Why Are Short Sales Happening?

The Real Estate market is certainly down from the highs of just a few years ago. In many towns, and also here in Bergen County, there were excessive appraisals done. Meaning that there really was no solid basis for the value of a home except for the fact that someone was willing to purchase it. You had a willing homebuyer and a willing mortgage company to make the loan. The criteria for underwriting the loans was considerably more liberal. Some folks took the teaser rates, some as low as 1% for a fixed period of time. Now those Adjustable Rate Mortgages (ARMs) are coming due. A person may have been financing their home for $2,000 a month and now with their mortgage resetting they may be faced with a $8,000 or $10,000 a month payment. They simply can't afford the house they currently own. In some areas home prices have depreciated significantly. The question to ask is did they really come down that much or were they inflated through the aggressive loan programs and appraisals?  This short sale information is meant to give you a better understanding into why we are in this current situation and why it makes sense to participate in a short sale.

Take a look at the links to the left for more information on Short Sales and feel free to call me, Sal Poliandro, Bergen County Short Sale Specialist, with your real estate questions.

Salvatore Poliandro
RE/MAX Properties
Office: 201-825-6600 ext. 335
Cell: 201-259-2187

Check out my website: www.salanddawn.com!

You can find great local Ridgewood, New Jersey real estate information on Localism.com Bergen County Realtor, Sal Poliandro, SRES, ePRO, Short Sale Specialist is a proud member of the ActiveRain Real Estate Network, a free online community to help real estate professionals grow their business.