There’s a lot of confusion surrounding short sales, so I thought I’d answer some of the questions I’ve received from clients, owners of Brooklyn real estate and blog readers.

Q:  What is a short sale?

A:  A short sale is when a lender agrees to accept less than what is owed on a home.  For example, you owe $300,000 on your home loan, but your lender will allow you to sell your home for $250,000.

Q:  Who makes up the difference between the short sale price and the amount owed?

A:  In the past, the owner of the Brooklyn real estate would receive a 1099 income statement at tax time.  The “forgiven amount” would then be counted as income subject to income tax.  This left homeowners in debt to the federal government for the tax owed on that amount.  Now, with the passing of the Mortgage Forgiveness Debt Relief Act and Debt Cancellation, the short fall on a primary residence is not counted as income.  This eases the financial hardship of those who are already struggling.

Q:  Does a short sale impact your credit the same way as a foreclosure?

A:  No, the impact of a short sale is milder on your credit than a foreclosure.  Short Sales usually reduce your score by about 80 to 250 points and only stay on your record for around 5 years.  Compare that to foreclosures which reduce your score approximately 250 to 400 points and remains on your record for 10 years.

Q: How do I qualify for a short sale on my Brooklyn real estate?

A:  Contact your lender as soon as you know you are in financial trouble.  Government programs, particularly the Home Affordable Foreclosure Alternatives (HAFA), are designed to make short sales more attractive to lenders by giving them incentives for allowing a short sale over a foreclosure.  However, if you allow your loan to become delinquent (more than 60 days), lenders are less likely to grant a short sale.

Q:  Can I sell my home as a FSBO and still qualify for a short sale?

A:  No.  Lenders rely on “broker opinion” as to what the home is worth at this time.  You need to hire a real estate professional that has experience with short sales.  Short sales take longer to close and properly handling the sale can make a difference in getting an offer accepted by your lender.

If you are facing the possibility of foreclosure and  looking for an experienced, energetic, resourceful  Brooklyn real estate agent , let me help you discover the options that are available to you. Give me Charles D’Alessandro your Brooklyn Realtor® with Fillmore Real Estate a call at (718) 253-9600 ext.206 or email me at [email protected]

I think this is an idea! With these thousands of home foreclosure, the government and the banks are looking for a solution. Here is one. The war veterans are across the globe protecting our lifestyle, who better to take advantage of the situation.

The Veterans deserve the opportunity of home ownership. I thing they pay their dues and besides it will help get the inventory off the market. I would love to hear opinions on this issue. Lets reward their service and help the country at the same time! Pass this around if you agree and see if we can creat a movement to help the Vets!

Charles D’Alessandro

[email protected]
tel 718 253-9600
fax 718 253-9573

Brooklyn Real Estate Blog Benefits of Exterior Lighting for Brooklyn Real Estate

It’s fall 2009, the leaves and the mercury are beginning to fall.  With the real estate market thawing out a bit and the interest rates staying at a steady low. Buyers are shopping for the next best deal, are you as a Realtor prepared?  In the past years with prices on the rise and sales happening at record paces the only thing a real estate agent really had to know was: if a buyer didn’t buy today, the price would be higher tomorrow. In today’s real estate market there is caution, buyers and sellers are able to research and find much of the same information agents have.  Yes, its a very transparent world. So as a Realtor are you prepared?  A good Realtor is priceless to the process.  A good Realtor should strive to improve everyday by research and education (not just how to sell and fancy closing lines). Realtors must study technology, as well as research the market trends and keeping up with mortgage options.  The Realtor of today and of the future is here to consult as well as help interpret the information with their clients.  This takes hard work and commitment  to be the best you can be. So I guess what I’m saying fellow Realtors: the public expects and deserves more!  The product you are selling is you!  Are you the best you can be? Do you choose to be just  a Real Estate Agent or a Real Estate Professional?

by Charles D’Alessandro and Brooklyn Real Estate Sales

To learn more about me and how I can help you achieve your real estate goals, read my Brooklyn Real Estate newsletter