Short Sales On Long Island New York

Short Sales On Long Island New York

Short Sales on Long Island, New York
One needs to understand what is meant by the concept of short sales. The term short sale is used for those properties which are sold for an amount that is lower than the balance still pending on the mortgage loan. These transactions involve such properties as those that may be facing rough underwater times, undeveloped land or even a unit in an apartment building.

Also the property can be considered for a short sale when the price that is acceptable for it is higher than the mortgage value. However, the aspect that makes the home be considered as a short sale is for the fact that the price which can be accepted may not be sufficient to cater for closing costs or any other charges that may come into play. Short sales on Long Island, New York also cover those properties which may be having two mortgages. The amount of money for which the property is sold is high enough to completely pay off the first mortgage. However, this amount may not be sufficient as to cater for the second mortgage as well. Basically, when there is a deficit in the amount paid and which may imply that the closing may not be successful, the term to be used for the property is short sale. When the bank analyses a given piece of property, it will not automatically be assumed to be perfect for a short sale. The bank needs to approve to give a property the short sale grant. However, it needs to be understood that the bank is not bound by any obligation to make this short sale grant. The bank will definitely give the grant depending on what it perceives its interests to be. The institution will make such a decision based on whether it sees the prospect of making a tidy sum of profit from the short sale or if it is better to proceed with a foreclosure.

There have been estimations that the bank that chooses to go the short sale way can make a saving of about 30% based on costs of foreclosure. This then shows why many banks will favor short sales on Long Island New York. However, there are a number of conditions which may make it a better bet to foreclose.

The role of the estate agent in short sale transactions A short sale transaction will be mainly handled by a real estate agent who has a lot of experience along this line. There are a number of things which will be required if the transaction is to be carried out successfully. The first of these things is definitely the home that can be considered to be underwater and is having problems with the payment of the mortgage. However, for a short sale label to be placed on a given property it may not always mean that property was undergoing hardship in mortgage payments There is also need for a bank that is willing to oversee the sale of the property. The seller whose home is going to be sold will also be needed to be around. The property owner is probably the one facing hardship in terms of payment of the mortgage.

The sale will not be complete if there is no willing buyer of the property. Hence, for a successful short sale on Long Island, it is obvious that there needs to be a person who has an interest in the home. The role of the real estate agent in transactions involving a short sale is usually very important. He/she is primarily the person who is charged of placing the property on the market. This is where some of these agents get it wrong. There needs to be a stringent qualification process for the seller of a short sale which some agents may ignore. This may later bring problems with the bank. Some agents who are not very well qualified may also place a very high price tag on the short sale. This will definitely not be a good thing for the bank which may even decline it. The real estate agent also needs to determine the type of short sale it will be. There are quite a number of short sales and it is definitely a good move to determine which one it will be. There are those sales that can be termed traditional short sales, Fannie Mae HAFA’s or regular sales. There are indeed some more types of short sales.

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Phone: 631-561-8237
Dated: May 13th 2013
Views: 793
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