Latest News and Reviews

Short Sale To Avoid Foreclosure

There is a growing phenomenon in the United States specifically in the Newyork City’s outer boroughs where lenders or financial institutions are trying to recover whatever balance they can from mortgages which are turned into defaults. There are very few options available than putting the property on short sale when the value of the mortgaged property has fallen below the loan amount and borrower is unable to meet the loan obligations.

This Short sale is quite different from a foreclosure where a seized property goes through several processes. Most of the times, it is to gain the maximum amount of money owed on a property that banks and lenders go for short sales route. Lenders always look to weigh effectiveness of both short sales along with foreclosure whenever the property is turning towards distressed one. While going for short sale, the lender has to prove that the defaulter comes into special category of ‘extreme circumstances’ and credit rating of the concerned borrower is affected.

According to Christopher Gerstle of United Short Sales, short sale doesn’t involve bidding wars like the case in foreclosure process. He pointed out the people always looking for buying the distressed properties and opined that short sales could prove to be one of the easiest sales for brokers in the United States.

United Short Sales has been an active participant in the short sales procedures in Westchester ad Long Island. Due to their long list of buyers, the company had a great success in closing short sales deals with an approximately 70 percent success rate. It is considered to be a volume game. The whole procedure of short sales can take as little as 45 days but most of the times 90 to 120 days to close the deal.

In the first quarter, there has been a rise in the foreclosure filings as per the recent report on Foreclosure Market by online real estate player Realty Trac. On a year on year basis, default notices, auction sale notices and bank possessions shoot up by 24 % in the same quarter. California, Florida, Nevada, Arizona and Illinois have reported almost 60 percent of the total of more than 800,000 foreclosure filings cases reported in the first quarter.