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I was in the Real Estate section of city data and saw many buyers a successful short sale story; but I noticed maybe one person who was going through the process who lives in the Bronx. It seems that not many people go through the process here in new York....especially NYC/LI....so
Anyone on here has any success story on purchasing a short sale? Where in the process are you?
I am not involved with short selling or buying but a friend on Long Island recently completed such a transaction. He did get a nice house but it took about about 17 months by the time it was all said and done and he was told he was one of lucky ones, that his went so smoothly.
While there have been success stories, just a fair warning: You need to have a lot of time, patience, and realize you may have money tied up in the deal for quite a while. I was in a short sale contract for a year; we had to deal with an elusive bank, teenagers constantly breaking into the house (knowing it was vacant) and holding parties there and defacing it; and paying over $1,000 in inspections for a house we ultimately didn't buy. The bank was being elusive to the point where we found another house nearby and bought it in a regular sale, then waiting for the contract to lapse.
Good thing we did, because the house turned out to be in an even worse state of disrepair than when we first went into contract, despite the bank's efforts to secure it. All the damage that had been done by the teens and the time lapse would have brought us way over the $100,000 we'd budgeted to fix it up.
My friend was more successful - however, the process dragged on so long that she signed another lease with her apartment complex, not thinking the sale would actually go through. She wound up having to break her lease five months in when the short sale did close. And the folks who'd moved out of the house she bought sledgehammered the walls before she moved in.
So is the difficulty a NEW YORK/LONG ISLAND thing?
No, it's not specific to Long Island/NY.
One of several reasons we're so "late in the game" with short sales/foreclosures is the fact that New York is a Judiciary State and the foreclosure process can take more than three years; this can give delinquent homeowners lots of time to "sit on it" without paying the mortgage.
The "difficulty" with short sales can depend on a number of things, including who the lender/note holder is (some are known to be difficult to deal with), plus how "real" the hardship of the homeowner is to the lender/note holder.
I had buyers just recently who after shelling out $$ for an inspection and an appraisal after contract signing, were informed that the short sale was not approved; apparently the lender did not consider the stated hardship as acceptable.
On the other hand, sometimes the lender/note holder is not realistic about the current market value, especially when they're out of area and don't understand our market. This can delay an approval until an appropriate value is agreed upon to make the property competitive with regard to asking price.
One of several reasons we're so "late in the game" with short sales/foreclosures is the fact that New York is a Judiciary State and the foreclosure process can take more than three years; this can give delinquent homeowners lots of time to "sit on it" without paying the mortgage.
The "difficulty" with short sales can depend on a number of things, including who the lender/note holder is (some are known to be difficult to deal with), plus how "real" the hardship of the homeowner is to the lender/note holder.
I had buyers just recently who after shelling out $$ for an inspection and an appraisal after contract signing, were informed that the short sale was not approved; apparently the lender did not consider the stated hardship as acceptable.
On the other hand, sometimes the lender/note holder is not realistic about the current market value, especially when they're out of area and don't understand our market. This can delay an approval until an appropriate value is agreed upon to make the property competitive with regard to asking price.
What's the shortest You've seen a short sale completed from start to finish?
I do think what you stated is true regarding a "judiciary state". I've never thought about it that way.
What's the shortest You've seen a short sale completed from start to finish?
I do think what you stated is true regarding a "judiciary state". I've never thought about it that way.
With a regular sale, the "average" time from contract to closing on Long Island is about three months.
It would be a gift to have a short sale take the same time, so it's rare. Four to six months is more likely, although many take longer. Which of course has an impact on the interest rate the buyers will pay--rate locks beyond 60 days usually cost $$.
Not difficult. Put my house on the market in April 2011 and the closing was 1st week in Nov. my RE agent was a very experienced SS agent. You need someone who has contacts at the bank and makes relationships with the people who can make things happen. As long as the seller is ready to sell, it goes pretty smoothly. The biggest problem is when the sellers turn around a year later and doesn't want to sell because they like the idea of living for free. Good luck.
Not difficult. Put my house on the market in April 2011 and the closing was 1st week in Nov. my RE agent was a very experienced SS agent. You need someone who has contacts at the bank and makes relationships with the people who can make things happen. As long as the seller is ready to sell, it goes pretty smoothly. The biggest problem is when the sellers turn around a year later and doesn't want to sell because they like the idea of living for free. Good luck.
Is there a way to make sure the seller go through with the process? Or how do we gauge whether the seller in serious?
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