Nanuet Homes and Condos

Better Homes & Garden Rand Realty. Michael Truiano 845-480-2366, Nanuet NY 10954

Nanuet Real Estate Short Sales and Foreclosures

Nanuet NY Rockland County Real Estate Home For SaleA short sale exists when a seller attempts to sell a home for less than the their current mortgage value.  For instance if someone purchased a Nanuet Colonial in 2005 they probably paid near $650,000.  With an 80 percent loan to value they would have financed $520,000.  In 2011 that same Nanuet Colonial could effectively sell on the open market for  $500,000.  Putting aside closing costs and expenses the sellers would be short $20,000.  ($520,000 loan minus $500,000 current value.)  In the real estate world these sellers are also considered upside down or under water.

How does a short sale affect a buyer?

Ultimately, any offer on a short sale needs to be approved by the seller’s bank.  This approval rarely materializes quickly.  A normal real estate transaction can be negotiated within a 24 hour period but a short sale offer often wont even receive a response for weeks.   The actual approval and closing could be delayed as much as 6 months.  Based on this information a short sale would not be recommended for a buyer that has an absolute deadline in which to move.  (I.E. job relocations, rental lease expiration or a having already sold an existing home.)  Since these factors diminish the buyer pool available for this type of transaction it naturally brings down the hone value compared to comparable homes that could sell quickly (lowering the demand lowers the price.)  With that being said if a potential buyer for a Nanuet or Rockland County home for sale does not have any pressing deadline in which to move they could capitalize on the lower prices.

Comments are closed.