A client forwarded me the link on Inman News to this broker in Nevada who blames short sale agents and sellers for the mess. Prices keep falling because the short-sale agents are listing at 5 to 10 percent below comps in order to try to get an offer, and often are accepting offers at even … Read More…
Author: J. Philip Faranda
When Everyone Walks Away with Money Exept the Seller
Categories: CommentaryTags: avoiding foreclosure, preserving credit, proceedsJust about every home sale is stressful on the seller. A short sale, given the higher stakes and financial ramifications, often has even more stress for the seller than a typical transaction. On a few occasions, I have had a short sale client lament that they are “left out” in a way, in that everyone … Read More…
Please Take Off Your Clothes
Categories: Commentary, Short salesTags: avoiding foreclosure, New York short sales, questionsI just finished my first day of CDPE (Certified Distressed Property Expert) class, and am reflecting on one of the more profound insights given by the instructor, Mark Boyland. Mark, who is an excellent presenter, compared the difficult issues we have to sort out with distressed homeowners with the rather matter of fact way a doctor handles another … Read More…
How Much of a Loss Will The Bank Accept in a Short Sale?
Categories: Commentary, Short salesTags: Bank Loss, New York short sales, Westchester short salesHow much of a loss will the lender accept in a short sale? I am asked this from time to time by consumers and agents alike. We always disclose when a property is being sold subject to lender approval, and I understand the rationale for asking about the numbers, especially with the high dollar value … Read More…
Buying a Short Sale: Market Value, Not a Steal
Categories: Short salesTags: buying a short sale, Westchester short salesAs short sales have become more common and are even showing up in new markets in Westchester, I find myself educating my colleagues on what can and cannot be done in order to have a successful closing. Lately, we’ve received offers that are unrealistically low; essentially, what the buyers do not understand is that the lender is … Read More…
Will I Have to Pay Taxes After a Short Sale?
Categories: Short salesTags: 1099, Mortgage forgiveness debt relief act, taxes, Westchester short salesThe concern of some homeowners looking to do a short sale that a 1099 issued from the bank will expose them to a new problem, namely a huge income tax bill on the forgiven debt, is understandable. With home values in Westchester in 2010 at a median of $630,000, a six figure 1099 is entirely … Read More…
Recent Media Appearances
Categories: Short salesTags: Mt Vernon, New York short sales, Strategic Defaults, Westchester short salesI have been prominent in two separate stories in the media this past week regarding default properties and their effect on the market and the borrower. This past Sunday I was in the New York Times, and on Tuesday I was in a nice piece on AOL Daily Finance. The Times piece centered on strategic … Read More…
How Do You Price a Short Sale?
Categories: Short salesTags: avoiding foreclosure, New York short sale Realtor, pricingAfter two similar discussions the past week, it would be wise to address how a short sale should be priced. After all, if the offer submitted to the lender is subject to approval and therefore not a certainty, all the more that the asking price is also a hypothesis. It is. But, as educated guesses … Read More…
Can an Owner Reject an Offer in a Short Sale?
Categories: Commentary, Short salesTags: avoiding foreclosure, low offers, New York short sales, Owners rights, rejecting offers, Westchester short sale RealtorContrary to what some may think, an owner is not obligated to submit every offer to the lender for approval in order to do a short sale. As a matter of fact, there are offers that an owner should never submit to the lender. That is the owner’s right, as they still hold title and … Read More…
NY Times: Banks Resisting Short Sales
Categories: CommentaryTags: avoiding foreclosure, Bank of America, foreclosure moratorium, New York short sales, New York TimesThe top emailed story on the New York Times website today, Short Sales Resisted as Foreclosures Are Revived, is over 2 days old. That it remains pinned as the top story to share is significant, especially to anyone in New York who is facing foreclosure or in a short sale. Bank of America has, after … Read More…