It’s been some time since a blog focusing on short sales has been on the site, but it’s becoming more and more apparent that we may be reaching a point where banks actually WANT to work with a short sale transaction.

The typical reaction from most to those two words- “short sale”- often elicit some expression of frustration- for the last several years, they’ve been a challenge.

Today, as I was reading National Mortgage News, short sale transactions captured two interesting headlines.  One was, “Megabanks Ramping Up Use of Short Sales”, and the other interconnected article was entitled “Why Are We Seeing Fewer Foreclosures?”.

Interconnected, because within the contents of the “Megabanks” article, was the following:
“With a huge pool of seriously delinquent loans in their pipeline, mega servicers increasingly are turning to  short sales as a way to skirt the foreclosure process and retire loans.”

For those unfamiliar, mega servicers are the large banks- JP Morgan Chase, Wells Fargo, Bank of America, Citibank, and a handful of others.

Within the article entitled “Why Are We Seeing Fewer Foreclosures”, the following was highlighted: “Foreclosures are more difficult to complete, making for fewer trustee sales and fewer assets becoming REO.”

This is particularly true in New York, where the foreclosure  process involves proof of ownership and a judicial process overseeing events (and paperwork submissions).

For homeowners in the thinking stages of how to address a delinquent loan, it may be a good time to consider a short sale- certainly, a more successful outcome exists with the snag that the judicial process has delivered to lenders.  Not so, a few years (even a year) ago.

While there is paperwork required, it is a myth that “hardship” must exist.  To the contrary, while a hardship letter may be required, actual hardship is subjective- or, more so than it was.  It’s not unusual to see a short sale closing occur absent a hardship- each scenario differs, but banks appear more willing to work with homeowners who simply want to get out from under a property that they might otherwise simply stop making payments on.

If you’re in a situation in which you want to move, but are unable to, due to an above market loan amount, give us a call- there may be an increasingly civilized process with a short sale right around the corner.  We can be reached at 631-727-2227.
No promises or guarantees, but it’s certainly looking as though the words “short sale” may no longer elicit panic attacks, hives, or any number of stress related reactions that attached themselves to the process!
To view North fork, Long Island/ east end short sales, click here.  To sell your home, email or call.

While I’m not familiar with the MLS in New Jersey, the Multiple Listing System of Long Island (MLSLI) is the source for listed bank owned properties on Long Island- asset companies and banks require that all listings be entered into the local MLS by the Realtor assigned the asset.

Unfortunately, there is not a tab that offers a consumer direct access, and searching all MLS properties in order to locate bank owned is frustrating.  On our own website, we have foreclosures/reos for the east end (North fork/Hamptons) on a separate feed- one click provides almost all reos on the east end.

Both banks, and asset companies offer properties available for sale on their websites.

If, like my brother, you’re looking elsewhere, and are unable to locate a real estate website with an reo property feed, here are a few go-to sites:

www.homepath.com  will show Fannie Mae properties for sale, and often show “coming soon.”

www.homesteps.com  will show Freddie Mac properties for sale

www.pasreo.com  will show Wells Fargo properties for sale

https://servicing.chase.com/reo/property/FeaturedProperties  will show Chase properties for sale

https://citimortgage.res.net/  will show Citibank properties for sale

http://realestatecenter.bankofamerica.com/pages/map-search  this site allows you to locate current Bank of America offerings.

While this is a partial list (many banks are offering homes for sale), at the bottom a more comprehensive list can be accessed.  For local banks in your area, try googling the bank name, then reo- they may or may not have a property feed.

A few of the larger asset companies providing listed homes for sale are:

www.lps-am.com  will show LPS properties for sale (asset company)

http://www.greenrivercap.com/property/Property-Listings.aspx  will show Green River Capital properties for sale (asset company)

http://www.reoexperts.net/  will show NRT properties for sale (asset company)

For a great overall source list, we found the following link: http://www.mortgagenewsdaily.com/wiki/REO_Database_List.asp

As long as I’m sending this info to my brother, it made sense to share it with others who find themselves interested in foreclosure/reo homes for sale, but aren’t sure about committing to a monthly fee required by websites…

While we can’t guarantee the accuracy of all property feeds, we’ve found with our own bank property listings that the feeds offered by most banks and asset companies keep their lists up to date.  If you have any questions regarding North fork real estate, don’t hesitate to contact us!

Now, if I can just convince my brother that The North Fork or East End of Long Island, New York would work for him as easily as Northern New Jersey would….

In New York, however, lis pendens (or, pre-foreclosure notices alerting of a potential foreclosure) have decreased dramatically.

To view statistics on lis pendens activity, the Long Island Real Estate Report has provided a telling chart, found here.

