Short Sale Realty

Foreclosure Help In New York

admin — Sun, 30 Oct 2022 02:40:31 +0000

Foreclosure Help does not necessarily mean that you need to fight or litigate the foreclosure proceeding. Listing or selling the property with an experienced Realtor has the ability to achieve many goals and resolve the foreclosure proceeding.

There is always the absolute right to convey and sell the property at any time prior to the auction sale taking place thereby satisfying the foreclosure proceeding in full. This is the right of redemption. In fact, it will not appear on the credit report as a foreclosure. See https://nycourts.gov/courthelp/Homes/foreclosureJudgments.shtml.

Many professionals, across different disciplines, advocate to litigate, file Orders to Show Cause, Chapter 13 Bankruptcies and even loan modifications.

While, in some cases the results might be beneficial, unfortunately, more often than not they do not achieve any results. In fact, they end up harming rather than helping.

For instance, there are lost expectations, derogatory credit issues, wasted time and money. As the foreclosure litigation lingers on it becomes even more expensive. The homeowner becomes responsible for all the legal fees the foreclosing lender incurs.

Moreover, there is always the possibility, after an auction sale takes place, of the foreclosing creditor requesting a deficiency judgment if the sale does not satisfy the amount owed to the lender. See https://nycourts.gov/courthelp/Homes/foreclosureDeficiency.shtml.

Even worse, if the lender does obtain a money judgment it would, in New York, be good for up to 20 years. Thus, giving the creditor the ability to garnish wages or execute on additional property many years into the future.

It is understandable to try to resolve the foreclosure issues if the delinquency is minimal and even recommended and desirable. But, if the default has extended for a prolonged period of time it is then very difficult to make up those lost payments unless the financial situation has radically changed for the better and more income is now available.

Selling the property resolves all these issues and provides an opportunity to move on without any adverse effects. In the case where the property is worth less than the market value a Short Sale process can be employed. There is no need to outlay any money to any professionals. A skilled and experienced Realtor can properly handle all aspects of a Short Sale without any cost to the homeowner.

The foreclosing lender will absorb all the costs of the sale including closing attorney fees, transfer taxes, title costs, real estate commissions and even relocation costs. It becomes a win – win situation for all involved.

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The Difference Between a Short Sale & a Foreclosure

admin — Wed, 26 Oct 2022 13:41:54 +0000

A short sale is where the amount owed against the property is more than the value of the property. A foreclosure sale is where the property has been foreclosed due to a default and a creditor forecloses it’s lien against the property. The property is then sold at an auction sale and is thus foreclosed upon.

A short sale occurs when the homeowner, typically thru a Realtor®, files a short sale package with the lender requesting them to accept less than what is owed on their lien. During the process the lender will do an appraisal of the property, request financial information from the homeowner including tax returns, bank statements and income.

Once all the information is collected the lender/bank will make a decision as to whether they will approve the short sale. Upon approval, all foreclosure proceedings will be stayed and the lender/bank will allow the homeowner to obtain a purchaser if one has not already been obtained.

If the approval is obtained sufficiently in advance of a scheduled auction sale many times the lender/bank will adjourn or forebear from scheduling an auction sale and allow the property to be conveyed under the approved short sale.

If the property is conveyed pursuant to a short sale agreement the homeowner will convey their deed to the buyer as with any conventional sale. No foreclosure sale takes place and no foreclosure will show on their credit report.

If the property is foreclosed upon, without an agreement with the lender, the foreclosure will show on the credit report and it will be between 3 and 7 years before the homeowner will be able to mortgage another property. See https://www.nolo.com/legal-encyclopedia/when-can-i-get-mortgage-after-foreclosure.html. Conversely, with a short sale the homeowner will be able to mortgage another property in as little as 2 years. See https://www.nolo.com/legal-encyclopedia/when-can-i-get-mortgage-after-short-sale.html.

The post The Difference Between a Short Sale & a Foreclosure appeared first on Short Sale Realty.

Why Do A Short Sale?

admin — Tue, 11 Oct 2022 03:06:08 +0000

Typically, but not always, a decision to request a short sale with a lender occurs when the property is in a delinquent status. As it involves a detailed negotiating process the idea will usually be brought up by either an attorney or a Realtor.

The attorney will usually advise to litigate and defend the ensuing foreclosure action. However, most defenses that will be raised will usually only serve to delay the inevitable and dreaded foreclosure auction.

