Realities of Short Sales for Sellers  

After the decline in the real estate market in 2008, homeowners throughout the country discovered that the amount they owed on their mortgages was more than their homes were worth. Communities, such as Fresh Meadows, are experiencing real estate sales in which the seller knows that the bank holding the mortgage must agree to accept less than what is owed.

In Fresh Meadows short sales, the seller must submit financial information, the contract of sale, and an estimate of closing costs to the lender holding the mortgage. Included is the amount of money that will be available to be applied toward the payment of the mortgage debt.

Because the seller’s bank is involved in the transaction, a short sale differs from the conventional sale houses in several ways:

• The seller’s bank can decide not to accept the amount offered toward the mortgage debt. If this occurs, the buyer must agree to pay more for the house, or the deal falls through.

• The seller’s bank may accept the amount offered, but insist on the seller signing a promissory note to be responsible for the balance.

• Sellers moving into apartments in Fresh Meadows would be concerned about the impact the short sale has on credit scores. When the bank agrees to accept less in payment of the mortgage debt, it can report this to the credit bureaus as a negative mark against the seller’s credit scores. Poor credit can cost a sellers apartments.

• Most buyers, particularly those moving from apartments and new to owning houses, ask the seller to do repairs as a condition of purchasing the home. Many sellers do not have the money to spend on repairs, and banks will not permit the deduction of the cost from the proceeds of the short sale.

If you are a seller and considering a short sale on your property then you contact me and my team will negotiate with the bank on your behalf to make the process so smoothly.