Long Beach Island NJ Short Sales in the LBI Real Estate Market
LBI Real Estate Short Sales
Short sales are in the news every day and many homebuyers assume they will get the best deal by looking ONLY at short sale properties on LBI. The truth is, Long Beach Island NJ Short Sales make up a very small segment of the LBI real estate market and in many cases, buyers on LBI will fair better by looking at both short sales AND the general sale listings. The LBI real estate market was impacted by the recent recession but was able to weather the storm better than many areas around the nation. Therefore, our market remained stronger and short sales are not as common but they do exist so it helps to understand them and how they can impact your purchase of LBI NJ real estate!
Types of Bank Sales on Long Beach Island NJ
There are several real estate transactions that fall under the general term of a “bank sale” and they all have different impacts on buyers and sellers. A few are:
- Short Sales on LBI
- Foreclosures on LBI
- REO Listings on LBI
- Auction Sales on LBI
Short sales occur when a seller owes more on his or her mortgage than the house is worth in today’s market. For example:
- Seller Tom has a mortgage balance of $500,000
- The sales price of the house is $350,000 after expenses and closings costs
- The balance of $150,000 must be eliminated by some method making it a short sale
- There are a number of ways to disperse the balance of the unpaid mortgage amount. Speaking in VERY general terms, the bank can simply forgive the balance, the bank can request the seller take back the balance as a new mortgage, the bank can forgive a portion of the balance and request the seller pay back the new balance, etc. Depending on the circumstances, short sales can have a very negative impact on a seller’s credit score and overall financial picture so it is important to speak with an attorney and/or an accountant.
Long Beach Island NJ Short Sales
Short sales on LBI do exist, but as I mentioned they are not common. Typically, we see about 60-80 properties on Long Beach Island NJ with some form of bank involvement (short sales, foreclosures, auctions, etc) at any time with a good portion of these properties left over from previous months. I publish a list of all bank properties on my website, www.BuyLBI.com, and update this list at least once a month.
If you are considering buying a short sale, there are a few things to remember.
- The highest offer does not always win! Sometimes, the terms are as important as price
- Removing contingencies will mean your offer is better received by the bank
- Almost all bank sales are “as is” meaning that any problems in the house will have to be fixed by you
Buying a Short Sale on Long Beach Island NJ
If you are interested in the LBI real estate market and would like more information on the area, short sales, or the real estate market in general, please contact me. I have lived in LBI NJ my entire life and I know the area and the real estate market very well so please do not hesitate to ask me any questions you have!
Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
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