Hello and welcome to our Manhattan luxury real estate blog. Halstead Property, LLC is one of the most visible and fastest growing residential real estate brokerage firms in New York. Headquartered at 770 Lexington Avenue, the firm has more than 600 sales and rental agents throughout eleven prime retail offices in New York City including six in Manhattan.

What is the “Short” in a Short Sale?

Jul 08, 2009 | 0 comments |

Does it mean a quick sale? No. A short sale is a longer process than a typical real estate transaction. In reality, it can take 5 – 6 months with no guarantee that the offer will be accepted.

Does it mean the buyer gets a fabulous deal? Not necessarily. While lenders are willing to consider offers to purchase that are slightly below fair market value, they aren’t willing to take a low-ball offer.

The short sale must make more sense than a foreclosure procedure. If a prospective purchaser makes an offer that the lender sees as less cost effective than going to foreclosure on the property, at the end of the process the offer will be rejected.

Short sales are discounted payoffs of a mortgage. They occur when the amount that the property can be sold for is less than the amount owed on the mortgage. The lender or lenders must consent to accept less than they are owed to release the lien. It’s the bank that comes up short.

Short sales are occurring all across the country, but in Manhattan we have seen very few. If you are searching for a well-priced property, I recommend viewing the Halstead Value Factor.

Posted By: Sharon Michnay

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