Five Towns Real Estate Blog

Just what some of you have been waiting for....

The Senate has voted to extend the $ 8000 First Time HomeBuyer Tax Credit and has added a $ 6500 Tax Credit for REPEAT Buyers who have been in their current home for at least 5 years.

CLICK HERE to read the complete article in Newsday.

So whether you are looking for a FIRST home or to upsize or down size in our area of the Five Towns (Woodmere, Hewletts, North Woodmere, Lawrence, Cedarhurst and Inwood) this is GREAT news!!!

People are so quick to bitch and complain, that is was such a pleasure to find the following in my e-mail box this morning. A copy of an email a seller of mine sent to my Broker, we have had her co-op in Lawrence, NY on the market for over a year. An unexepected, unrequested testimonial.

"Dear Mr. Broker,

You have probably heard from Lenny or Donna that we have a signed contract for my mother's apartment at XXXX Avenue.  Though there are still a few hurdles to get over, I believe (with fingers crossed) that this sale will go through.

So this seemed an appropriate time to write in praise of the team that made this sale possible.  Both Lenny and Donna were a pleasure to work with, professional, caring and extremely responsive.

As you know, this sale has been a long time coming.  Through all this time, Lenny treated the apartment as though it were his own.  I'm sure he has more lucrative listings, but he more than lived up to his promises made when he signed on as the agent:  his many Open Houses, following up with buyers, trying new sales techniques.  Even, I understand, vacuuming the floors when they needed it.  His advice in dealing with offers and potential buyers was always thoughtful and thorough.  My attorney even volunteered how highly she thought of him and we then spent several minutes praising him.

Similarly, Donna has been unfailingly helpful.  Answering all of my queries in a very timely and thorough way.  And always willing to try some new sales strategy, either of her own devising or building on a suggestion I made.  She made several trips to the apartment to make it look better and seemed to really care about it.  Her advice about strategy was always thoughtful, pragmatic and helpful.

I know that this process has been almost as frustrating for them as it has been for me, but they hung in there with good humor, professionalism and integrity.  I would be happy to offer my recommendation in any way it would be helpful to them.

I will close by thanking you for the meeting you held with me several months ago when sale's prospects looked especially bleak.  It was a comfort to know that you were accessible and willing to explore various options."

Was just a nice breath of fresh air when I was getting frustrated.

In Short - A short sale will negatively affect your credit, but not nearly as much as a foreclosure.

Many homeowners today are in a house that is worth less than the mortgage balance. Due to today's economic situation, many in this situation are not able to pay their mortgage. That normally leaves 2 choices - Short Sale or Foreclosure.

A short sale simply means that the amount of the balance owed on your mortgage is greater than the current market value of your home. Homeowners who are in financial difficulties and facing foreclosure often opt for a short sale in order to escape the foreclosure process.

In a short sale the lender agrees to accept less than the amount you owed on your mortgage. You need to prove hardship to have any chance of completing a successful short sale. The hardship needs to show why you can no longer make the payments and that you cannot sell the house and net more than is owed. As part of a short sale package the bank will require tax returns, work information, a hardship letter and more paperwork. The lender must agree or you're out of luck.

The effect on your credit report

You will suffer much more damage to your credit report with a foreclosure than you will with a short sale. It will also take considerably longer to restore your credit rating once your financial difficulties are resolved. In general, here's what happens:

          For a Foreclosure
Quite often this means a loss of between 200-280 points on your FICO score. It may be as long as three years before you can qualify for another home loan.

          For a Short Sale
Expect to suffer some credit score damage, but nowhere near as much. Loss of FICO points will be around 75-125 and your report will show it listed as a ‘pre-foreclosure in redemption' which is far less negative. You will most probably be able to secure a new home loan in about a year and a half.

In any case, it is a good idea to consult with a lawyer, a tax accountant ccountant (CPA) as well as a good Real Estate Agent who is experienced with short sales. Get the help of professionals.

You Need An Experienced Short Sale Agent!

We have successfully completed quite a few short sales. We can help you out of your difficult situation. All information is strictly confidential, give us a call and let us help you.