New Jersey couples who are getting divorced and deciding what to do with their marital homes have a few different options available to them. In many cases, one spouse wants to remain living in the home, often to provide ongoing stability for children. In this case, that spouse may need to buy the other spouse out or cede other assets that essentially do that. If that is not possible for whatever reason, the couple may choose to sell the home. When a home's current value is less than what is owed on the home, a short sale may be required.
Bankrate notes that a short sale can be beneficial for people who could potentially be facing foreclosure and are unable to continue to afford a home. However, due diligence will be required in order to receive approval of a short sale from the lender. Comparative property prices will still come into play in this decision.
As explained by Bank of America, homeowners will not be able to sell a home without a licensed agent when doing a short sale. The agent is the person who will make the official request to the bank to approve the sale amount. This can only be done once an offer from a potential buyer has been received. Just as with negotiations between buyers and sellers, banks may counter an offer as well.
If a couple has a home equity loan or other line of credit tied to the home, a release of any such lien will be required as well before a short sale can be approved and completed. While short sales may be complex, they may allow divorcing couples to get out from under difficult situations and move forward after their divorces.
