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2009 North Fork East End Real Estate Jargon

March 29th, 2009 category: East End LI ForeclosuresNo Comments »

The onset of a declining real estate market introduces terminology that, thrown around frequently, might be worth revisiting.

Some terms for 2009 that seem to appear frequently:

Lis Pendens. A lis pendens is an initial action of foreclosure by the lender with notification. A lis pendens generally occurs when a homeowner has missed three months of mortgage payments. Lis Pendens are reported, becoming public record, and afford future glimpse at what may be a trend worth watching in areas of interest.

Broker Price Opinion (BPO). A Broker Price Opinion is a valuation often requested by banks, and performed by a local broker, to establish market pricing for potential bank owned homes (those that have foreclosed). BPO’s are also used in short sale decisions made by the bank. While not an appraisal, BPO’s are a valuation tool used for distressed properties.* Local brokers called upon to perform BPO’s watch trends with these, as well.

“As Is”. This one needs legal input. While “as is” can be generally defined as “what you see is what you get”, building code violations and other complications (liens, for example) demonstrate the need for a good lawyer reviewing the terms of your agreement.

REO’s. REO’s are bank owned properties. Often sold “as is”, pricing is often aggressive. Selling quickly requires lower pricing.

Consumer Tax Credit. This is a tax credit offered by the government to first time home buyers. The current tax credit is $8,000., with no repayment. With…no…repayment. Depending on the purchase price and buyers income, if the full amount isn’t used, the government may refund the difference. The tax credit is implemented when you do your taxes. More here.

Loan Mods. Loan modifications are an attempt by banks to mitigate their losses by keeping another losing asset off of the books. With so many mortgages in a precarious place, banks offer varying methods of assistance, from deferral of payments, to a temporary break in the payment amount. More here.

Short Sale. A short sale is the result of a seller owing more on the house than it will sell for, and requesting that the bank accept the potential shortage, were a buyer to make a purchase at an amount lower than the mortgage. Short sale pricing is not always reflective of the banks willingness, so unlike an REO where the maximum price is set (assuming no bidding wars), short sales involve a negotiating process between the sellers and their bank.

Pre-Qual. A Pre qualification is a buyer assessment by a bank establishing parameters for a purchase based on credit score, income, job history. A typical pre qualification, offered to sellers when a property is located by the buyer, assists the seller in establishing the credibility of the buyer. Unfortunately, the issuing bank doesn’t provide its own prequal…but that’s another subject. A typical pre qualification involves pulling a credit report, and reviewing buyer data- previous years income tax, pay stubs, debt ratios.

Mortgage Contingency. A mortgage contingency is a stated “out” for a buyer, usually with time frames that must be adhered to. If the buyer is unable to obtain a mortgage commitment by x date through no fault of their own, absent a mutual extension, with timely written notification to the seller, the contract is null and void, with deposits returned. In NY, lawyers implement contingency clauses for contracts.

If you have any questions about the changing market on the East End / North fork of Long Island, we’re happy to help.

To search available condos or 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, and Orient Point, NY.

To get more specific local North Fork or East End real estate information, fill out the form below with your questions/comments. We know how to find properties coming on the market, and available. If you’re looking for a foreclosure on any part of Long Island, we’ll help you find it.

Tax Credit Explanation for First Time Home Buyers on The East End & North Fork

March 23rd, 2009 category: Buyers, East End LI Foreclosures, Real Estate NewsNo Comments »

While much has been offered in the way of explanation for the first time home buyer tax credit, we thought we’d bring you right to the link that makes the program clear.

A “first time buyer” is a homeowner seeking a primary residence, and one who has not owned a home within the last three years.

http://www.guarantee.com/taxcredit/taxcredit_faq.pdf *

*courtesy of Susan- thank you!

To get more specific local North Fork or East End & Hamptons real estate information, fill out the form below with your questions/comments. We know how to find properties coming on the market, and available. If you’re looking for a foreclosure on any part of Long Island, we’ll help you find it.

Short Sale and Foreclosure Home Search on the North Fork and East End of Long Island, NY

March 15th, 2009 category: East End LI ForeclosuresNo Comments »

It was with relief that a new search feature on the MLSLI (multi list service of Long Island) was discovered- it’s an REO (bank owned) and short sale search.

It’s now possible to sort properties with these buyer parameters, but is also helpful for sellers.

Knowing what’s out there, and being able to access it, is a function needed in a distressed market, and MLSLI has heeded the call.

