A Client of mind just emailed me and asked me to explain a short sale. I thought I would explain it here on the blog.
Basically the seller of a home owes more than what the house is worth. Maybe they bought the home recently at the height of the market or refinanced too many times and no longer have equity. Then the seller has a financial hardship, perhaps a job loss or illness, and can no longer keep the home. The short sale is a way to avoid foreclosure and sell their house without damaging their credit as badly as going though a foreclosure. The seller negotiates with the bank for the bank to take less money than what they owe.
The problem with the short sale is that so many people are in this situation and the banks are overwhelmed. It takes an average of 90 to 120 days to hear back if you offer is accepted. Plus the short sales are usually sold in as-is condition so even if the bank approves the sale you may run into a problem with the home inspection. Also many banks are now doing a loan modification instead of a short sale. So as a buyer you could be waiting for months only to find out that the bank will not approve the sale.
For my buyer clients I usually recommend avoiding Short Sales unless you are willing to wait a very long time and face disappointment if the deal does not go through.
Best wishes,
Matt
P.S. If you have any questions about short sales or any other real estate question please contact me or call me at 609-484-9890 ext. 132.
For home buyers with low to very low income the USDA single family housing direct loan program offers and incredible opportunity to own an affordable home.
Here are some of the details on this program:
Only certain cities qualify:
For Atlantic County, NJ
Borogh of Buena
Buena Vista Twp.
Corbin City
Egg Harbor City
Egg Harbor Township
Estelle Manor
Folsom Borough
Galloway Township
Hamilton Township
Mullica Township
Port Republic City
Weymouth Township
Eligibility requirements:
To be eligible applicants must meet very low and low income limits. This depends on the number of people in the household and the household income. For example a family of four in Atlantic County with $54,700 income would qualify as low income and $34,200 would qualify as low income. Moderate income would be considered $60,200.
The maximum loan amount is $249,600.
Subsidized Funds
Payment assistance is available to drop the rate to as low as 1% and currently the rate will not exceed 4.625%
For more details on this program, the $8,000 first time home buyer tax credit, or other financing opportunities, please call me at 609-484-9890 ext. 132.
Best wishes,
Matt
Matthew Haviland
Your Trusted Real Estate Expert For Life
The graph below illustrates how a loss on the sale of a home today can be made up by a gain on a higher priced home.
You see, many homes in higher price ranges have also dropped in value, creating an opportunity to buy at lower costs than were available before, resulting in a net savings.
Let's sit down and take a look at your specific situation. This may be the opportunity you have been waiting for!
Here is a list of FHA approved condos.
If you are interested in a condo that is not listed here please let me know as the list is subject to change.
Heathercroft
Bayport
Lakeside Estates
Oxford Village
Country Place
FHA approved condos will allow you to purchase the condo for as low as 3.5% down payment. Please contact me for other financing opportunities including no down payment loan options and grant programs.
Best wishes,
Matt
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I am a passionate, creative, well organized real estate expert. The Haviland Group's highly trained team works with home buyers, sellers and investors in Atlantic City and Atlantic County, NJ.
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