Short Sales, Foreclosures and Bank Properties

Short Sales, Foreclosures and Bank Properties are what are known as distressed sales. In other words, there is a high degree of motivation to sell the property due to financial distress. Short sales tend to be the most common of all distressed property sales in the Southern Ocean County real estate market. A short sale takes place when a property is sold for less than the current balance of the mortgage. For example:

• 123 Any Street was purchased in 2006 for $300,000 and has a mortgage balance of $250,000
• The market dropped and now the property is only worth $200,000
• When the property is sold, there is a $50,000 deficit between the sales price and the mortgage balance
• The bank must agree to sell the property short (short of what is owed which is where the term short sale comes from) and accept a loss on the transaction

When a property enters foreclosure the bank or lending institution has already begun the process of reclaiming the house. It is at this stage that many homes can sell as the bank wishes to avoid to entire process of foreclosure (as it is very expensive and banks are generally not interested in holding their assets in real estate).

A bank property is a property that is owned wholly by the bank. Typically, a bank owned property will be in somewhat better condition than a short sale or a foreclosure as the bank will contract with a property manager to make basic repairs and restore the property to a "sell-able" condition.

Regardless of the distressed sale, negotiations will take place primarily with the bank as they must approve the transaction. Short Sales, Foreclosures and Bank Properties in the Southern Ocean County Real Estate Market can indeed prove to be excellent values but they can be in a poor state of repair which must be factored into the total cost of buying a house.

Short Sales, Foreclosures and Bank Properties

The Southern Ocean County real estate market offers some opportunities for those looking to buy a Short Sale, Foreclosure and Bank Owned Property. Listed below are some properties in Barnegat, Barnegat Light, Beach Haven, West Creek, Little Egg Harbor, Long Beach Twp, Waretown and Manahawkin who are currently listed as distressed properties.

For more information about Short Sales, Foreclosures and Bank Properties be sure to check out our real estate blog and the articles highlighted below.