A recent check of sales data in Newark NJ show that Short Sales account for about 38% of all sales, with Foreclosures at 28% and traditional market sales lagging behind at just 34% of sales.Â In other words, distressed sales, which include both Short Sales and Foreclosures combined, make up about 2 out of 3 sales in Newark right now.Â This indicates a depressed market that ranks up there with the mostÂ devastated inÂ the nation, including the ones you hear so much about in California, Arizona, Nevada and Florida.Â
In some particularly hard-hit neighborhoods, such as the Clinton Hill Section, Lower Vailsburg, Fairmount and the Clinton Ave. & South Orange Ave. corridors, the numbers are skewed even more extremely toward Short Sales and Foreclosures.Â Prices in many of these areas have rolled back past the mid 2000's boom and are now approaching generational lows.
Short Sales and Foreclosures in Newark provide compelling opportunities for investors who have cash to put to work, and can either renovate these properties with the hopes of re-selling them or renting them out for income with very high rates of return on their cash.Â Â This helps distressed homeowners is by giving them an exit strategy that does not include Foreclosure or Bankruptcy.
The message is clear: if you are a distressed homeowner in Newark hoping that prices will recover and save your underwater home from Foreclosure, you need to take a look at the harsh realities of the market environment and come up with a different alternative to avoid Foreclosure.Â A Short Sale may be exactly the course of action you should take.
Homeowners in Newark NJ facing foreclosure can benefit from a Short Sale in several ways:
Â· You can avoid the stigma of being Foreclosed on, and, more importantly, the severely damaging credit consequences
Â· You can walk away from the home without owing anythingÂ more to your lender - no deficiency judgment in most cases
Â· You pay nothing in upÂ front fees; all fees to your Realtor, Attorney and other settlement charges are paid at closing by your bank
Â· You may be entitled to relocation fees, which in many cases average about $3,000 but in some instances can be as high as $20,000Â
Even if you have more than one loan - as many owners who had 80/20 loans or took out equity in the forms of lines of credit did - you can still potentially escape the burdens of your upside down Newark NJ home via a Short Sale as more and more second liens are being extinguished without any consequence to the borrower.
If you are a homeowner in Newark NJ facing foreclosure, it pays to speak with an experienced Short Sale Real Estate Agent who can educate you on your options, including Short Sale Strategies that can lead to approvals and the ability to get your financial house in order.