Real Estate Attorney in Morris County NJ
NJ Short Sales Attorney  

A short sale is when a bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the mortgagor. This negotiation is all done through communication with a bank's loss mitigation department. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender in full satisfaction of the debt. In such instances, the lender would have the right to approve or disapprove of a proposed sale.

Extenuating circumstances influence whether or not banks will discount a loan balance. These circumstances are usually related to the current real estate market climate and the individual borrower's financial situation.

A short sale typically is executed to prevent a home foreclosure. Often a bank will choose to allow a short sale if they believe that it will result in a smaller financial loss than foreclosing. For the home owner, the advantages include avoidance of having a foreclosure on their credit history and the partial control of the monetary deficiency. Additionally, a short sale is typically faster and less expensive than a foreclosure. In short, a short sale is nothing more than negotiating with lien holders a payoff for less than what they are owed, or rather a sale of a debt, generally on a piece of real estate, short of the full debt amount. 

 

 

 

 

 


Our Montclair Office
The Law Office Of Martin D. Eagan
33 Plymouth Avenue
Montclair, NJ 07042
Marty@martyeagan.com
Our Somerville Office
The Law Office Of Martin D. Eagan
43 West High Street
Somerville, NJ 08876
Tel.: (908) 526-2507 | Fax: (908) 450-1109
Wayne@martyeagan.com
Our Morristown Office
The Law Office Of Martin D. Eagan
52 Maple Avenue
Morristown, NJ 07960
Tel.: (973) 898-7300 | Fax: (973) 734-1903
Marty@martyeagan.com