Also decreased are the number of East end (Hamptons, North fork) bank owned properties for sale.

Is the east end immune, or is there something else in play?

Where are all of the bank owned properties sought by investors and potential homeowners alike?

Can home sellers rest assured that the worst is behind us, and price accordingly?

The following article will shed some light on the scarcity of REO/foreclosures/lis pendens filings on the east end of Long Island, and perhaps allow both home sellers and home buyers to see the big picture:

http://www.dailyfinance.com/2010/12/20/new-york-foreclosures-grind-to-halt/

It’s important for both home sellers, and home buyers on the east end of Long Island to understand that our local and state participation with foreclosure statistics remains well below the hardest hit areas nationally, but the legally required affirmations have prevented action for those undergoing the process in NY. The paperwork is provided by bank lawyers to the courts is not in order.

In other words, we don’t know how many are coming.

There is hope that the delay will assist under-the-statistical-radar homeowners find a way to keep their houses- that’s the upside.

The downside, for those considering the sale of their home, is that we haven’t worked through inventory that is inevitable.  Lower pricing on short sales and reo/foreclosed homes create a downward pressure on pricing overall.

For those considering selling, but hoping that “next year” will be better, understanding the potential issues is important.

To view east end of Long Island (Hamptons, North fork) for sale foreclosure/reos,  click here.

The east end of Long Island (North fork, Hamptons), has seen an increase in distressed property offerings. Homes for sale in the “distressed” category are usually short sales or foreclosures (also called reos- real estate owned).

We often get calls from interested buyers of short sales or reo properties, and occasionally there is confusion about exactly what each property is- is it owned by the bank? Does the homeowner own the house?

Short sales are homes with owners seeking to sell the property for an amount below the current 1st mortgage, or sometimes for an amount below the first mortgage, along with a second lien. Sellers of short sales are seeking the best offer from potential buyers, and are the decision makers-the homeowner decides which offer to accept or reject.
Once the seller of a short sale accepts an offer, that offer is submitted to the sellers lender for acceptance. It is at this point that the lender becomes involved in just what amount will be acceptable, and the offer is  either accepted, a counter offer is provided to the seller/buyer, or the offer is rejected.  So, while there is bank involvement key to the buyer, the homeowner remains fully in the picture.

A bank owned home for sale (foreclosure, reo) has completed the foreclosure process and is now owned by the bank (the property is vacant at the time that it is offered for sale). Unlike a short sale, a price has been established for the home, and interested buyers have full awareness of the price acceptable to the bank, as provided by the listing agency when the house is advertised for sale. The transaction, while different than a standard sale in terms of required paperwork initially, proceeds in a similar method to a standard home sale.

The primary differences between a short sale and a foreclosed property include a homeowner remaining as the point person for an accepted offer with a short sale, which is then forwarded to the bank for acceptance and negotiation, along with less certainty of pricing on a short sale, vs. the published acceptable price on a foreclosed home.
Another difference is that the short sale negotiation process is typically longer than the process for a foreclosure/reo home for sale- sometimes, significantly longer.

We are happy to answer any questions that you might have, whether you are considering a short sale for your home, or seeking a short sale or foreclosure/reo on the east end of Long Island.

To search for short sale homes for sale on the east end of Long Island (North fork, Hamptons), click here.

To search for foreclosed homes on the east end of Long Island (North fork, Hamptons), click here.

To search for all homes currently on the MLSLI (multi list of Long Island) on the east end, click here.

With an increase in East End (North Fork, Hamptons, Long Island) foreclosure / bank owned / reo homes for sale, we thought an insight into the process might assist those buyers seeking to purchase a bank owned home.

Unlike a traditional sale, REO homes have requirements of prospective buyers that, if understood prior to making an offer, might expedite the process, increasing the odds of actually presenting the offer that is accepted.

Once a foreclosure/bank owned home is located, an offer needs to be decided upon. Offers should be based on a buyers perceived value of the property, irrespective of the asking price. Some REO’s are priced in such a way as to garner immediate (and multiple) offers. It’s important for buyers to be aware that when such a competitive bidding process begins, providing the bank with the required prerequisites will save time, and increase success.

Buyers paying cash need to be prepared, at the time of the offer, to provide proof of funds to the bank. This proof can come in a few different forms. The most common appears to be bank statements. This provides a very clear picture to the seller that the buyer is capable of making the cash purchase, with funds available the day of the offer. Consult your lawyer for the best method of providing a seller with proof of funds.

If a buyer is seeking financing in order to obtain the property, check the wording on the listing. Some sellers require that all buyers engage in a prequalification with the lender chosen by the seller, often the bank who owns the property. This prequalification needs to accompany the offer. The absence of a prequalification letter can result in an offer being delayed for submission, so having it handy is imperitive.

