How to Buy a Short Sale or Foreclosure in South Jersey

Most people have heard many different opinions about short sales and foreclosure properties in South Jersey.  In today’s market, much of the inventory is dominated by these types of distressed properties.  For a seller, it is a hard and stressful process to go through, however, for a buyer, this could be a great opportunity to be able to purchase a home at a discounted amount in the perfect neighborhood you have always wanted to live.  There are many great towns in South Jersey that offer short sales such as Mount Laurel, Marlton, Medford and Cherry Hill as well as surrounding areas.

Buying a Short Sale in South Jersey

In South Jersey, there are many great properties available for potential buyers.  Coupled with today’s low interest rates, buying these types of properties can be a smart investment.  A short sale property is basically a listing where the homeowner owes more on the property than what the home is worth.  A buyer that purchases this type of property in South Jersey is going to get to pay less than what that current homeowner has already paid, so there is an automatic realized reduction right away.  Also, depending on other variables, such as the type of financing the buyer can do, they may have more leverage.  Most banks and asset managers are mainly looking for cash buyers followed by conventional financing first, then other types of financing second.

Buying a Foreclosure in South Jersey

In South Jersey, there are also many foreclosures for sale.  Foreclosures, also known as REO properties are the properties which have gone through the short sale process and the homeowner has lost the home and is now vacant, sometimes in major need of work.  These homes offer some of the biggest discounts, but with much work that needs to be done.  Many of these homes may be missing pluming, electric or are winterized.  Some lenders may want to back away from this type of loan depending on the work that needs to be done to make the home habitable.  These homes can be sold in typically 45-60 days, and often are purchased by investors.  Again, with banks, they do prefer to have the financing to be as much down as possible.  If you are comfortable purchasing this type of property you will see the biggest type of discount on these listings.

Protection when Buying a Short Sale or Foreclosure in South Jersey

Keep in mind when purchasing a short sale or foreclosure in South Jersey, you are entitled to make any inspections and tests that you feel necessary to have prior to purchasing the property.  Although you will not be able to ask for any repairs, as these are all “as is” condition properties, it is good to know what you are getting into prior to settlement.  Some properties in South Jersey have cosmetic problems, whereas others may have mold, termites or structural issues.  Many investors have dealt with these types of issues in a home, and many can be fixed relatively easily.  Being an informed and educated buyer is the best advice to give when dealing with these types of properties.

Where to find the Short Sale and Foreclosure listings

Most every property in South Jersey that is a short sale or foreclosure will primarily be in your local MLS or Multiple Listing Service.  By working directly with a realtor, he or she can give you the listings as they come to market so you can begin to narrow your search.  In addition to this, there are several sites that can give you information including foreclosure.com, realtytrac.com or njlespendis.com where you can get a 7 day trial on most, and can pay anywhere from $25.00-$50.00 for a monthly membership. These sites are dedicated to the properties that have been listed as well as the ones that may not be listed yet and are in a pre-foreclosure status.  However, most banks will assign these listings to realtors, so using the MLS is normally your best source of information and potential in getting a deal to settlement.

Ultimately, when purchasing a short sale or foreclosure, it is imperative to surround yourself with not as many resources, but as many educated resources.  Currently, there are many conflicting opinions and different theories on how to purchase these types of properties, that it is paramount to make sure that you are working with facts and not necessarily opinions!

Join our Facebook Group!

 

 

 

About Jessica JessicaHoltzman

has written 99 post in this blog.

Comments

comments