Lester and Associates: Short Sales, New York
If you are a homeowner who can no longer afford to keep your mortgage payments current, you may have an alternative to bankruptcy or foreclosure. One such option is a short sale, wherein you’ve found a buyer for your property, but his offer isn’t enough to cover your outstanding mortgage balance. If your lender agrees to a short sale, it will release its lien against your home so you can sell it for less than you owe. In many cases, the remaining balance of your mortgage is forgiven.
If you think a short sale might work for you, you need attorneys who are experienced with short sales in New York. The attorneys at Lester & Associates have negotiated many short sales with various lending institutions. We’re experts at negotiating short sales in New York, and we’re here to help.
Under What Circumstances Will a Lender Agree to a Short Sale?
A foreclosure is expensive and time-consuming, often taking over a year to complete. Because taxes and property insurance must be maintained even when a homeowner isn’t making mortgage payments, lenders must carry these costs from the time of default until the property is foreclosed on and resold. Lenders can avoid this expense by agreeing to a short sale instead.
How Much Will the Lender Accept for the Property?
Many homeowners want to know in advance how much their lender will accept in a short sale. If the outstanding mortgage is $250,000, will the lender accept just $200,000? Unfortunately, there’s no easy one-size-fits-all answer. Each situation is different. The lender will generally compare the offer against the alternative, which is letting the home go to auction as a result of foreclosure. Buyers at foreclosure auctions typically base their bids on the fair market value of the property, and they usually want to pay less. Lenders are aware of this. If the short sale offer reflects the property’s current fair market value or is close to it, the short sale may be approved.
A Short Sale May Be a Better Alternative Than Foreclosure
If you can’t afford to make your current mortgage payments, you may be left with either a short sale or foreclosure as your only options. A short sale may be the lesser of two evils. It can save you months of stress, embarrassment, annoyance and fear. Short sales are private, as opposed to foreclosures, which are public. You might even avoid being held responsible for any deficiency balance — the difference between what your home sells for after foreclosure and the mortgage you owe.
If you’re considering a New York Short Sale, it’s important to fully understand the pros and cons of a short sale versus a foreclosure. You need an attorney who is aware of all relevant New York laws and how they might impact a foreclosure or short sale. If you’re on Long Island, Nassau or Suffolk County, and would like to explore your short sale options, call (516) 357-9191 or fill out a contact form to be contacted by our experienced short sale attorneys at Lester & Associates for a free consultation.