With their article entitled The Roller Coaster Ride Called a Short Sale, the NY Times has examined the phenomenon’s arrival in Manhattan. Of course, I posted Short Sales Have Come to New York City in March of 2009. That is when I referred one of the first ever in Manhattan to my esteemed colleague, Eileen … Read More…
Author: J. Philip Faranda
Strategic Defaults in Westchester County
Categories: Strategic DefaultsWikipedia defines the term Strategic Default as “the decision by a borrower to stop making payments (i.e. default) on a debt despite having the financial ability to make the payments.” (my emphasis added) Given the huge amount of attention given to the practice, I thought that I would offer my own observations on what I … Read More…
What Qualifies as Hardship in a Short Sale?
Categories: Short salesTags: hardship, New York short sale Realtor, Westchester short salesWhat qualifies as hardship in a short sale? I get this question fairly often, and it should be addressed. First, I’ll tell you what does not qualify as hardship, and that is simply being underwater. If you owe more than you are worth, being upside down alone is not adequate hardship to get a short … Read More…
Dealing with Second Mortgages in a Short Sale
Categories: Short salesTags: 2nd mortgages, HAFA, New York short sale Realtor, New York short sales, Westchester short sale Realtor, Westchester short salesNew HAFA rules are forcing home sellers to negotiate directly with subordinate liens, or, in common terms, second mortgages, on their own, according to Bankrate.com. The way the rules are written, there is a financial incentive for the 2nd mortgage to settle and release the lien, but the onus of getting assurances that the bank … Read More…
The Wall Street Journal Agrees with Me on Short Sales
Categories: Short salesTags: HAFA, New York short sale Realtor, New York short sales, Wall St Journal, Westchester short sale Realtor, Westchester short salesAmy Hoak’s timely article on HAFA and short sales in yesterday’s Journal concludes with timely advice that I wrote myself the very same day. The article focuses on the many pitfalls of short sales, as well as the new HAFA (Home Affordable Foreclosure Alternatives) regulations which are set to go into effect on April 5, 2010. … Read More…
What Makes a Short Sale Specialist?
Categories: Short salesTags: New York short sale Realtor, New York short sale specialist, Westchester short sale Realtor, Westchester short salesWhen I closed my first short sale in 1998 I had no idea that 10 years later I’d be doing them with any regularity. At that time, short sales were uncommon; they remained uncommon through 2006. Even in 2007, other agents needed to be educated about what a short sale was, how long it took … Read More…
New Federal Short Sale Program Starts April 5
Categories: Short salesTags: Federal short sale program, New York short sale Realtor, New York short sales, Westchester short sale Realtor, Westchester short salesThe NY Times is reporting on a new Obama initiative to create a financial incentive for banks and home sellers alike to do short sales. A few highlights from the article: Program starts April 5, 2010 Lenders will be “compelled” to accept short sales. We’ll see about that. The administration wants to streamline the process. We’ll … Read More…
Short Sale Fraud: By Banks!
Categories: Short salesTags: New York short sale Realtor, New York short sales, short sale fraud, Westchester short sale Realtor, Westchester short salesCNBC is reporting that some banks are being accused of, of all things, bank fraud in short sales. Those of us who sell short sales know that the hardest cases are often the ones with subordinate financing, or in layman’s terms, a second mortgage. If you owe $500,000 on a house with a $425,000 1st loan and a $75,000 … Read More…
Government: We Want 10 Day Short Sales
Categories: Short salesTags: 10 day short sales, New York short sales, Westchester short sale RealtorThere is a new US treasury guideline that will, according to a report, mandate that banks make their decision on a short sale in 10 days. The new rule also proposes a $1500 allowance to the seller for moving expenses. I have said before that it shouldn’t take a lender more time to decide on a short … Read More…
Will Banks Finally Speed Up Short Sales?
Categories: UncategorizedTags: New York short sale Realtor, New York short sales, Westchester short sale Realtor, Westchester short salesThere is some debate. I don’t think they will, for a variety of reasons, not the least of which is that they probably fear that if they make them easier, more people will try for one. Since the other side of the deterrent is foreclosure, and since loan modifications aren’t exactly saving the economy, status … Read More…