Over the life of a contested foreclosure proceeding the homeowner will continue to accrue all the interest, late charges and escrows including those for real estate taxes and insurance. In the end it is very likely that more will be owed than the value of the property. If, at the end of the day, the lender obtains a judgment of foreclosure and sells the property at auction the homeowner will be responsible for any deficiency and the lender may obtain a deficiency judgment.

While the homeowner, upon retaining the attorney, receives an immediate psychological benefit of believing that the foreclosure will be handled the fact remains that the long term future detriment, as noted above, may indeed outweigh the present immediate benefits.

The real question is: would it not be better to quickly and finally resolve the delinquent mortgage situation instead of living with it on an ongoing daily basis? Rarely does anyone discuss the emotional stress placed on the homeowner, homeowner’s family and even extended family.

Not, in any way, to diminish the role that good professionals play in this scenario there are just too many that advocate that they can be successful with the foreclosure action. This is just a fallacy. Especially here in Long Island, NY.

Increasingly, the Justices in this locale, different from say 15 years ago, will rarely sign any stay orders on foreclosure auctions no matter what the legitimate defense is. So, the homeowner is asked to pay, up front fees of anywhere between $2,500.00 to $7,500.00 to stop a sale when the likelihood of success is minimal.

Another avenue for resolving a foreclosure proceeding is the filing of a Chapter 13 Petition. The detriment to filing a Chapter 13 Petition is that it will be a stain on the credit report for many years into the future and more than 90% of all pro se filings are dismissed so the gains are relatively short lived. The ability to obtain financing will be severely impacted for many years into the future versus selling a property through a Short Sale. See https://upsolve.org/learn/why-chapter-13-is-probably-a-bad-idea/

As long as the foreclosure action is pending it impacts the ability to borrow in the future for another home, for an automobile purchase, and for a myriad of other life issues that necessarily require a modicum of decent credit. However, once the proceeding is resolved, without the property being foreclosed upon, (such as, by a sale – be it a short sale or conventional sale) credit can sufficiently be restored within 2 years to be able to purchase another property.

A sale of the property provides the ability to neatly resolve all these issues! Within the context of a short sale a professional is negotiating with the lender. It thus opens an avenue of correspondence and communication with that lender. Most importantly, once approved, all litigation is held in abeyance whether one is or is not defending the case.

For the homeowner filing a Short Sale, through a Realtor, there is no cost. Moreover, all closing costs, transfer taxes, recording fees, selling attorney fees and brokerage commissions are absorbed by the lender. There is no upfront money that must be paid to a professional. There are no recurring fees. The lender typically will also pay for moving and relocation expenses. See https://www.theforeclosurebroker.

All it requires is for the homeowner to finally realize it is time to make a move in a positive direction and list the property for sale with an experienced and knowledgeable Foreclosure and Short Sale Realtor who will be able to file the Short Sale with the lender.

The homeowner gets to continue to reside in the premises at no cost; there is no need to vacate the property! Only once the buyer goes through all the steps any buyer would typically go through in a real estate purchase is there a need to consider a time for the homeowner to vacate on their timetable. As with any other real estate sale the homeowner attends the closing and transfers a deed. Thus, there is never a foreclosure and none shows on the homeowner’s credit.

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The post Why Do A Short Sale? appeared first on Short Sale Realty.

Short Sale Negotiator

admin — Fri, 07 Oct 2022 01:05:15 +0000

35 years of experience make us the premier professional Realtor® and Short Sale Negotiator to represent homeowners who owe more money on their mortgage than the property is worth. There is no cost to the seller. The creditor pays all the fees, commissions and closing expenses. We even request moving and relocation expenses for the seller. Many Short Sale Sellers have received upwards of 10, 15 and 20K.

One of the best side or tangential benefits of submitting a Short Sale for approval is that it will typically delay the scheduling of a foreclosure auction sale date. During the process, which can become complex, the homeowner gets to continue to reside in the premises. Moreover, when it is time for a closing the Seller closes on their timetable. Thus, the seller has the ability to relocate on their terms not that of a third party.

Other benefits include avoiding a foreclosure on the credit report, avoidance of a potential deficiency judgment by the creditor and increasing your ability to purchase another property in the near future. Peace of mind that you have handled the situation may be the most important benefit yet.

Once approved the creditor will hold the entire foreclosure process in abeyance while the purchaser does all the typical things a purchaser will do such as obtaining title insurance and a mortgage. All the while, the homeowner gets to reside in the premises at no cost.

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10 Steps To Sell Your House To Avoid Foreclosure in New York

admin — Fri, 07 Oct 2022 00:51:06 +0000

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.”.

The post 10 Steps To Sell Your House To Avoid Foreclosure in New York appeared first on Short Sale Realty.