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Recently, I signed a contract to purchase a home in New Jersey. A week before the closing my lawyer called to say that the closing must be postponed due to a “seller issue.” Now it comes out that the seller must apply for a short sale. None of this was brought to my attention prior to the signing of the contract. I have already spent a lot of money on homeowners’ insurance and the house inspection and must wait indefinitely for the closing. Is there any recourse I can take against the seller for his dishonesty and the loss of money? Also, how can I work to speed up this process? My main concern is moving into the home as soon as possible.

3 Thoughts on Is there any way to speed up the process of a short sale in New Jersey?
  1. Reply
    February 12, 2014 at 10:11 am

    There is nothing you can do. It is up to the original lender, who in reality owns the home,
    That is the problem in today’s market, delay delay and more delay.

  2. Reply
    February 12, 2014 at 10:34 am

    You should have checked out who the owner had a mortgage with, he can’t sell property until payments are current, and you the buyer have financing in place. Next time use a RE Agent with a viable property for sale in your time frame. Short Sales are a forbearance of original loan arrangements, and banks hate them, as it means that they’re losing money. Banks will take up to 180 days to process – and any snag will cause time frame to reset at the beginning. All you can do is file a small claims suit against the seller for the money he accepted and caused you to spend in an futile effort to purchase the house.

  3. Reply
    February 12, 2014 at 10:50 am

    You can’t assume the seller was dishonest. Most sellers are not sophisticated enough to know they have to apply with the lender to qualify for a short sale.
    And the Realtors involved were probably not privy to the seller’s financial situation.
    I can only advise patience – it will happen when the bank decides to accept the offer.

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