New Jersey legislation is ready to shake up New Jersey short sales. A short sale occurs when homeowners owe more on their homes than they’re currently worth and become so frustrated that they choose to sell and walk away. A short sale can present a great purchase opportunity, but it can also quickly become complicated. New Jersey real estate legislation, however, is taking action, and the state recently amended its Fair Foreclosure Act to shorten up short sale timeframes.
The new legislation goes into effect on September 19, 2017, and it requires that servicers of mortgage loans respond within 60 days to all good-faith short sale purchase offers. An appropriate response from these loan servicers can include an approval, a denial, or a request for more information regarding the short sale. Further, if the loan servicer doesn’t either approve of or respond to the short sale offer within those 60 days, the potential buyer’s deposit (if any) shall be returned and that buyer will be relieved of any further obligation regarding the property purchase.
The New Jersey Fair Foreclosure Act has been further amended to more completely define a short sale as the sale of real property in which the lender or servicer agrees to release the lien that is secured by a residential mortgage on the property upon receipt of a lesser amount than is owed on the mortgage. In other words, the lender takes a financial hit but doesn’t have to foreclose, the seller walks away, and the purchaser can be financially incentivized by the deal. This amendment affects neither the loan servicer nor the debtor’s right to participate in either mediation or settlement negotiations pertaining to the short sale mortgage. A short sale can get complicated and can go long, but experienced real estate attorneys are here to help.
If You Are Thinking about a Short Sale Purchase, Call 201-498-9768 Today for More Information
Making a short sale purchase can be a great deal, but it can also be complicated and needs to be executed with care. The new real estate amendments to the NJ Fair Foreclosure Act could help make the process more transparent and, well, shorter. If you’re thinking short sale, you need an experienced real estate attorney to ensure that the complexities of your purchase are well managed. Your real estate lawyer will protect your interests and your rights as you make your way through the maze that is a New Jersey short sale. At John L. Schettino law, we have the skill, experience, and commitment to help you successfully execute your short sale purchase. Contact or call me at 201-498-9768 for a free consultation regarding your real estate transactions.