are considering a short sale or have questions about the process, Friscia & Associates can provide expert guidance. Call us at (973) 500-8024 or (212) 960-8308, or submit your contact information online for direct assistance.