Short sales are still a very prevalent part of the Central NJ Real Estate market. With uncertainty in the market and economy as a whole there are an increasing number of people out there that are strategically selling there home to get out from underneath the debts of high interest mortgages and negative equity in your home. Some believe that selling your home short is a failure, but in my opinion this can be a huge relief and can help in the long run for many bound by financial constraints of your homes mortgage.
While some were forced into this situation by purchasing their home at the wrong time, others were hurt by a number of outlying factors that forced them into financial hardships.
The Mortgage forgiveness act has been extended to January 2014! What does this mean for you. It means that it is time to sell your home. NJ homeowners will be forgiven from having to pay promissory notes if they sell before the year is over. (Your tax professional can give you the details on this, but this should apply to most.) The government has agreed that it is important to help those in trouble right now and taxing those who are already in dire financial straights will just hold us back as a community.
Many people have called it quits due to the economy. Some lost there jobs, and the hefty mortgages that they had were just too much to handle. Many of these people lost everything when they let their house to go, forcing them to start all over. Depending on how old each individual were this could be a devastating financial blow losing their NJ real estate holdings.
The others out there are now strategically selling there homes short and just starting over. Some people just bought their home in the height of the NJ Real Estate market and this has left them with a large sum of negative equity in their home. Between paying Principal interest, taxes, and insurance some have deemed that it would make more sense to simply stop paying, sell the home, and save the money that they would have been making toward mortgage payments.
Many homeowners are socking away what they would have paid and living in the home until it is sold. They are than going and renting a home and simply waiting until they can fix their credit again so that they can purchase again in the future. This time period of no payments can really help people put themselves in a much better financial situation by paying off debts that they were struggling to pay down, buying something that they may have needed to better help themselves achieve financial freedom, or just simply allow them to save money or fund a retirement account that was neglected. So not only are they relieving themselves from a huge financial obligations but also paying down debts and bringing themselves back to zero or even back in the black.
If you are among these people that short sales have helped than it is not a failure to sell your home. Many have been in your shoes and there are many more still in this situation. There are lots of buyers currently in the market to buy homes and with the shortage of inventory there are many that will be looking to purchase your home as well.
If you are considering making a strategic move it is important to always entrust your accountant, attorney and also your local broker to help you achieve your goals.