Unfortunately, this search feature is not yet available for consumers on the MLS feed, but we’re happy to perform the search, and send properties of interest until it becomes integrated into the consumer search feed.

We’ll need parameters: towns, preferred home style, price range; once entered, we are able to implement the search, and deliver the results to your email.

Sellers, if you’re considering putting your home on the market, this is need-to-know information that we are happy to provide.

Searching for MLSLI listed properties that are foreclosures, REO, bank owned, and short sale offerings has never been easier on the North fork/East end/Hamptons, NY area, and the large majority of offerings are present in both areas- we’re happy to help!

Check back soon- we’ll be launching eastendreo.com, and well as eastendforeclosures.com. Both sites will include properties on the mls feed, making your search simple in less than simple times.

How To Get Bail Out Incentives

February 23rd, 2009 category: East End LI Foreclosures, Real Estate NewsNo Comments »

peconic river The following link was of interest- if you’ve been wondering just what the upcoming programs are and how they affect your situation, the explanation found here might assist.

The post comes from the Wall Street Journal in the Investing section. The Housing Bailout: Do You Qualify? $8,000 home-buying credit? Refi assistance? How to know whether the Obama administration’s initiatives will help you.

Start by contacting your bank, along with your accountant- there may be offerings that will make owning your home less worrisome, and more easily managed.

Pre-Foreclosure Report for the East End of Long Island

February 23rd, 2009 category: East End LI Foreclosures, Real Estate News2 Comments »

The following data was collected from the Real Estate Report.

The information includes all lis pendens filed on the east end of Long Island from January 1, 2009 through February 22, 2009:

AMAGANSETT, NY: 4

BAITING HOLLOW, NY: 2

BRIDGEHAMPTON, NY: 4

GREENPORT, NY: 4

HAMPTON BAYS, NY: 6

JAMESPORT, NY: 2

MATTITUCK, NY: 1

MONTAUK, NY: 3

RIVERHEAD, NY: 5

SOUTHAMPTON, NY: 4

SOUTHOLD, NY: 3

WESTHAMPTON BEACH, NY: 3

CUTCHOGUE, NY: 1

EAST HAMPTON, NY: 7

EASTPORT, NY: 1

EAST QUOGUE, NY: 3

QUOGUE, NY: 2

REMSENBURG, NY: 1

WESTHAMPTON, NY: 7

CALVERTON, NY: 2

EAST MARION, NY: 1

SAG HARBOR, NY: 5

FLANDERS, NY: 2

WADING RIVER, NY: 3

MEDIAN LIS PENDENS MORTGAGE: $530,500*

AVERAGE LIS PENDENS MORTGAGE: $702,339*

*FOR THE WEEK OF FEBRUARY 20

Year-to-date figures indicate trouble brewing in the Hamptons, with those townships exceeding lis pendens over the North fork. East Hampton and Westhampton have the highest figures, followed by Hampton Bays, Sag Harbor, and Riverhead. If you are selling a property in any of these areas, be sure to check with your listing company to make sure that your home is in the MLSLI- full exposure is essential.

A recent Bloomberg article appears here, offering some insight as to trends to expect either as a high end home seller, or buyer.

If you are considering selling your home (and must), call us for a reality check- you’ll need the most current information available.

If you are considering buying a home on the east end of Long Island, click on “north fork homes.” While the majority of Hamptons listings are inexplicably missing from the MLSLI, distressed properties appear to warrant the exposure, so you’ll find some of the more interesting offerings there, with the North fork showing the lions share of available properties.

Hmmm…maybe the mlsli (multi list service of Long Island) offers a better venue for sellers than existing alternatives that are in areas with the highest number of pre-foreclosures…

Something for east end brokers to think about.

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, and Orient Point, NY.

Long Island Foreclosure Numbers Fall. Or Do They?

February 19th, 2009 category: East End LI ForeclosuresNo Comments »

I am glad that researchers and reporters are astute enough to realize when and why foreclosure numbers and statistics need explanation.

Ellen Yan posted this a few days ago on Newsday’s Real LI blog.

Foreclosure-related filings on Long Island last month fell by double digits compared to the same time a year ago, according to figures released last week by RealtyTrac, a California-based online market for foreclosures.

Delinquency, auction and other notices dropped 33 percent in Suffolk, 28 percent in Nassau and 36 percent in Queens, while the average drop across the state was 28 percent, the report said.

