10 STEPS TO SELL YOUR HOUSE TO AVOID FORECLOSURE IN NEW YORK

• First and foremost use a Realtor® to sell your greatest asset – your house; that is experienced with all the nuances associated with foreclosures and bankruptcy.   That Realtor® will necessarily be able to determine how much real equity you have in your property and will probably, and ultimately, put more money in your pocket at the end of the day.

• Calculate the dollar amount or payoff, with interest, of all recorded liens against the property.  The foreclosing lender will have to be contacted to obtain a current payoff letter as to how much money it is owed. They will be calculating in legal fees, expenses and costs of prosecuting the foreclosure action as well as all monies they have advanced for escrow including real estate taxes, water and sewer and insurance. A search will have to be performed to determine all judgment liens recorded against the property and those payoffs with interest will have to be determined, as well.  In addition, the Seller is responsible for paying all State and Local transfer taxes.

• The Realtor will be able to properly determine the current market value and equity of the property.  Thus, when all the payoffs, costs and expenses of selling the property are calculated together with the value of the property the Realtor will be able to make an educated decision as to the eventual equity in the property and what monies can be realized from a fair market sale of it. If, there is found to be no equity in the property, that is, where all the costs and expenses and payoffs exceed the value of the property then the Realtor® must decide if the property can be successfully marketed and closed as a Short Sale.
  
  
• The marketing of the property as a Short Sale is radically different from a Conventional Sale.  In a conventional sale the optimum sales price is always the focus and property appearances are key.  But, in a Short Sale, that is not the case. So, there is no need to make any improvements to the property and it can be sold in its current condition.  This is much easier for the homeowner as it can thus be listed immediately and no effort, time or expenditures to improve the property are requested, warranted or necessary.
  
  
• Determining the stage of the foreclosure proceedings.   Typically, if a judgment of foreclosure and sale has not yet been entered there is probably more than enough time to list, market and sell the property as a conventional sale and almost receive the same monies as if the property was not in foreclosure. There is no prohibition to doing this. Once a judgment of foreclosure and sale has been entered an auction sale can be scheduled and held within 60 days of the entry. This, of course, changes certain strategies in the marketing and pricing of the property.  However, there is still the absolute right to still sell and convey and avoid foreclosure on the property, in New York, at any time prior to the sale being held.

• Ease your mind.  As mentioned, the most important issue to keep in mind, at all times, is this absolute ability to be able to convey and sell. Thus, realizing the equity in the property, and avoiding foreclosure, at any time prior to a successful foreclosure auction sale taking place.   Knowing this gives you peace of mind to be able to tackle the foreclosure and successfully handle it without ever being foreclosed upon or evicted and enduring the pain and stigma associated with it.
  
  
• Timeliness of Listing the Property for Sale.   In line with all that has been mentioned is Action.  This cannot be stressed enough.  The Seller must come to the realization that the most effective way of avoiding foreclosure in New York is to just take Action by immediately Listing the Property for Sale. Waiting has many unforeseen perils especially in a downward market such as the one we have just entered.   Unexpected events or tragedies do occur that might preclude or prevent the successful closing of a property; so timeliness is paramount.
  
  
• Bankruptcy Issues.  If there is a pending bankruptcy proceeding the Bankruptcy Court will have to be notified of your intent to sell and an order authorizing the sale will have to first be obtained before the sale can be closed. A Chapter 13 proceeding will necessarily involve the appointed Trustee and a 10 percent commission may be due him.  This will necessarily impact the net equity to be derived from the sale.
  
  
• Involvement of Foreclosing Creditor.  Aside from the lender having to provide an updated payoff letter to be utilized at the closing they will have to additionally provide a letter indicating that they will release the recorded Lis Pendens against the property before the closing can be finalized and in some cases before it can even be scheduled.
  
  
• Why an Experienced Foreclosure Realtor® is necessary.  We, at Short Sale Realty, Ltd., are The Ultimate Short Sale Broker.  Our vast experience, over decades, encompasses all aspects of foreclosure and bankruptcy proceedings and distressed sales.  This unique background allows us to carefully navigate all the intricacies of listing and selling distressed properties to the great benefit of our Sellers.  That is why our slogan is “Stop the Sale – Close the Deal.”.