East End, Long Island Short Sales

March 14th, 2010 category: East End LI Foreclosures, Real Estate News

Corey Creek With homeowners having a need to sell, but a mortgage balance in excess of an amount that buyers are willing to pay (based on current home values), short sales are becoming more common on the North fork, and Hamptons, NY.

While complicated, short sales allow a seller to exit their mortgage obligation in favor of an offer acceptable to the bank, which may include a cash amount due at closing, and/or (unless provided as a contingency in the contract)

an amount due for a percentage of the difference between the amount owed, and the final selling price, often in the form of a promissory note.

SELLER HARDSHIP is a key element to a home purchase being permitted after a short sale has been initiated.

There has been much confusion regarding the credit ramifications of a short sale, but the Federal Housing Authority (FHA) has released their own guidelines with respect to the ability of sellers to buy another home, and the news is good.

The use of FHA loans on properties below the $720,000 limit (see parameters) have become increasingly popular, due to a lower down payment requirement, and qualifications that are often more lax than those of a conventional loan. The link that can be found HERE provides an answer for those selling “short”, with an eye toward another home purchase in the future.

To view homes for sale on the east end/North fork of Long Island, click HERE.

This entry was posted on Sunday, March 14th, 2010 at 9:52 pm and is filed under East End LI Foreclosures, Real Estate News. 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.

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