What exactly is a Short Sale of a home?

I have been hearing this question more and more lately. Both from Long Island home sellers who are under water and not sure what to do, and Long Island home buyers who see it listed in descriptions of homes for sale.

A Short Sale, also known as a pre-foreclosure sale, is when a home is sold for less than the balance remaining on the mortgage. If the mortgage company agrees to a short sale, the owner can sell the home for a price the bank says is OK and the balance of the mortgage is forgiven by the bank.

A short sale is an alternative to foreclosure and may be an option if:

• You are ineligible to refinance or modify your mortgage
• You are facing a long-term hardship
• You are behind on your mortgage payments
• You owe more on your home than it’s worth
• You have not been able to sell your home at a price that covers what you still owe on your mortgage
• You can no longer afford your home and are ready or need to leave

 A short sale typically is less of a hit on your credit than a foreclosure is.

Some banks are offering relocation money to help you out if you complete a short sale cooperatively.

If you are in this position, the important thing to remember is that you are not alone! 

• There are Government Programs in place to help you
• Banks are trying to help eliminate a national crisis by adding incentives
• Controlling your situation helps you alleviate the associated stress
• There is a big difference in knowledge of the people working in the short sale market
• Carefully choosing the correct path determines the critical beginning of your financial future

 We have successfully completed short sales.

• Walk you through the whole process every step of the way straight through to closing! 
• Act as a liaison with your bank and lien holders.
• Within 48 hours of listing your property we will contact the bank(s) and lien holders to start the short sale process, even before the home is sold. 
• Advise you of all documents needed to successfully qualify for a short sale. 
• Negotiate with your bank and lien holders to get the best possible outcome for you. 
• Stop your phone from ringing!!

From the buyer point of view - a Long Island short sale MAY be a bargain.But the bank does look at other sales in the area to determine an amount that it would accept.

Short sales also take a long time to complete as opposed to a normal sale between 2 parties.

If you are patient, and have the time, there is nothing wrong with investigating the short sale option.

I can help you both with buying and selling Long Island Short sales.

Let me know how I can help.

Here is a link to all Nassau County Short Sales currently on the market.

Donna Galinsky
FindYourHomeLI.com