Short Sales: A Viable Option for Distressed Brooklyn Real Estate
I know the words “short sale” may scare you. But please take just a minute to learn why short sales have become a viable option for your Brooklyn real estate if you’re considering foreclosure.
Once deemed difficult to get, hard to close and rough on the credit score, corrective measures have been taken to improve the valued short sale. And, the winners are those who understand how short sales work in Brooklyn real estate.
If you are faced with a house underwater or considering foreclosure or a short sale option, please understand the game has changed.
Short Sales Before versus Now
In early 2009, the typical short sale had less than a 50% chance of success. Banks were skeptical, unprepared and unwilling to accept losses. No longer!
Thanks to aggressive changes made by the Federal Government, the short sale has become the preferred option for distressed buyers, sellers and lenders.
- The administration has thrown incentives to first mortgage holders, second mortgage holders and new lenders.
- Primary lien holders in who agree to a short sale can receive as much as $3,000 from the government.
- Secondary lien holders, who previously were often asked to step away empty handed, now can receive up to $6,000 for formal releases.
Additionally, there used to be more serious credit devastation for the short sale seller. In some cases, outright releases were not provided. The administration has stepped in to protect these distressed sellers. Today’s short sale has less credit impact on the seller as would the credit impact of a foreclosure.
Now that short sales are a viable option, the market has exploded. Short sales increased by 4% between November, 2009, and February, 2010. Activity will only continue to increase.
If you would like to find out whether a short sale could benefit your distressed Brooklyn real estate, give me a call now at (718)253-9600 ext.206 or email me at [email protected]
Tags: brooklyn real estate
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