What Hamilton NJ Sellers Need to Know about the Short Sale Process

Our real estate inventory in Hamilton NJ has, unfortunately, a large number of distressed properties on the market, either bank-owned homes or short sales.  A short sale is when a seller must sell their home and the value of the property is not sufficient to cover the balance owed to the existing lender. In order to accomplish this, the seller must work with their existing lender(s), and any other lien holders, to request approval of the sales price, the sale terms, and payoff of their loan to be at a reduced amount.  Here is a brief primer on the process.

• The owner or their agent/negotiator must contact the existing lender.
• The lender will direct them to their website, or will advise how to obtain specific forms, instructions and lender requirements.
• This group of documents, along with the lender’s financial forms (Short Sale Package*) is then sent to the lender as per the lender’s instructions.
• After the lender receives the package it is then assigned to a contact person in the lender’s Loss Mitigation Department. This process can take anywhere from two weeks to two months and sometimes even longer.
• At this point the Loss Mitigation Dept reviews the package, and contacts the homeowner to request any additional items that may be required. This request is usually made verbally to the homeowner or negotiator but can sometimes be found via the lender’s website.
• The lender will then request a Broker’s Price Opinion (BPO) from a Realtor chosen by the lender.
• Once the lender has received the BPO as well as the Short Sale Package, they submit it for final review. When the lender has completed their final review, they may give approval "as is" or the approval may be subject to changes, such as sales price or terms. Or the lender may decide that the seller did not have ample reason for the short sale and therefore deny the request for the short sale.

The *Short Sale Package can consist of 100 to 200 pages including, but not limited to, the following items:

1. Listing Agreement
2. Short Sale Addendum
3. Offer to Purchase
4. Proof of Buyer’s funds
5. Owner’s Tax returns
6. Paystubs
7. Owner’s Bank Statements
8. Hardship letter from owner (explaining why the short sale is needed)

Every lender and situation is unique.  Short sales in Hamilton and, indeed, all of Mercer County, NJ, are complicated and require a professional at your service.  You need an experienced Realtor representing you who will guide you through the process and make sure you are kept informed.  I have the knowledge and New Jersey experience to help.  Remember, you have options to foreclosure but contact me now if you are having problems paying the mortgage on your Hamilton NJ home.

Joe Giancarli, Sales Associate
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.newjerseynewhomes.blogspot.com/