As a NYS Licensed Associate Real Estate Broker, I hope to not only occasionally post Bronx Real Estate for sale or rent, but to also share my knowledge about the industry and local market trends using real life examples or situations. The information will be “front line” practical knowledge gained from hands on experiences. I hope the posts will be concise, easy to understand, and interesting. I hope they are informative for potential buyers and those just interested in keeping up with various real estate related topics. Today’s topic is the much discussed SHORT SALE.
Any realty office in today’s market is inundated with clients calling up seeking the infamous “Short Sale”. A short sale is when the present owner, or seller, goes into contract with a buyer on the contingency that the bank will allow the property to be sold for less than the outstanding mortgage balance. There are enough variables to deal with in any real estate transaction, so each contingency is another variable that could “break” a deal. The most common contingency in any real estate contracts is the mortgage contingency which is often enough of a hurdle with how banks are lending money in today’s market. Having an additional contingency were a bank accepts less than the mortgage amount for the sale of a property is another issue to deal with that demands time, patience and finesse. The bureaucracy involved in many of these deals is endless. To be honest it’s often not worth the hassle to someone unless they have a place to live and can, “play the game”, with the bank. Because of the uncertainty and the time factor, these deals are often pursued by professional “flippers” who don’t really need a house to live in and can, “play the game”, with the banks. In addition, the banks do love the all cash buyers, again favoring the “flipper”, since many of the short sales need work before the property is livable and therefore not mortgable in their present condition. The 203K loan is the solution, but an individual needs to be aware of this type of loan and which banks provide them. In order to actually close on a short sale the deal must be “seasoned” and the buyer or agent must know what the bank will accept based on norms, trends and guidelines in the banking industry. This is where a good realtor or broker can make the difference. In any event, with the banking industry in its present condition, nothing is guaranteed.
The property below is a real life example of a one family home in Throggs Neck that is “seasoned” and ready to go. The property sold for $420,000 on 10/24/2006. The mortgage on the property at the time of sale was $398,500. The present asking by the bank is $325,000 in “as is” condition. The house needs about $40,000 to $50,000 to restore it to it’s prime condition. At the present full asking of $325,000 with a 5% interest rate over 30 years and no money down, the monthly mortgage would be approximately $1,750 per month.
The property is a 1920 one family detached frame house on a 25 x 100 lot with a driveway to park your car(s) and a large back yard; great for the kids or family barbeques. It’s located in a coveted residential neighborhood in the 10465 zip code. Current annual taxes, not including exemptions are $2,776. The interior layout is as follows;
First floor: Foyer, living room, kitchen leading to small patio. Patio needs to be replaced.
Second floor: Two bedrooms with full bathroom
Third floor: Finished pitched roof living space, good for an extra bedroom room or office.
Basement: Above ground finished basement including one bedroom, living room, kitchen, laundry room and boiler room.
Additional stats include:
Lot size: 25 x 100 / Regular
Building Size: 16 x 30
Building Sq Feet: 960
(Attic and basement are not included in house sq. footage)
Far / Max Far: .420 / 0.600
The above property is listed with another agent who represents the seller. If interested in the property and you want me to represent you as a buyers agent please me on my cell @ (845) 304-5745 or e-mail me at; email@example.com. As mentioned the property is “seasoned” and ready to go with a $325,000 asking. My hope is that the opportunity is picked up by someone looking for a good deal instead of an investor looking to flip the property. The commission will be paid by the seller even though I will be exclusively representing the buyer.
NYS Licensed Associate Broker
Century 21 Metro-Star
2017 Williamsbridge Road
Bronx, NY 10461
Cell # (845) 304-5745
Office # (718) 794-2327
E-fax: (646) 417-5593