Buying a Short Sale or Foreclosure Property

Due to poor economic conditions and real estate market corrections over the last several years, buyers can find homes at more affordable prices than at the height of the boom just a few years ago. As a result of these conditions, short sale & foreclosure transactions have become much more commonplace in today’s real estate markets, overall.


Be aware: Buying a short sale or foreclosure will probably take more time than a traditional transaction involving the purchase of a new home or dealing with a seller who is current with their mortgage obligations. With third parties involved such as banks, lenders or any other lien holders, understandably the process is more time consuming. It takes longer to negotiate a price, approve an offer (or reject it) and ultimately finalize the transaction and close on the property.

It will certainly help if time’s on your side as it’s important to be able to exercise patience as a short sale or foreclosure buyer.

If you’re interested in purchasing a short sale or foreclosure property, you should:

  • Work with an experienced agent or broker who will help guide you through the step-by-step process and aid in negotiating with a lender on the purchase price for a property.
  • Be ready to supply proof of income and financial documentation in the mortgage pre-approval process. Recent lending standards have become more stringent and require additional time and documentation.
  • In the event your offer is accepted, the property will most probably be sold, “as-is”. This means that any improvements necessary, as well as any municipal inspections are the responsibility of the buyer.
  • As in any transaction, it’s imperative to obtain a thorough home inspection to assess the true condition of the property. Typically, in a short sale or foreclosure “as-is” scenario, any inspection issues are the responsibility of the buyer, but it’s important to know up-front what those issues, if any, may be.

Call POWER REALTY GROUP today!

(201) 489-3020

or email Brian Morgenweck (broker/owner)    Brian@TheJerseyScene.com

Jersey Foreclosure Scene is your free foreclosure information source for northern New Jersey.