Homeowner Distress in New Jersey- Short Sales

It's 5:00am in New Jersey on a beautiful day in January. I am a full time Real Estate professional at Century 21 Crest Real Estate in Pompton Plains, NJ where I have worked for over 22 years. I am the Sales Manager of the office and am also active in listing and selling Real Estate myself. That is possible in our office as the Broker, Pat Wojtyszyn, is at the office daily and the management responsibilities are shared in addition to a wonderful and knowledgeable support staff. I find I am getting up earlier and earlier to accomplish all that needs to be done in both my business and my personal life. As I sip my first cup of coffee, I start to mentally engage and begin to review some of today's tasks and obligations. On that list, of course, are activities to service my current listings, one of which is a "Short Sale" situation. I then remember listening to the news last night and becoming increasingly concerned about the possibility of so many foreclosures in our area. I realize the day is not so "beautiful" for everyone.

Homeowners who purchased their homes in the Pompton Plains and surrounding areas of New Jersey at the peak of the Real Estate Market, in 2005, and who have a mortgage that is not a fixed rate type, can find themselves in some trouble this year. The percentage rate of their adjustable rate mortgage may be adjusting soon to a payment that is no longer affordable.

What was the realization of a life time dream home ownership, may become the worst nightmare ever imaginable for many people.

Pompton Plains and Wayne area homeowners faced with a high mortgage payment they cannot afford and a home market value that is below what the principal amount owed on their mortgage are in serious trouble. At first, they struggle to meet their payment obligations by not paying other bills, borrowing from credit cards or family and then... the money runs out... No amount of extra hours at work can cover those bills that are due at the end of the month. What was a happy life, becomes troubled, stressful and in some cases cause for despair.

There is no easy way to remedy a situation like this, but I just want to let you know, if you are in this situation, that there is light, happiness and a plan to be followed to get you out of this situation.

Myself and other Professional agents in my office, offer professional counseling and consultation, free of charge, to analyze your situation and help you develop such a plan. One of the first things I will probably suggest you do, is contact your lender to see if your mortgage terms can be negotiated to an affordable rate.

If the lender will not negotiate and/or cooperate, you may need to sell your home. You might be saying: I can't! My house is not worth what I paid for it. I owe more than my house is worth. This is a common situation now. But, if you cannot afford your payments, and are already behind several months with the bank, the dreaded foreclosure process may already have started. Through thoughtful and organized steps, I will help you through what is known as a short sale of your house. This is when the bank accepts less than what is owed on the loan. Your home is listed for sale at the proper market price, with the sale subject to the mortgagee (your lender's) approval. When an offer comes in, it is presented to the lender (your mortgagee) along with other paperwork. The Lender, if agreeable to entertaining a short sale, and believe me, most are very open to this now, will evaluate the information and will send out an appraiser to your house to determine the value of "their" asset, your house. Eventually, terms are worked out, the contract is accepted and the closing takes place. I can explain the entire process to you more thoroughly and if you are interested, please contact me. Throughout this process, we will be addressing such things as where you will move to when you close (perhaps a rental home), how this "short sale" will affect your credit and tax situation, and how to look towards the future when you can buy another home. That is possible, and will not take as long as you may think, maybe just a few years, or sooner.

Please contact me via e-mail at mcepi@aol.com, or my office direct line 973-686-7423 if you would like more information, or would like to set up an appointment to discuss your situation.