A Short Sale, is the term commonly used when a home owner is selling a home for less money than the balance owed on their mortgage. Sometimes this is referred to as a “short payoff”.

This type of sale is one where the lender allows the property securing a mortgage loan to be sold for less than the existing loan balance due to several factors such as the borrowers financial circumstances, the property’s physical condition, and the local real estate market conditions.

If a homeowner purchased their home five years ago, and took out a $400,000.00 mortgage and their home which is only worth $350,000.00, they would need to consider a short sale if they had no additional funds to payoff the mortgage balance, and closing costs. In this example, the seller is considered to be “upside down”; the home is worth less than the outstanding mortgage balance.

In some areas, as many as twenty-five (25%) percent of the homeowners owe more on their mortgages than the value of their homes.

A recent report on the sale of existing homes indicated that almost forty (40%) percent (four out of ten) sales involved homes that were either short sales, or foreclosures. With all of the upside down sellers who want to sell, it seems evident that for now, short sales are going to play a major role in the real estate market.

If you have any questions, concerns or just want more information on Brooklyn Short Sales email or call  (718) 377-7798 to speak with Michael Reinhardt.

DISCLAIMER:

The use of the Internet or this forum for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this forum. This information is for general information only and should not be relied upon without consulting with an attorney.

With over 25 years of experience in assisting home buyers and sellers, I hope to provide a forum for real estate questions pertaining to the purchase and sale of real estate.

I encourage my blog subscribers to post any questions they wish to be answered related to the topics posted, as I will discuss any real estate questions asked through the comments section of this blog.

Additionally, with the growing market of short sale transactions, I hope to provide much needed information and comfort to the homeowners who find themselves involved in a short sale transaction.

While my law practice is mostly focused towards Brooklyn real estate, I assist clients all over the State of New York with many different legal concerns.

If you have any questions, concerns or just would like more information, please visit my website, email, or contact my office (718) 377-7798.

DISCLAIMER:

The use of the Internet or this forum for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this forum. This information is for general information only and should not be relied upon without consulting with an attorney.