If you’re facing foreclosure there are viable options to get a clean start much faster. Let's face facts, lender are in the business of making money on the money they lend you. Lenders are not in the business of foreclosing on properties only to have those homes sit in their REO (Real Estate Owned) portfolio. Foreclosure proceedings are also very expensive.
So if lenders are not in the business of foreclosing on homes why do they foreclose? Simply put, they have no other alternative but you do. A great alternative to having your home foreclosed upon is a short sale. Simply put a short sale will allow you to sell your home for less then what's owed. Why would a lender allow this to happen? Well, the bottom line is that the lender stands to lose money regardless if they foreclose or accept a short sale but the lender is looking to minimize the amount they stand to lose.
If you are in facing foreclosure do to job loss, predatory lending or other reason looking into a short sale causes you no harm. Short sales are not the easiest thing in the world to do for many but rather easy if you are working with the right people. Who are the right people? Let's take a closer look.
New York (N.Y.) Real Estate Broker - You will need to list your home with a real estate broker in order to prove to the lender that you are not only attempting to sell your home but attempting to sell your home at fair market value, especially if the fair market value is much higher that what is owed on the mortgage. Think of this way....why would a lender accept a loss on a mortgage if they know that you haven't attempted to sell your home? Simply put, they won't and showing the lender a listing agreement with a real estate broker will help your cause. Also, real estate brokers may have clients who are willing and able to purchase short sale properties are looking for the right deal. Your home may be the right deal.
Purchaser/Buyer - Before a lender will even think about taking a loss on the mortgage they will require that not only have you attempted to sell your home at fair market value, but that you also have a party that is interested in purchasing your home. You will prove that you have a party that is interested in purchasing your home with a sales contract. In addition to the sales contact the lender will require a down payment to be made at the time of contract signing.
New York (N.Y.) Short Sale Negotiator - You will need a person or company to negotiate with the lender on your behalf to accept the short sale. However, as the short sale market has been increasing, especially in the New York City area, there are companies that are attempting to collect "consulting fees" from homeowners in distress. There is no need to pay a company prior to them doing anything. A real estate attorney will collect his or her fee directly from the lender. By working with a real estate attorney who specializes in short sale negotiations he or she will also help you complete and gather the necessary documentation that you will need to have your short sale go through. Then again, if the real estate attorney does not feel you have a good case for a short sale, he or she will not accept the case.
Let's take a look at a short sale example. Let's say you have a home worth $450,000 but owe $390,000 on the mortgage. You sign a listing agreement with a real estate broker to sell your home for $450,000. However, after a month on the market your home is still not sold. The real estate broker then lowers the listing price to $425,000 but yet again no offer. The real estate broker again lowers the listing price to $400,000 and now potential buyers are interested in purchasing your home. However, the highest bid your real estate broker receives is $350,000 which means that after paying your New York State and City transfer taxes, and real estate commission you will not have enough money to satisfy the mortgage. This is one possible short sale example.
In the alternative, a short sale will be much easier to complete if you owe more on the mortgage then the home is actually worth. Again using the above example, let's now say that your home is worth $450,000 but you owe $490,000 on the mortgage. No one in their right mind is going to pay your more than what your home is worth. If you cannot afford the payments on the mortgage, for whatever reason, you obviously cannot sell the home for fair market value as you are already upside down in the amount of $40,000.
Having your previous mortgage report to credit as "settled for less then full amount" as opposed to "foreclosure" will allow you to get your credit standing and life in order much quicker. Let's face fact, things happen in life that are often times out of our control. Losing a home to foreclosure is happening across the country. There's no need to feel bad about it but if you feel a need to get it all behind you sooner then later here's why you should contact me.
Although I am a
New York mortgage broker, I'm also a licensed
New York real estate agent with Diverse Real Estate Corp. in Middle Village, Queens. My mortgage broker, James Turano has been in the real estate industry in New York City for over 25 years. We have potential buyers that are willing and able to purchase your home via short sale should we not be able to sell your home at fair market value.
We also work closely with a real estate attorney firm that specializes in short sale negotiations. As I wrote earlier, the lender will be paying their fee.
If you would like more information on New York (N.Y.) short sales, you may contact me at any of the following numbers.
New York Mortgage Broker - Anthony Torres of Diverse Funding Solutions, LLC (917) 650-6042
New York Real Estate Agent - Anthony Torres of Diverse Real Estate Corp. (718) 669-7007
I will provide you with a no cost in home or telephone consultation.
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