Nathan Colmer | The Van Dyk Group
C: 609.290.4293 | O: 609.492.1511
Learn about Long Beach Island short sales & foreclosures, the LBI NJ real estate market and the Long Beach Island area. Short sales represent a rather small percentage of the real estate market on Long Beach Island but under the right circumstances they can be excellent opportunities.
A short sale is very simply a property that has a mortgage greater than the current value of the house. In this unfortunate situation, the seller of a house has taken out loans, in the form of a mortgage or home equity line of credit, that has a balance in excess of the current value of the property after all the settlement expenses are paid. The difference in the balance of the loan compared to the value of the home must be either forgiven by the lender or paid by the seller at the time of closing. In a market that is heavy with short sales and foreclosures, short sales can be an indication of a highly motivated seller, as the lender may be willing to negotiate a loss rather than foreclose on a property. In addition to short sales, there are also:
Every situation is different, so it is important to understand what will be involved with the bank before getting involved in the transaction!
The LBI real estate market has not seen the dramatic fall in property values that many other real estate markets across the nation have experienced. Likewise, the LBI market is somewhat shielded from distressed properties because Long Beach Island is mostly second homes that have the unique ability to turn into profitable rental properties. In many cases, homeowners that have encountered financial trouble are able to wait out the economy by putting their house on the summer rental market and use the income generated to help cover all or part of their expenses. While it is certainly a good idea to explore the option of a short sale, limiting your LBI real estate search to ONLY short sales can limit your ability to find the right kind of property. There are many excellent properties for sale on LBI, and many of them have very motivated sellers. By exploring traditional real estate sales and taking advantage of the number of properties listed for sale, a buyer can often get a better investment! In addition, short sales can take a very long time to close due to the seller and the bank having to agree to accept a loss on the property. Long Beach Island has a short summer season. For you to have the most enjoyment from your new property, the timing of your LBI real estate transaction should coincide with the summer season. If you have entered into a contract for a short sale and the deal is delayed, you may risk losing some of the summer!
Review a list of homes that are either currently listed for sale as short sales, foreclosures or bank owned real estate on Long Beach Island. Please note that I keep this list as up to date as possible but the circumstances of a homeowner are always changing and not all homes shown on this list will end up for sale in the LBI real estate market.
Read a basic overview of how a short sale works and what is involved on the part of the buyer and seller.
While many buyers think that a short sale or foreclosure is the best value in the LBI real estate market, there may be other opportunities to buy a home that make more sense. Under the right circumstances a distressed sale may be a wise move...but a buyer should keep his or her options open!
Many buyers and sellers are surprised to hear that short sales, bank owned homes, foreclosures, and other distressed properties make up such a small percentage of the market. Of the roughly 500-700 properties for sale on LBI, there are usually less than 10 or 15 short sales, foreclosures, and bank properties on the market at any time. While there are distressed homes for sale in all areas of the LBI real estate market, Ship Bottom can tend to have a higher concentration of these homes. Part of the reason LBI did not see the massive wave of short sales as seen elsewhere around the United States is because homes can be rented during the summer rental season. This rental income can help to stave off foreclosure and keep home prices stable. However, for homeowners who are depending on this rental income to pay the bills, a weak rental season can make the winter months difficult to cope with and may result in a distressed sale.