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Lindenhurst NY Short Sale Report April 2011

 

Lindenhurst NY Short Sale Report April 2010

This short sale report for Lindenhurst NY is from 2008 through April 2010.

As you can see from the chart, 33 short sale homes came onto the market in Lindenhurst NY in 2009 and 24 of them sold.

In 2010, 55 homes were listed as short sales and 30 sold.

So far for 2011, 30 homes were listed as short sales and only 11 have sold.

Short sales in Lindenhurst NY are not going away anytime soon.

Currently, there are 276 homes on the market. And out of those 276 homes, 64 of them are short sales. That means 23% of all the homes on the market in Lindenhurst NY are short sales. That percentage has come down by 4% over the last 6 months. That is a good sign so far. Some areas across Long Island have been hit hard and those markets are at 50% of the homes being short sales.

Whether you are selling or buying a short sale in Lindenhurst NY or elsewhere, please make sure your real estate agent knows what they are doing.

Got questions about short sales? Call me anytime with your questions: (631) 703-0201

Lindenhurst NY Short Sale Market Report 2008 - February 2011

As you can see from the chart, short sales started booming in 2009. More short sale homes in Lindenhurst NY closed in 2009. Meaning, 33 were listed then and 24 closed. Not a bad ratio.

But, with more job losses since then, the banks are flooded with short sale files on their desks and that is why I haven't seen a short sale home close in less than 90 days.

In 2010, 55 homes were listed as short sales in Lindenhurst NY and 30 closed. 30 is better than nothing.

For 2011, 14 short sale homes have come onto the market for Lindenhurst NY and so far seven have closed.

Currently, there are 64 short sale homes on the market in Lindenhurst NY. Listing prices range from $150,000 to $379,999. If you are looking to buy a short sale home, remember that short sale homes are priced at fair market value. There are no steals to be had unless the home is in dire straights condition-wise. I looked at all 64 listings and this is what I found:

2008 - There are still two short sale homes on the market. Six were listed and none sold. What happened to the other four? Foreclosure or loan modification.

2009 - 33 were listed and there are eight still on the market. 24 sold in 2009. Looks like one home went to foreclosure or they were able to do a loan modification.

2010 - 35 are still for sale and 30 closed. With 55 listed in 2010, looks like a good amount of homes went into foreclosure or maybe some did loan modifications and they were able to keep their homes.

If you are thinking of selling your Lindenhurst NY as a short sale, call me (631) 703-0201 so we can discuss the details and the paperwork that your bank will need.

I would really like to see the gap between short sale homes listed and short sale homes closed to become smaller. I update this chart every month for the short saleinventory in Lindenhurst. It will be interesting to see the numbers at the end of this year.

What is a short sale? A short sale is when you have to sell your home for less than what you owe on your mortgage.

Steps For A Short Sale

First, you need to find a real estage agent that really knows the short sale process. It's a delicate process and there is a lot of paperwork and financial documents that are needed that your bank will want before approving a short sale. If your bank is not participating in the short sale program (HAMP) then the bank will not approve the short sale of your home until we have a buyer for it.

Documents Needed

1. Hardship Letter - Your bank will want to know why you have fallen behind in your mortgage payments. Loss of job, divorce, death of a spouse or significant other, sickness. Banks understand these situations. Banks will not understand dishonesty so just be honest from the start.
2. Proof of Income - Most banks require at least 2 months of paystubs and 2 years of tax returns. Statements from all assets including checking accounts, savings accounts, money market accounts, stocks and bonds. You get the picture. Disclose all including explanations of large deposits and withdrawals. Your bank will ask!
3. Comparable Market Analysis - Your real estate agent will do this. It's best to have sold comparisons for the last six months. Right now, we are in a declining market and those comps will show that. Also, having current listings and under contract homes in this analysis is needed. 
4. Letter of Authorization - Your real estate agent must be able to communicate with your bank. Authorizing them to do so will make the short sale process easier (hopefully). You must include the property address, loan #, your social security # (some cases, not all), your name, the date and your agent's name and contact information.
5. Financial Statement - I will provide you with a financial statement for you to complete. The bank will wan this.
6. W-2's and/or 1099's - The last 2 years are required.
7. Any liens on your property, alimony and/or child support documents.
8. 6 months of P&L (profit and loss) statement if you are self-employed.
9. Mortgage Statement - Your most current statement is needed and any other documents that show other home loans.
   

Documents Need When You Have A Buyer

1. Purchase Agreement, Listing Agreement and if the buyer is all cash, then that buyer has to submit proof of funds. If the buyer is taking a mortgage then they have to submit a pre-approval letter. Your real estate agent will let the buyer's agent know all this. Your bank will also want the Buyer's name and contact information. I have a short sale buyer now on a listing and the bank wanted the first 5 digits of their social security #. 
2. Please note that just because you accepted the buyer's offer, doesn't mean your bank will. They will negotiate just like you would have under normal circumstances. Hopefully, the buyer won't run away from that.

If all goes well, and it should, the bank will approve the short sale and then go to closing. In between this time, your bank may want more information from your and/or the buyer. Whatever the bank wants, give it to them ASAP. Any delays could result in the short sale being held up for going to closing.

And, it's a really, really, really good idea to hire a real estate attorney that knows short sales!