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East End Long Island Short Sales and Foreclosures

December 28th, 2008 category: East End LI Foreclosures

What can you expect when you make an offer for a “short sale”?

You can expect it to be anything but short.

A short sale is an offer to a lender in which the amount offered is below the amount owed to the bank by a seller. With declining market conditions, a seller who may have bought at “peak” (2005-6) on the east end of Long Island may now find themselves with a loan that exceeds the current value of the property. Add to this homeowners who improved a property by obtaining a second mortgage that is now “too much” to keep the property in line with current values, but forced to sell for whatever reason, and you’ll find yourself in the current bank abyss.

As the market becomes more focused, with the need to eliminate an excess of properties held by banks (with accompanying foreclosure costs attached) at the forefront, the hope is that banks will respond more quickly to a market that is in flux.

IF YOU ARE A SELLER on the North fork of Long Island FACING A SHORT SALE:

You’ll need to provide the bank with documentation. Here are typical requirements that will need to be provided to the bank before proceeding with a short sale request.

IF YOU ARE A BUYER on the North fork of Long Island THINKING OF ENGAGING IN A SHORT SALE OFFER:

You’ll need to provide to the bank your ability to qualify, and will be expected to WAIT. And wait some more

IT ABSOLUTELY SHOULDN’T BE LIKE THIS…BUT IT IS, FOR THE MOMENT.

For those willing to offer patience, short sales can result in closings, but anticipate a bumpy road. Often, a green light will be afforded, without mention of additional provisions/funds that will pop up before closing. Awareness that it isn’t smooth sailing is imperative- if you don’t like surprises, you might want to look at properties that have already foreclosed, or are market ready.

If you’re thinking of selling, and wondering about short sale opportunities, we’re happy to offer the answers that we have, and help you through the process.

If you’re thinking of buying a short sale, we’ll make sure that your understanding is complete.

If your interest is in bank owned properties, we stay on top of the market, and are happy to locate properties for you.

This entry was posted on Sunday, December 28th, 2008 at 12:34 am and is filed under East End LI Foreclosures. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.