Entries Tagged 'Long Island Short Sales' ↓

Your Short Sale Listing Not Selling?

“Time and time again, I continually run into agents that are advertising a “short sale” listing and the property is sitting on the market idly…not selling.”
Case in point: I make a solid offer on a property with great buyers who are conditionally approved. The property is a short sale in West Babylon, being serviced by…a part-timer who doesn’t know what they’re doing and broker just as inept.
We make the offer, in writing and I continually try to ascertain how the offer is going to be presented to the bank. I push the agent to tell me exactly how her client is being represented, whether an attorney is handling the short sale or if she or her broker are handling the negotiations.
I push to get the binder to contract. Trying unsuccessfully to schedule an inspection.
I recommend to my buyers to hire an attorney who I know draws up contracts with a letter and sends them directly to the owners.
The buyers tell me, they’re going to pass on the short sale just because the agent and broker are inept. Rates are good and they don’t want to screw around with a messy situation.
The agents complete irresponsible approach to representing her client just cost her broker money, herself money and most importantly, her client’s livelihood to escape foreclosure.
Now, in this business, you also have clients that are not focused, unorganized and not really that motivated to do what is necessary. The client can stifle an offer process or just get in the way in so many ways, of the deal getting done.
But, this agent, on this particular home, never even called me back. We chatted once. I spoke with her broker once. Neither has ever returned my phone calls. I gave up after 8 voice messages. My time is too valuable and so is my client’s.
So I say to you possible real estate agent reading this, call me if you have short sale listings that are not selling. I will get it done for you.
631.831.9048

Long Island Real Estate Market: Foreclosure Update, October 2008

This is a foreclosure update for the Long Island real estate market. This report features the number of homes that are pending foreclosure throughout a sample of the Long Island real estate market.

Suffolk County

West Islip = 28 Homes Pending Foreclosure
Deer Park = 84 Homes Pending Foreclosure (30% increase over August)
Babylon = 12 Homes Pending Foreclosure (50% decrease)
West Babylon = 87 Homes Pending Foreclosure
Lindenhurst = 93 Homes Pending Foreclosure
Patchogue = 13 Homes Pending Foreclosure
Miller Place = 28 Homes Pending Foreclosure
Riverhead = 4 Homes Pending Foreclosure
Huntington = 50 Homes Pending Foreclosure
Port Jeff = 10 Homes Pending Foreclosure
Sayville = 19 Homes Pending Foreclosure
East Hampton = 1 Homes Pending Foreclosure
Smithtown = 7 Homes Pending Foreclosure
Hauppauge = 17 Homes Pending Foreclosure
Manorville = 18 Homes Pending Foreclosure

Total = 471 Homes Pending Foreclosure (8% Decline)

Nassau County

Farmingdale = 18 Homes Pending Foreclosure
Seaford = 4 Homes Pending Foreclosure
Massapequa = 43 Homes Pending Foreclosure
Freeport = 41 Homes Pending Foreclosure
Wantagh = 8 Homes Pending Foreclosure
Lynbrook = 2 Homes Pending Foreclosure
Elmont = 29 Homes Pending Foreclosure
Oceanside = 1 Homes Pending Foreclosure

Queens

Flushing = 78 Homes Pending Foreclosure
Bayside = 22 Homes Pending Foreclosure
Jamaica = 704 Homes Pending Foreclosure
Howard Beach = 27 Homes Pending Foreclosure

If you want information on a specific town, leave me a comment or call me at 631.831.9048.

Throughout each of the counties in the given towns selected, there was about a 10% decline in homes pending foreclosure throughout Long Island. This is good news!

The average loss of equity from a foreclosure on Long Island is about $8000. So the fewer foreclosures in your area, the better! Overall, the foreclosure numbers, gathered from RealtyTrac, appear to be declining. This is fantastic news for a number of reasons, one being, the damage to home values will be less.

This past week in the financial market, things do not seem promising. If you watch too much news, you would believe that the sky is falling. I always try not to watch the news, especially local news because it’s filled with the filth of our humanity, usually jam-packed with the worst of what our area has to offer.

I will continue to report on the Long Island foreclosure situation and see how things change from month to month. Please continue to come back. If you have any questions on a specific town, please feel free to contact me.

For the previous foreclosure updates, www.tommcgiveron.com/category/foreclosures/.

Tips for Avoiding Foreclosure

Long Island Short Sales

Long Island short sales are on the rise. The numbers are staggering. According to the Long Island Board Of Realtors, short sales will continue to rise and real estate agents will be scrambling to assist homeowners in danger of losing their homes to foreclosure.

However, in my travels as a professional real estate salesperson, I find that many homeowners do not know anything about “short sales”. A short sale occurs when the seller’s lender (the bank that holds the mortgage on the house) accepts a discounted pay off in order to release the existing mortgage. Basically, the bank agrees to take less than what is owed on the property and the homeowner is able to walk away from the property without having any further debt owed to the lender.

On Long Island, short sales are becoming increasingly “popular” with homeowners who cannot pay their mortgage due to mortgage resets on adjustable rate mortgages.

The main reason why short sales are the most viable loss mitigation alternative is because the effect on the homeowner’s credit is much less damaging than a foreclosure. On a FICO score, the average loss is 300 to 400 points when a homeowner goes through the process of foreclosure. However, if the homeowner chooses to negotiate a short sale, the drop in FICO score may only be 80 to 100 points, assuming their mortgage is the only debt they can’t pay.

The short sale “package” that many homeowners will need to submit to the bank will include a hardship letter written by the owner(s) which explains the circumstances surrounding their inability to pay the mortgage. The lender will also require an authorization form allowing the real estate agent and/or attorney for the seller, to speak to the bank and negotiate the sale approval. Additionally, the lender will want proof that the money coming into the household is insufficient to cover the mortgage, so W-2’s, bank statements, and check stubs will be required.

The agent you choose to assist you must have extensive knowledge of the short sale process. On Long Island, many real estate agents do not have the experience to successfully complete a short sale transaction. Many agents will just tie up a property in a long listing agreement, only to poorly advise the seller and ultimately pass the point at which a short sale will even be acceptable to the lender.

As a homeowner, it is imperative that certain objectives are met with regard to the conducting of a short sale. Since I consider these objectives privaleged information I will not list them here. If you are a homeowner and would like to discuss the process in depth, I am available at 631.831.9048.

For more information on Long Island foreclosures - click here.

(c) Copyright 2008 www.tommcgiveron.com

By Thomas McGiveron, Licensed Real Estate Salesperson