How a Short Sale Can Help You Avoid Foreclosure in NJ

Facing foreclosure can feel overwhelming, but knowing your options can make all the difference. One of the best alternatives is pursuing a short sale. Acting early gives you more control, protects your credit, and helps you move forward.

In fact, according to ATTOM, foreclosure filings in the U.S. surged by 6 percent in 2024, and many NJ homeowners who started the short sale process early avoided the full impact on their credit score.
Source: ATTOM Data Solutions

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What is a Short Sale?

A short sale happens when a homeowner sells their property for less than the amount owed on the mortgage, with the lender’s permission. The goal is to avoid foreclosure and lessen the financial impact.

When asking, what is a short sale in real estate, it’s important to know that this process involves negotiating with your lender to accept a payoff amount that’s “short” of what you owe. Though it may seem complex, with the right guidance, it’s an effective way to move on without the devastating effects of foreclosure.

Market Update

If you're considering selling or exploring your options, keeping an eye on current home values is key. Stay informed by checking the latest market trends here.

Best Practices in Short Sale

To get the best results from a short sale, follow these proven tips:

1. Act Early
The sooner you start the short sale process, the better your chances of approval—and avoiding foreclosure.

2. Hire an Experienced Agent
Work with a specialist who understands short sale real estate and knows how to negotiate with banks.

3. Communicate Openly with Your Lender
Honesty about your financial hardship helps lenders consider your request faster.

4. Prepare a Strong Hardship Package
This includes proof of income, hardship letters, and detailed financial statements. A well-prepared file is key for any short sale.

5. Be Patient but Persistent
Banks can take weeks to approve. Stay in touch with your agent to keep things moving forward.

Moving Forward with Best Practices

Navigating a short sale can feel complicated—but with the right support and a clear plan, you can protect your future.
If you’re unsure where to start or want to see what options are available, contact me today.

Also, be sure to check out our Mortgage Calculator. It’s a great way to explore potential payments and plan ahead for your next home.

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