Real Estate Specialist

Massapequa NY Short Sale Market Report - 2008 Through 2011

Massapequa real estate market is a strong one. There are short sales though. But, there aren't many and the ones that do come onto the market, go under contract fairly quickly.

If you are looking to buy a short sale home in Massapequa, keep in mind that they sell. You are not going to get a steal. Short sale homes are priced just like any other resale home. Short sale homes in Massapequa are not fixer-uppers. The chart below explains speaks for itself:

As you can see in 2010, seven short sale homes were listed in Massapequa and six sold. This chart is for single family homes in the Massapequa School District only.

Call me today (631) 703-0201 to find out what your Massapequa NY home is worth in today's market.

Massapequa NY Short Sales

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.