Short Sales in New York City real estate???

By
Real Estate Agent with Douglas Elliman

 

We think this City is immune to what's happening in the rest of the country. Let's not kid ourselves.   We thought we wouldn't see many foreclosures and now we are told come January foreclosures are going up in the city, partly because the 90 day moratorium is expiring and partly because of job losses.  Yes, job losses and falling real estate prices will cause foreclosures.   What we haven't heard much of is Short Sales. This is now the norm in many parts of the nation.  Short sales in short are sales where the seller sells the property, the bank takes less than the loan amount, the seller gets no cash and the seller need not be in default of the loan.  The caveat is that the outstanding loan amount needs to be higher than the market value and the owner has no more equity in the property for the lender to consider a short sale.  There are of course a slue of requirements and conditions before the bank agrees to a short sale.

When I learnt about short sales, like every jaded New Yorker, I thought that's impossible here because we put down 20 to 30% on co-op purchases and often 20% on new developments.  So we cannot have zero equity and the market has not dropped where now loans are more than market value.  The reality is that buyers did refinance, took their equity out and spent it.  And now with prices falling, we can expect to see short sales coming our way.     

 

Taken from www.nakedrealestate.com

Comments (2)

Jason Ellis
Coastal REO Solutions - Myrtle Beach Short Sales & REO's - Myrtle Beach, SC

great start to AR -- Best of luck in 2009 and beyond -- JE

Jan 08, 2009 03:31 PM
Yvette Gardner
Keller Williams Realty, Spartanburg, SC - Spartanburg, SC

Welcome to the Active Rain community. This is a great site with lots of information.  Have fun with it and hope to see more of your blogs soon!  We have a team of three outstanding full time agents to assist your buyers and sellers in Spartanburg/Greenville, SC.  Let us know if we can ever help. Again, welcome to AR!!

Jan 09, 2009 12:04 AM