Short Sale Bergen County, NJ

Understanding A Short Sale In Bergen County, NJ

When debts kept piling up, and homeowners seem unable to find a way to meet their mortgage obligations, frustration sets in which could be very destabilizing. Most homeowners usually want to find a way out of their mortgage when they are getting behind with their payments and the mortgage seems to be worth more than their property. With new lenders and banking rules in New Jersey, a short sale is the easiest and most convenient way out of a mortgage for a cash-strapped home owner.


A short sale is a process in which the homeowner sells the property for a value that is less than the original amount of their current mortgage in exchange for the bank writing off the loan balance. A short sale makes it possible for a property owner to disengage from future mortgage payments legally. Even when a foreclosure process has started, a short sale agent with good experience about New Jersey real estate can still negotiate a short sale successfully on the owners’ behalf.


When the homeowner can find a good real estate agent to negotiate the process of a short sale, no cost would be incurred during this process. In New Jersey, the banks or lenders are responsible for paying the fees of a short sale agent which is paid out of the closing proceeds.


Choosing an Agent

The first step in the short sale process in New Jersey is to choose a licensed and experienced agent, who will assess the property and the owner’s financial situation before drawing out a clear short sale plan that would be acceptable to the lending bank. The agent would advise the owner on the necessary documentations needed to start the process.


Your short sale agent will be responsible for the listing of your property. Most of the time, the property is listed at a value that is less than the loan amount. Your agent will guide you through on how to fill the short sale application and how to obtain the necessary documentations. Some of the documents you may need to provide during a short sale process in New Jersey include:

  1. Tax returns of the last two years
  2. Current pay check receipts
  3. Two tax month’s bank statement
  4. Mortgage Statement

Offer Acceptance

This is where the experience of a good agent comes into play. The duration of the process of a short sale depends largely on many factors. One of these factors is how long it takes to receive an offer. A good and versatile New Jersey agent would have a huge contact base that makes the process faster and easier to get a good offer. A good agent should be able to get an offer that does not require any repairs on the property.

Negotiation with the Lending Bank

After the acceptance of an offer, your short sale agent will draft a contract. Along with all necessary documentations, the agent would submit everything to the lending bank for consideration. Before the bank submits your application to underwriting for approval, they will send an appraiser to the property. If the bank agrees during the negotiation process, they will issue the owner a short sale approval letter stating the amount they eventually will settle for. A short sale approval means you are no longer responsible for mortgage payments and that your remaining loan balance has been written off.

After the coordination of the closing process by your agent, you are now free from the mortgage and debt.


While foreclosures will continue to appear in one’s credit history, a short sale will not. Avoiding foreclosures will also improve the employment chances of the owner when a would be employer runs a credit history check.

A seller may also be eligible for compensation to assist with relocation expenses. Your agent should be able to find out if you have any benefits financially from the closing proceeds.

Contact Us

How may we assist you?

Get personal assistance from Carlos Espinosa. Carlos Espinosa is a licensed Real Estate professional.

Carlos Espinosa
Home 201
Phone: (201) 320-8434
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Short Sale Bergen County, NJ