How To Short Sale My Home
New Jersey Real Estate Guys is a small group of elite real estate professionals with Weichert Realtors who have quickly become Northern NJ’s leading short sale experts. If you are a homeowner in distress, if you’ve defaulted on your mortgage, or simply cannot afford your payments, we are here to offer relief. If you have found that you are unable to keep up with your mortgage, it is important to work with a licensed real estate professional and an attorney who can protect your rights and help you explore your options. If you are living paycheck to paycheck, we can help.
Watch our “How To Short Sale in NJ” video page to give you tips on how the process works.
A short sale is the agreed upon sale of your home with the ending sales price being less than the amount you owe on the payoff. The end result is the effective agreement between your mortgager and you.
Scott Allan of Weichert Realtors and president of www.NewJerseyRealEstateGuys.com, NNJ’s most popular real estate source has tremendous experience negotiating short sales in Hudson, Bergen, Essex, Morris, and Passaic County backed by dozens of references. Formerly employed by a bank, I understand all of the in’s and out’s that your lender is looking for, giving me the competetive edge over the rest of the Short Sale “specialists”.
There must be a realistic hardship for the lender to approve your sale. A hardship can be described as job loss, income loss, divorce, relocation, and many other factors. Most believe a short sale is stressful, difficult, and time consuming. The worst thing you can do is sit back and wait. How much money do you need to start the process? Nothing, zilch… There are no upfront fees paid by you and we urge you not to move forward until we educate you entirely on the Short Sale Process. We are paid by your mortgager upon successful closing of the short sale in the form of a real estate commission. Our work is on a contingency basis. If we do not successfully close your short sale, we do not get paid. But again, your lender pays all fees and closing costs.
Once you go 90 days delinquent on your mortgage, a Lis Pendens is filed, which is basically a lawsuit issued by your lender to you. What many do not know is that the sooner you address the delinquency, the more your lender will be incentivized to work a deal with you. Believe it or not, the bank is on your side in some way. The longer the home is in default, the more money the lender loses, therefore if you work with them through the assistance of a realtor and attorney, your chances of deficiency judgments significantly decrease. Keep in mind your lender loses much more money on a foreclosure than on a short sale, so in most cases a short sale is in our favor.
There are a few requirements needed to begin the short sale process:
1. Hire New Jersey Real Estate Guys / Weichert Realtors. We will give you an idea what the fair market value of your home is. This will give us a benchmark as to how to approach the beginning stages. We will form a simple team. Us, an attorney, and most importantly, you! FYI, you will be required by your mortgager to engage in a listing agreement with a licensed real estate brokerage, such as Weichert Realtors.
2. Your lender will require some documents to begin the process:
-Hardship Letter – We can provide you with a template. This will outline your current hardships justifying the need for a short sale.
-Financial Worksheet – This outlines your assets, liabilities, and expenses
-TWO most recent income tax returns
-TWO most recent bank statements. All pages must be included.
-TWO most recent pay stubs from work
-Third Party Authorization – This will allow our team and the attorney to discuss terms of your mortgage with your lender on your behalf.
-A listing agreement through a licensed real estate brokerage such as us at Weichert Realtors.
Once all of these are provided, we will actively pursue a buyer for your home. Once we/you agree to terms with a prospective buyer, the contract is sent to the attorney. The attorney will draft a preliminary settlement statement outlining what your mortgager’s net proceeds will be upon sale.
3. Please keep in mind that without these documents, your short sale process will not be acknowledged by your mortgage provider. Everything must be complete and we are here to guide you through this process. A one hour free personalized consultation with us will detail what needs to be done to simplify. Additionally, our attorney provides an online portal where you can see daily updates on the progress of your short sale. This is very beneficial to you as an “update” tool.
Once all of these documents are provided to your lender, our negotiations with your mortgager kick into high gear. It is important to us that you are aware of everything going on and our current and past clients truly appreciate being kept in the loop instead of being kept in the dark during this process. Our tireless efforts will give you the best opportunity to execute your short sale. Daily calls with your bank will be made to ensure that the file is being pursued. Without a tireless effort or efficient team, lenders have the reputation to lose files, forget things, transfer your file to other departments, etc…. We make sure this does not happen which will ultimately protect you from foreclosure.
A Short Sale can have income tax ramifications. For one, your lender has the ability to 1099 you the difference between your payoff and your short sale amount. For instance, if you owe $500,000 and your short sale executes for $400,000, the $100,000 deficiency can be taxed to you as income leaving you with a tax liability. Over the last 3 years, we have been able to negotiate most short sales WITHOUT the lender issuing you a tax liability. Depending on the mortgager, we have also been able to negotiate the lender paying for your relocation expenses up to a certain amount.
So if you are a homeowner curious to what short sales are, it is NOTHING to be nervous about. Simply consult with us to understand your options. We are here to offer assistance and solutions. We take the time consuming details out of the equation for you which in the end will provide you with the relief you are looking for. Weichert Realtors has been operating since 1969 and New Jersey Real Estate Guys is Northern NJ’s most trusted real estate teams.
Please e-mail us here or call me direct at 877-688-7582 to schedule your complimentary personalized consultation. Let’s come up with a plan and get you out of your hardship!