Manhattan - Short Sale Short sales have existed for years. They are more prevalent today for a variety of reasons including recent lending paractices, declining real estate market, and increased foreclosure rate.

What is a Short Sale? A short sale occurs when a property sells for a price that is insufficient to pay back the mortgage(s) encumbering the property. In order to complete the sale, the seller must either (1) come to the closing with cash from othe sources to cover the shortfalls or (2) obtain the consent of the lender or other creditors to satisfy the loan or debt for less than the actual amount due. The forgiveness of debt in connection with the sale of property is commonly known as a short sale. Who is eligible for a Short Sale? The homeowner must be in severe financial distress Each lender establishes its own criteria. There is no set rules and regulations that determine whether a homeowner will be eligible for a short sale. A homeowner may be able to convince their lender to approve a short sale if: The home is worth less than the amount owed, and as a result of changed circumstances (financial hardship) the homeowner may become or already is delinquent on their mortgage payments (2+ months late) The homeowner can demonstrate their inability to make further mortgage payments and that hey are or will eventually be on the verge of foreclosure.  The process for getting a short sale approved The borrower must submit a formal offer to the bank containing a signed contract of sale, an appraisal, a preliminary HUD-1 or closing statement for the pending transaction. A personal financial statement (including tax returns, bank statement and pay stubs) are required to prove financial hardship.

Short Sale - Benefit to Lender It might make more economic sense to take a loss on the short sale rather than go through the process of foreclosure. A short sale is usually faster process a short sale may result in a smaller financial loss to the bank than a foreclosure because of: Attorney and court fees Property damage Cost of carrying property Resale transaction costs Contract and Third Party Approval The contract must state that it is "subject to all necessary third party approvals" Neotiation of a short sale with a lender is generally done through the loss mitigation, pre-foreclosure or loan workout department of the bank. Multiple levels of approval an conditions are common: holders of first and second mortgages HELOC lenders (Home Equity lines of credit) judgement and lien holders tax authorities

For more information and to evaluate whether your listing qualifies for a short sale please contact me for a confidential consultation about selling your Manhattan apartment or townhouse.  contact: Mitchell Hall Associate Broker The Corcoran Group at 917-312-0924 Email or fill out the form below

Thank you for filling out the confidential short sale form below.   Disclaimer: The Corcoran Group is not associated with the government, and our service is not approved by the government or your lender.  Even if you accept this offer and use our service, your lender may not agree to change your loan.  If you stop paying your mortgage, you could lose your home and damage your credit rating.   The fields marked with (*) are required fields. * Name  * required * Address  * required * Telephone #  * required * Email address  * required * Property Type Condominium Cooperative Condop Townhouse Multi-family building * Property address (with apt.#)  * required * # of Bedrooms  * required * # of Baths  * required   Approx square footage   Monthly CC/RET or maintenance   Do you know if you owe more than the property is worth? Yes No   Are you current on your mortgage payments? Yes No   Property description/Comments