Most banks require that offers be provided on state approved forms. On Long Island, the state approved sales agreement can be found on the MLSLI site. It is a form that provides for the offer price, amount down, buyers attorney and real estate agent, estimated closing date, and other pertinent information that will permit a seller to clearly see what the offer encompasses.

The key to getting an offer accepted is readiness. REO / bank owned / foreclosure homes for sale on the east end of Long Island, while not plentiful, generate interest. Some are in good condition, some less so.

Once your offer has been accepted by the bank, there is an addendum generated that is called an “as is” addendum. This addendum stipulates some of the “as is” terms of the agreement, and should be reviewed by the buyer with their attorney, so that full comprehension of the expectations are clarified. As is means AS IS. For some buyers, the addendum is not acceptable; for others, the terms of the “as is” are acceptable. The “as is” addendum will have a time frame attached- typically, two – three business days to review/return to the listing agent.

Important to note with all aspects of an reo / foreclosure / bank owned purchase is that the timelines set forth by the seller are most often not negotiable, and any deviation creates the real possibility that the offer will be returned, with the next highest offer replacing it. Bank owned purchases, while not warm and fuzzy, are clear. Adhering to the time frame should be viewed as non negotiable.

Within the three day window afforded from receipt of the “as is” addendum to the date of its required return provides an opportunity for buyers seeking an inspection to have that performed.
While it would be ideal to engage in such an inspection prior to receipt of an “as is”, there is no certainty, absent the addendum, that the offer submitted hasn’t been outdone by a higher offer. Such a decision rests with both the buyer, and the listing company- the listing company will be aware of any limitations imposed by the seller regarding an inspection.

Once the “as is” addendum has been signed, the seller will generate a contract to be provided to the buyers attorney for review. The date expected for the return of the signed contract is typically 3-5 business days, depending on the seller. Once again, the time frame needs to be adhered to.
Once the contract has been returned signed, and is accepted by the seller, the process becomes one of waiting for a closing date to be provided.

The above suggestions are just that- suggestions. This is not to be construed as legal advice, as I am not a lawyer. Consulting a lawyer on all things related to a foreclosure is recommended.

To view East End REOs (Hampton, North Fork foreclosure / bank owned homes for sale), click here.
If a bank owned home isn’t your preference, you can view all East End homes listed on MLSLI here.

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 is need-to-know for sellers of homes on the east end, and equally important information for those considering the purchase of a home in the Hamptons, NY area.

Property Shark has provided a report which can be located here.

The Long Island Real Estate Report had provided a report that can be found here. 

Because we’re aware of the moratoriums presented in the LI Real Estate Report, their reported (less dramatic) increase makes  sense, creating a much lower increase in activity when viewing the months in which lis pendens were prohibited.

One thing’s for sure: there has been a significant uptick in pre foreclosure activity in the Hamptons. While it’s quite possible that some will find a way to maintain ownership of their property, some will elect to walk away, while others are forced. Not pretty, but this market has not pretended to be more than that over the last few years.

Interest rates for mortgages, on the other hand, continue to provide a compelling reason to explore home ownership. The bright spot!

Time will tell. In the meantime, Suffolk Research has provided year over year figures for the east end of Long Island- comparisons are month over month for 2009, as well as a five year look back.

All of the data can be found by clicking here.

If you’d like more information on REO listings, we’re here to help. If you’d simply like to check out what’s available, it’s right there for you- just click the blue tab “north fork homes”.

If you are looking for a home for sale on the North Fork / East End of Long Island, please fill out the form below.

To search available homes for sale on the North Fork / East End Long Island or condos on the North Fork of Long Island, click “north fork homes”, enter your area of interest and any parameters, and click “go”- properties for sale include Riverhead, Aquebogue, Baiting Hollow, Calverton, Jamesport, Laurel, Mattituck, Cutchogue, Peconic, Southold, Greenport, East Marion, Orient, Orient Point, Westhampton Beach, Hampton Bays, Flanders, Southampton, Sag Harbor, East Hampton, Montauk, NY.

Bedrooms:5
Baths:2
Recorded square feet:1695
Full finished basement, large private yard.

To see East End, North fork, Hamptons REO/ Bank Owned, click here, and select “foreclosures.”

If you are looking for a home or bank owned foreclosure for sale on the North Fork / East End / Hamptons of Long Island, please fill out the form below.

To see East End, North fork, Hamptons REO/ Bank Owned, click here, and select “foreclosures.”

To see East End, North fork, Hamptons REO/ Bank Owned, click here, and select “foreclosures.”

Under contract properties on the North fork of Long Island, October 2008: 25

Median closed pricing: $424,450.

The median listed price in 2008 was $439,000.

