Short Sale Information - Why are short sales happening?

Why are Short Sales happening? The Real Estate market is certainly down from the highs of just a few years ago. In many towns and also here in Bergen County there were excessive appraisals done. Meaning that there really was no solid basis for the value of a home except for the fact that someone was willing to purchase it. You had a willing homebuyer and a willing mortgage company to make the loan. The criteria for underwriting the loans was considerably more liberal. Some folks took the teaser rates some as low as 1% for a fixed period of time. Now those Adjustable Rate Mortgages (ARMs) are coming due. A person may have been financing their home for $2,000 a month and now with their mortgage resetting they may be faced with a $8,000 or $10,000 a month payment. They simply can't afford the house they currently own. In some areas home prices have depreciated significantly. The question to ask is did they really come down that much or were they inflated through the aggressive loan programs and appraisals. This is part one of a four part blog. This short sale information is meant to give you a better understanding into why we are in this current situation and why it makes sense to participate in a short sale. Stay tuned for part 2 ... Why would a homeowner participate in a short sale?

For more information on Short Sales, New Jersey Homes for Sale, Bergen County Real Estate or any other topic,

call Sal Poliandro, Realtor, ePRO, SRES at 201-259-2187, or visit our website: http://www.salanddawn.com/

Sal can be reached by snail mail at RE/MAX Properties 81 North Maple Avenue Ridgewood, NJ 07450