Home Buying in New Jersey>Question Details

Lesabeth812, Home Buyer in Bayville, NJ

Is it possible in the state of new jersey to sell a home that has negative equity (short sale) and purchase a new home simultaneously?

Asked by Lesabeth812, Bayville, NJ Wed Dec 12, 2012

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9
You may be able to lease out your current home and purchase a new one. I would 1st check with a mortgage broker.
0 votes Thank Flag Link Mon Dec 17, 2012
Some lenders will allow you to do a short sale while you are paying mortgage on time. This way the late payments will not effect your credit. It depends on the investor also. I actually wrote a blog about this earlier this year.
0 votes Thank Flag Link Wed Dec 12, 2012
You can short sale now and buy now. Must be current you must move at least 35-40 miles from your current home and the home you buy must lesser value than what you currently have.

Need a mortgage rep that understand the process also.
0 votes Thank Flag Link Wed Dec 12, 2012
Hi Lesabeth812,

If you do a short sale, you will most likely not qualify for a new loan right away to purchase a new home - you may have to wait 2-3 years.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Wed Dec 12, 2012
You are welcome. You'll need a short sale attorney and a realtor familiar with short sales. Let me know if I can set you up with the realtor.
Thanks
Steve
0 votes Thank Flag Link Wed Dec 12, 2012
Thank you so much Steven...that points us in the right direction. I really appreciate your time!
0 votes Thank Flag Link Wed Dec 12, 2012
Ok. Got it. Many homeowners are going through the same thing, that bought around that time period. Your best bet is to hire a short sale attorney. The attorney will help you prove your hardship to your bank. Which is what you need to do. Now, financial statement will also be needed to show your bank that you can not afford the loss on your own. Most attorneys in the end are paid by the bank or their fee is built into the loss your bank would be taking. So you wouldn't have to worry about that. I do not service Bayville myself, but my company does. Please let me know if I can refer you to a local agent that can walk you through the process.
0 votes Thank Flag Link Wed Dec 12, 2012
It would be the first option you mentioned. We have lived in our home for the last 6 years and when we bought it it was just my husband and myself...now six years later we have three little ones and have completely outgrown our home. We bought in the height of the market and unfortunately now our home is worth approx $50,000 less than what we owe on it. We are current on our mortgage and have never missed a payment since we've owned the home. Just need more space but not sure how to accomplish this.
0 votes Thank Flag Link Wed Dec 12, 2012
There are 2 types of short sales. One is when you negotiate with your bank to take the loss on the property. This type of short sale can effect your credit. Therefore effect your ability to buy your next home. It's your best bet to consult with an attorney familiar with short sales. That I can recommend. As well as with an accountant. The other type of short sale would be when you have the funds to bring to the table to cover the loss. This will not effect your credit at all. What type of short sale would you be looking at?
Steve
(856) 905 2966 cell
0 votes Thank Flag Link Wed Dec 12, 2012
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