Under contract properties on the North fork of Long Island, October 2009: 50

Median list price at time of contract: $424,990.*

*until properties close, contracted pricing is unavailable.

Towns included for this activity, and sold activity found below: Riverhead, Baiting Hollow, Calverton, Jamesport, S. Jamesport, Laurel, New Suffolk, Mattituck, Cutchogue, Southold, Peconic, Greenport, E. Marion, Orient.

That is double the number of contracts written over 2008. Before a celebration, however, it must be noted that October of 2008 (along with it’s September preface) was a “frozen” market- the true measure of how dire the banking industry had become was in evidence, with buyers scurrying to the sidelines in hopes of waiting things out to see exactly how the real estate market was going to react (or, COULD react) under such dire circumstances. So, the fantastic news is that we are no longer in that dreadful, shell shocked time, and buyers are responding to the resultant price drops afforded by forward thinking sellers. May we NEVER (at least, in our lifetimes) see such a truly horrific banking month…

Closed properties on the North fork of Long Island, October 2008: 46

Median closed pricing: $514,950.

Closed properties on the North fork of Long Island, October 2009: 39

Median closed pricing: $387,000.

Reality check: buyers are completing transactions, but they are seeking lower pricing. Sellers providing this bit of realistic pricing are seeing a sale come to fruition. Prices remain in a declining position, but buyers are willing to purchase if the price is right!

 Congratulations to all sellers/ new homeowners on the North fork of Long island in October, 2009!

**while deemed a great gauge of trends, please consult your Realtor for a full market analysis.

To search available homes for sale, foreclosures, bank owned, REO on the North Fork / East End Long Island or condos on the North Fork of Long Island, click “north fork homes”, enter your area of interest and any parameters, and click “go”- properties for sale include Riverhead, Aquebogue, Baiting Hollow, Calverton, Jamesport, Laurel, Mattituck, Cutchogue, Peconic, Southold, Greenport, East Marion, Orient, Orient Point, Westhampton Beach, Hampton Bays, Flanders, Southampton, Sag Harbor, East Hampton, Montauk, NY.

Part of membership is the ability to provide all homes for sale for those seeking real estate information, with those listings entered into the MLSLI by cooperating companies. This is called an IDX feed, and allows a property to find exposure on ALL MLSLI member real estate websites, as well as on the MLSLI and listing company website. The idea behind this cooperation is that it will increase exposure for sellers, and provide multiple venues for buyers.

BANKS WANT THEIR REO’S ON AN MLS.

When bank owned properties began appearing with more quantity on the East end of Long Island (Hamptons, North fork), these listings were entered into the MLSLI. As a company that is involved in listing REO’s, it’s not negotiable: BANKS WANT FULL EXPOSURE FOR THEIR PROPERTIES, and listing agreements with their broker of choice requires input into the MLSLI system.

While it’s been possible for us, as a real estate company, to locate bank owned and REO properties for potential clients, it has NOT been possible for those interested in bank owned to view them all in one place, at one location, absent a real estate agent providing the data. The IDX systems are set up to show ALL properties, but not specifically bank owned, or short sales.

AS OF MONDAY, Oct. 26, 2009, OUR IDX PROVIDER IS CHANGING OUR SEARCH OPTIONS. Included in the search will now be an option to seek out foreclosures ONLY, without having to search through all listings to locate an reo. These will include not only our REO listings, but ALL listings.

It will work like this: when you go to the blue button for “north fork homes” (BLUE TAB ON THE RIGHT) you’ll be brought to the regular MLSLI IDX feed. What will be different is that when you view property “type”, the additional choice of “foreclosures” will be available to click on. This will bring you ALL currently listed REO properties on the east end of Long Island.

At this juncture, we are uncertain as to whether or not it will have the capability to search outside of the east end, but we hope so- a simple choice of towns will bring to you all of the foreclosures available in that town.

Give it a try. Signing up is easy, and free- no hassles, and no phone calls. You can even have REO’s delivered to you as they appear on the MLSLI.

If you’d like more information on REO listings, we’re here to help. If you’d simply like to check out what’s available, it’s right there for you- just click the blue tab “north fork homes”.

If you are looking for a home for sale on the North Fork / East End of Long Island, please fill out the form below.

To search available homes for sale on the North Fork / East End Long Island or condos on the North Fork of Long Island, click “north fork homes”, enter your area of interest and any parameters, and click “go”- properties for sale include Riverhead, Aquebogue, Baiting Hollow, Calverton, Jamesport, Laurel, Mattituck, Cutchogue, Peconic, Southold, Greenport, East Marion, Orient, Orient Point, Westhampton Beach, Hampton Bays, Flanders, Southampton, Sag Harbor, East Hampton, Montauk, NY.