James J. Saccacio, RealtyTrac’s chief executive officer, said the moratorium on foreclosures by government-controlled, mortgage guarantors Fannie Mae and Freddie Mac helped continue the drop in filings that started late last year, after several states, including New York, passed laws requiring lenders and servicers to give homeowners a 90-day notice before starting the foreclosure process.

Read the entire post over here.

To get more specific local North Fork or East End Real Estate information, fill out the form below with your questions/comments. We’ve been monitoring the area, and have learned how to find properties coming on the market, and available. If you’re looking for a foreclosure on any part of Long Island, we’ll help you find it also.

Inside an REO Conversation

February 12th, 2009 category: East End LI Foreclosures, Real Estate NewsNo Comments »

It was very interesting listening to one side of a bank owned property conversation.

My partner is listing REO’s (bank owned properties). What struck me was the simple reality of the bank owned side:

” My asset manager has told me that if the addendum isn’t received by them today, the contract will be terminated. There is nothing personal- they don’t view transactions on a personal level- it is what it is. It’s not game playing…. if the paperwork isn’t received today, there is no agreement. Just reminding you so that there are no surprises on your end.”

Bank owned properties, while more complicated that a “normal” transaction, operate in the absence of a seller taking things personally. Because pricing generates interest, and assets are costing money, fast turn-arounds are the objective/priority. Unlike a traditional transaction in which personal understanding on the part of the seller/buyer for the buyer/seller in the event of a minor glitch or need for time, banks operate solely from a numbers standpoint, and are not going to offer any level of personal generosity that a traditional sale might.

They’re inundated, and do not have the luxury of time to spend on occurrences outside of their own checklist- hence, deadlines are exactly that.

On the upside, if you are looking at a bank owned home (foreclosed), you’re getting a home at below market value in many cases- the urgency doesn’t permit much in the way of testing the market from a bank perspective.

Asset managers are the conduits, managing the marketing of properties assigned to them by banks, and distributing REO listings to real estate companies. Once an assignment is received by the real estate company, and the house receives offers, the clock starts ticking in earnest on the asset managers desk, andtime frames are provided with an understanding that: here’s this; here’s this; have this back in 48 hours; if it isn’t back…NEXT.

If you and your real estate agent are going to view bank owned properties, readiness is essential. You may find nothing; you may find a real bargain- either way, fitting into the bank-owned real estate experience will eventually become a reality if locating a foreclosure is your plan.

Awareness that you’re dealing with bank machinations in a non personal environment of deadlines will alleviate the shock when “tomorrow by noon” really did mean “tomorrow by noon”- awareness is a good thing.

If you are looking for foreclosed properties on the east end of Long Island, keep reading and sign up today.

To get more specific local North Fork real estate information, fill out the form below with your questions/comments. We’ve been monitoring the area for a few years, and have learned how to find properties coming on the market, and available. If you’re looking for a foreclosure on any part of Long Island, we’ll help you find it also.

Inventory of Ghost Listings are Hiding Out

January 24th, 2009 category: East End LI Foreclosures, Real Estate NewsNo Comments »

There seems to be a inventory of “Ghost Listings” or “Shadow Listings” that are hiding in dark alley ways and back streets.

CNNMoney’s post today titled, Flood of Foreclosures: It’s worse than you think by CNNMoney.com staff writer Les Christie. Some excerpts follow.

Banks are moving slowly to list repossessed homes for sale, which could mean that housing inventory is even more bloated than current statistics indicate.

The problem: Many foreclosed homes and other distressed properties that are now owned by banks have yet to be listed for sale. The volume of this so-called ‘ghost inventory’ could be substantial enough to depress already steeply falling prices when it does go on the market.

Lenders still insist they try to act as swiftly as possible. According to Tom Kelly, a spokesman for Chase (JPM, Fortune 500) Mortgage, their goal is to cut their losses on these homes, which are expensive to maintain, as fast as possible.

But banks might hold back listings in areas where they already have lots of homes for sale in order to avoid flooding the market, according to Michael Youngblood, a financial analyst and founder of Five Bridges Capital, an asset management company.

You can read the whole article here.

To check out all available homes 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, and Orient Point, NY.

Finding Foreclosed Homes for Sale on Long Island, East End & North Fork

January 14th, 2009 category: East End LI Foreclosures3 Comments »

For free.

That seems to be a legitimate question on the mind of value seeking homebuyers, and why shouldn’t it be?

“Regular” properties can be found in abundance on both local and regional mls’s; but to find a compilation of FORECLOSURES (particularly on the east end of Long Island- North Fork and Hamptons), the endeavor is more challenging.

