Short Sales in Manhattan New York - New York Part 1

By
Real Estate Agent with Douglas Elliman Real Estate

 

Get the facts about Short Sales in Manhattan New York or short sales for anywhere in the state of New York. PART 1

 

Short Sale (New York City) was an unfamiliar term for us living and working in Manhattan Real Estate before last September 2008... Now, it is a term that the Manhattan Real Estate market are seeing more often... as oppose to the rest of the United States realtors have! Here are some basic knowledge of the short sale if you are not sure what it is.

Short Sales in Manhattan New York Definition: "For homeowners who can no longer afford to keep mortgage payments current, there are alternatives to bankruptcy or foreclosure proceedings. One of those options is called a short sale. When lenders agree to a short sale in real estate, it means they are willing to release their lien against the home for less than the outstanding mortgage balance (including default interest and penalties, etc.). Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose."short sale in New York city

Short Sales in Manhattan New York Pricing: When pricing any real estate listing especially SHORT SALE listings, an experienced short sale Real Estate agent must consider several standard factors:

  • Active & Current Listings (Competitions):  Similar properties for sale may be overpriced, since they have failed to sell
  • In Contract Listings: Properties under contract indicate what price entices a buyer to purchase
  • Sold Listings (in the last 2-4 weeks if possible): What price buyers were actually willing to pay
  • Expireds: What price was rejected by the market place

Short Sale New YorkWith a short sale, there is the final price, this is the price the short sale lender conclude AFTER receiving a purchase and sale agreement. This price can be the deal maker or deal breaker The lender price is based on a Broker Price Opinion (BPO) or appraisal.  This third-party opinion changes the game and actually may distort markets.  Unfortunately/Fortunately this price opinion may come from an agent with one year experience who has signed up on a website to perform BPO's.  The price opinion may come from one appraiser who does not know the exact market or inventory levels.  

Short Sales in Manhattan New York Timeframe: From the time a Contract is entered into to sell the home, the process should take no longer than 4 months. However, we have been known to negotiate short sales in as little as 3 weeks. All transactions are reviewed on a case-by-case basis so as to better advise the property owner what can expected. Things change often, rules change often in Short Sales. What a lender says is the way it is one day may change tomorrow.

It is very important to understand that the only time a lender will stop foreclosure proceedings is after a successful short sale negotiation. In other words, the lender will continue their efforts to repossess the home despite the fact that a homeowner has listed the home for sale or entered into a contract to negotiate a short sale. Again, it is only after the transaction has closed that the lender will abandon the foreclosure action.

So please read our series in order to better understand what a short sale is and how we will proceed on with the short sale. If you are thinking about doing a short sale in Manhattan New York city market,              call Eileen Hsu or Morgan Evans at (212)321-7122 for futher details and your confidential short sale intake evaluation.

Copyright © 2009 By Eileen Hsu, All Rights Reserved.*Short Sale in Manhattan New York - New York*  

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 ____________________________________________________________________________

 

Eileen Hsu 許雅嵐 (email: EHSU(@)elliman.com)

Our team specialize in Manhattan New York Condominiums, townhouses, and condops.

We are condominium residents ourselves so we understand the Manhattan New York condominium community. We also enjoy all Manhattan neighborhoods, especially Upper West Side, Lincoln Square, Midtown East, Murray Hill, Financial District, Chelsea, Fifth Avenue, Greenwich Village, Nolita and etc just to name a few. If you or you know someone that may be interested in selling, buying or leasing their Manhattan New York condo, call us today (917)837-8869 or (646)644-6929 and we can discuss your specific Real Estate goals.

Manhattan New York Condo Specialists or Chinese Speaking Real Estate Agent

 

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Rainmaker
300,475
Heather the Realtor Orlando, Lake Mary
LemonTree Realty - Orlando, FL
First Time Home Buyers, Bank Owned Homes

Great blog and very informative for buyers in the Manhattan area thinking about purchasing a short sale. Not always what they are cracked up to be.

Feb 12, 2009 12:33 PM #1
Rainmaker
1,759,998
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

I just got burned on a short sale so definately not what they are cracked up to be! But still a very useful post!

Feb 12, 2009 01:25 PM #2
Rainmaker
121,815
Sonny Kwan
Quantum Group Commercial - Residential - Lease Seattle, WA - Mercer Island, WA
206-819-8228

short sales are coming to NYC as well as REO, may as well be on top of it noe Eileen

Feb 12, 2009 05:32 PM #3
Rainmaker
223,854
James Angelo
Florida Homes Realty & Mortgage LLC - Jacksonville, FL

Short sales are not really short-  they should be labled long sales- they do take longer to negotiate - but they may be worth the time and effort for all involved.  We have noticed an increase in the number of approved short sales in Florida.  It is an important option available to sellers today.

Feb 14, 2009 10:33 PM #4
Anonymous
STEPHEN MANDEL

My son is looking for a NICE one bedroom condo or co-op in Manhattan.  Not to exceed $375,000 and maintenance and taxes not to exceed $900 per month.  He can put down over 20%.   No studio's.

May 18, 2009 02:37 AM #5
Anonymous
patrick kennedy

please can you provide me with information on any apartments that are either short sale or foreclosure in Manhattan, looking for a good deal, budget is not an issue so log as i feel that i am getting value. Ideal location would be Tribecca, SOHO, Greenwich. However i will be guided by your advice for a good investment. Ideally releatively low condo fees etc.

 

I look forward to hearing from you.

 

Kind regards

 

Patrick Kennedy

Jul 14, 2009 08:10 PM #6
Rainmaker
733,028
Eileen Hsu
Douglas Elliman Real Estate - Manhattan, NY
LICENSED REAL ESTATE SALESPERSON

Patrick,Please also read BUYER MUST READ for short sales series to understand the specific of Manhattan Short Sales.

I do not have your email or telephone contact number. Please send us an email at ehsu@elliman.com and we will get back to you. Thanks,

Jul 15, 2009 12:15 AM #7
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Rainmaker
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Eileen Hsu

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