NJ short sale updates
We are currently working on our 100th Short Sale!!! I remember the first one in 2007 like it was just yesterday. I had a vague idea what a short sale actually was and the documentation the banks required changed every 5 minutes, it seemed. I am proud to say that we are one of New Jersey’s premier short sale specialists. I am going to answer a few questions I have received recently. Here they are:
1. Do I need an attorney to negotiate my short sale?
A. My answer to that is that yes, we do need an attorney as part of the team. As a real estate agent, I need an attorney to structure a preliminary settlement statement for the bank once we receive an offer. I also need that attorney to handle represent us at the closing table. Best part is the attorney fees are paid by the bank in the short sale. Nothing out of your pocket. However, due to our familiarity with the short sale process, we request on ALL of our short sale listings that we negotiate the sale with the lender. The only way to successfully negotiate a short sale is experience and structure. If the short sale file is not structured properly, you go to the bottom of the pile and your default becomes worse. So yes, we need an attorney but not to negotiate the settlement.
2. Do I need to go late on my mortgage before having you negotiate the short sale?
A. Sometimes yes, sometimes no. Depends on the lender and the program you qualify for. We would need to discuss on a case by case situation.
3. How does a short sale affect my credit score?
A. Assume your short sale takes 4 months to close from the first missed payment. Your credit score is affected for 4 monthly lates. There is no further penalty after the short sale is negotiated. It is hard to predetermine how much a credit score is affected with each late. It all depends on your individual credit reports. If you are a strong rating aside from your short sale, your score will be affected less than those that are in default of other tradelines.
4. What is HAFA ?
A. Simply put, HAFA stands for Homes Affordable Foreclosure Alternative. This is a short sale program if your loan is insured by Fannie Mae / Freddie Mac. Most loans with a principal balance under $715,000 are qualified, but please ask us to verify. HAFA is our most favorable program. HAFA short sales credit the seller up to $3,000 cash at closing for relocation assistance money.
5. What other short sale programs are there?
A. There are only a couple of them. Getting to know the situation will help us direct your home into the appropriate program.
Short Sales can be time consuming. Sellers looking to resolve the sale quickly must cooperate. Cooperation involves updating your monthly bank statement and bank stubs to the lender which they require until the sale is complete. If you cooperate, the short sale process is much easier and the bank will offer their assistance which we need.
We are NJ’s short sale specialists. Prior to the short sale initial paperwork, we introduce you to our team. Our team consists of us, our preferred attorney (you are not obligated to use our attorney), and the bank negotiator. Upon introduction, we educate you on the entire process so you understand all of the intracacies involved in a short sale. Nothing is hidden, everything is fully disclosed, and that is the way you will have peace of mind.
If you have any questions about the New Jersey short sale process, call Scott Allan, the expert specialist of short sales with Weichert Realtors. E-mail me here or call me direct at 877-688-7582.
Thanks and I look forward to hearing from you.