Short Sales on Long Island,
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.
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.
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
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.
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.
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
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.
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
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.
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.
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.
Author:Dov Silberman Phone: 631-561-8237 Dated: May 13th 2013 Views: 588 About Dov: ...