After paying for Propertyshark.com , but discovering that (AT THAT TIME- I’LL RECHECK) their coverage area didn’t quite extend itself to our area on the eastern tip of Long Island, they graciously returned the payment for monitoring. If they’re out here now, a class act worth subscribing to- if they’re out here now, we will.

RealtyTrac, another huge foreclosure site, also didn’t offer the most current conditions on the east end of Long Island for foreclosures, although they are a huge go-to for good information, and worth the subscription (except we don’t, because we want daily updates).

There are several conduits to available properties. Wells Fargo participates in foreclosure.com, and as a player in foreclosures, this service provides alerts for properties (and automatic entry from the listing REO broker). We subscribe, because Wells Fargo has some lis pendens up there with other companies (**see below- the real estate report). It’s another paid service.

Work with a list of bank websites, and you’ll be directed to their inventory of homes for sale.

There are several companies that specialize in bank-owned only – visible is the status of their inventory. Some indicate “eviction”, which means that a property is upcoming, but not available. We keep an eye on those, watching for companies of substance popping up with foreclosed listings.

MLS’s include bank owned, and the description at the top of the listing is easily identified.

**We subscribe to a lis pendens list, the Long Island Real Estate Report, and they provide “lis penden” reports- properties for whom the bank has served notice of intent to foreclose (usually after three missed payments to the mortgage company).**

To get more specific sites that are free, or for any information, fill out the form below with your questions/comments. We’ve been monitoring the area for a few years, and have learned how to find properties coming, and available. If you’re looking for a foreclosure on any part of Long Island, we’ll help you find it.

Were there a more simple way to disseminate the foreclosure properties to those interested in buying them, we’d offer it. Unfortunately, for now, it’s a bit of hide and seek (and we’ve gotten good at it). Hopefully, the search for foreclosure opportunities will end soon, and the mlsli with regular offerings will return.

East End of Long Island Short Sale Guide

January 4th, 2009 category: East End LI Foreclosures, Real Estate News3 Comments »

Going into 2009, the following are some scenarios that may be encountered by both buyers of homes on the East End of Long Island, and sellers of homes on the East End of Long Island.

If you’re a homeowner seeking to sell your home via a short sale (if your loan amount exceeds the current market value, and you MUST move), the following are some things that you’ll be expected to provide to your bank in order to get approval for this action:

1. Considered by some the most difficult: a HARDSHIP LETTER . In this communication, you’ll provide to the lender the exact nature of your situation, accompanied with facts to demonstrate an inability to make payments. Sign and date it.

2. A financial statement, detailing your current state of affairs (including, but not limited to, all income generated; all savings account balances; any assets). Sign and date it.

3. A broker price opinion, generated by your listing agent, demonstrating the comparable properties that have sold in your area recently.

4. Last years tax returns or 1040/W-2’s.

5. Your most recent pay stubs

6. All listing activity, provided by your listing agent, showing price adjustments through the course of the listing period.

**SEEK LEGAL COUNSEL FOR ALL RECOMMENDATIONS. THIS IS STRICTLY A HEADS UP- it is very important to have legal guidance for any distressed property scenario, as can only be provided by a lawyer.**

If you’re a buyer interested in making an offer below the total amount owed by a seller, be prepared to offer a qualification letter generated by your bank, with proof of funds, to be submitted with your offer. In order for a bank to view an offer as viable, providing this proof is a non-negotiable requirement expected by most banks. Start early, by visiting a lender BEFORE you look- scrambling with the possibility of other offers could well create a lost attempt to purchase.

Another way ”out” for distressed sellers with one mortgage, no second mortgages, is a deed in-lieu-of foreclosure. One advantage to a deed in lieu of foreclosure is, among other things, a better likelihood that a deficiency judgement on the part of the bank will be reduced or waived, although this is not always the case. Your attorney needs to review all avenues with you, in order to provide you with the legal ramifications of any action that you might take to resolve a situation that is creating HUGE stress. The sample deed in lieu of link is from HUD; check with your bank to see if this is an option for you.

BANKS DON’T WANT PROPERTIES BACK, and both short sales and deed in lieu of foreclosures avoid the cost of a subsequent foreclosure process for the lender, so may well benefit both sellers, banks, and buyers.

Understanding up front requirements when dealing with your lender, or purchasing a short sale, will minimize the frustration that often accompanies any decision in the sale or purchase of a distressed property. There’s a reason for the difficulty- you are most definitely not alone. Loss mitigation departments are swamped, dealing with many, many sellers and buyers undergoing the same challenge.