What is a short sale?
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.).
Just as there are many different lenders there are just as many different policies governing the short sale procedures. The lenders all have their own criteria of what short sales they will accept. Just because your apartment falls in this category does not mean that every apartment will be approved for a short sale.
The next thing to understand for both sellers and buyers is that a short sale does take time.
Short Sales in Manhattan New York Timeframe: From the time a Contract is entered into to sell the apartment, 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.Why would a lender want to do a short sale in Manhattan in the first place? Well, sometimes the loss they will accept on a short sale is less of a loss than if they foreclosed on the property. Foreclosing is not a cheap process at all and in New York it is very time consuming. Most homeowners can keep the lender at bay for months and sometimes even over a year. At times the lender feels it is better for their bottom line to accept a short sale.
Not every homeowner is qualified to do a short sale in Manhattan and we will cover the criteria in the next post in this series: Short Sales In Manhattan. So stay tuned...
Disclaimer: This post is not intended to be or to provide legal advice. We recommend that you speak to your attorney and your tax accountant regarding specifics and to find out if this is the best option for you in your situation.
Copyright © 2009, All Rights Reserved. *Short Sales In Manhattan, New New York- What you need to Know If You Are Buying Or Selling.*
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P.S. If you are listing your home as a short sale in Manhattan make sure you hire an agent who knows how to do short sales and has the experience to get the job done. We are doing successful short sale packages. Call us at 917-837-8869 to find out more.
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Morgan Evans is a Manhattan New York Real Estate specialist in neighborhoods such as: Greenwich Village, Soho, Union Square, Upper East Side, Upper West Side, Chelsea, Midtown West, Midtown East, Nolita, Lower East side, Financial District in Manhattan. Morgan specialize in working with international buyer, high net worth buyers, parents buying for children and investors buyers. Contact him today by calling (917)837-8869.
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Hi Morgan - For some reason I thought of you today, so it was great to see your post. A financial news I was watching today spoke about the foreclosures in NYC. As Realtors one of the things we should do is to educate the buyers as well as sellers about the process, then the transaction can proceed smoothly.
Thank you publish this post and providing the short sale definition on here!
On the island we're seeing a large number of homes in these conditions.