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 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
With 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*