You may have heard of people staging homes and feel staging is only for large home sales. You can stage any home, especially short sales in NYC. Your job as a homeowner is to help potential buyers envision themselves living in your home. You don’t need to hire an interior decorator to stage your short sale in NYC. Here are 6 tips on how to do it yourself.

Clear Away Clutter
First, clear away any clutter and personal items. Remove family photos, storage boxes, toys, and any other out of place items. Your potential buyers should be able to see their stuff in those spots.

Get Rid of Some Furniture
Clear out some furniture. Each room should have an open feel. A living room is inviting enough with a couch, loveseat, coffee table, and one end table. Place a vase in the corner and a bowl of fresh fruit on the table.

Reorganize Your Furniture
Make a room feel more open by reorganizing your furniture. Keep the furniture off the walls. If you have a beautiful bay window, reface your couch so you can look out into the yard. If its winter, center your furniture to face the fireplace, so families can vision themselves cozy by the fire.

Touch Up the Paint
If your walls could use a fresh coat of paint, do so with a nice neutral color. You can also add contrast by painting one wall a vibrant color.

Deodorize Your Home
When potential buyers come into your home, it should be clean and smell fresh. Make sure there is no dust on the ceiling fans. Buyers are sure to notice that and think what a pain it will be to clean it. Bake cookies or boil cinnamon sticks or lemon peels on the stove a few moments before a showing.

Transform Rooms
Transform bedrooms used as storage rooms so it’s considered a usable living space. If you don’t have bedroom furniture, turn it into a sitting room or study. Add a desk, bookshelf, and comfortable chair. Add a nice area rug to set the stage.

Short Sales in NYC is not bad for everyone. You can capitalize on a short sale in NYC if you have the right team behind you. They should be experts in short sale processes and able to help you get your projects completed faster.

Hire an Experienced Real Estate Agent
You don’t want just any real estate agent on your team. You need an experienced short sale or foreclosure agent in NYC. They have a great working relationship with bank property asset managers. These managers are the ones working directly with REO properties.

A real estate agent also can help you choose the right short sale property in NYC, alerting you of which will sell fastest. They know the areas and what type of homes will do best as a short sale.

A Lending Team
When too good to pass up short sales come your way, you need to have your funding ready to go. That’s why having a lending team of hard money loan lenders can help you with multiple purchases at a time. You also should have conventional financing approval if you will have the property for several months, as the interest would be cheaper than a hard money lender. This money would also be needed to help cover your labor work.

A Refurbishing Team
In order to flip a home, you’ll need contractors on your team who can be ready on short notice. These include plumbers, roofers, electricians, and carpenters. It’s not necessary to have licensed professionals, but they should prove they do have the experience necessary.

Always remember to keep your property looking great at all times. A landscaper may be needed to keep the exterior looking well-kept and a photographer is useful for taking pictures getting the property ready to list online.

Vendors and Suppliers
Flipping short sale properties involves changing out appliances, painting the rooms, and tiling floors. These supplies can add up quickly. Purchasing items in bundles from vendors and suppliers can help you in your refurbishing process. They may also be able to expedite shipment of items you need in a hurry.

An Alarm System Technician
This may not seem like a top team member, but if you are purchasing multiple short sale NYC properties, having an alarm system technician on board offering discounts can save you tons of money. Any vacant home is a target for squatters and vandalism. You need to protect your labor and monetary investment with an exceptional alarm system.

What should you do if you find yourself with an underwater mortgage? That’s how many homeowners found themselves during the 2008 housing crisis. Many homeowners unfortunately did not know what to do or who to turn to for help. They lost their jobs, had high medical expenses, or denied help with their mortgage, such as a loan modification.

Some waited for a foreclosures NYC while others may have chosen to walk away from their homes before a foreclosure. Without the financial obligation, they could start over, right? No, it’s never a good option to walk away and here are four reasons why.

Your Credit Score
Your credit score will be gravely affected by foreclosures in NYC. There are options to take, such as talking to a short sale or a loan modification specialist. There are programs available offering homeowner’s assistance. Walking away will decrease your score and leave you with no justifiable answer if you are ever asked to explain.

It May Take a While to Be Eligible For Home Ownership
Many people are eligible to purchase another home in a few years after a foreclosure in NYC. But, you would be ineligible for a Fannie Mae mortgage until seven years later.

You Could Be Eligible For a Deficiency Judgment
A deficiency judgment is the difference of money earned from the sale of your foreclosed home and the amount of money owed on your foreclosed home. However, abandoning your home and the court process could add on court costs, attorney fees, and additional penalties.

You Could Have a Phantom Title on Your Hands
Some homeowners that have walked away before a foreclosure found out that the bank did not proceed with the foreclosure. The home was not auctioned and that means the owner is still responsible for the home.

They now have a phantom title, because the bank has no way to contact them. These homeowners are now responsible for taxes on the home, any repairs, graffiti cleaning, trash removal, and lawn care. Their wages and tax refunds could be garnished.

To prevent any of this from happening to yourself, just do not abandon your home. Homeowner assistance programs require a homeowner to live in their home. Talk with your lender or a professional realtor and foreclosure agency such as Premier Real Estate NYC.

We often think about the trauma families experience from a foreclosure in NYC. It’s embarrassing, confusing, and stressful. Parent’s main concern is to find a place for their families to lay their heads. It often slips their minds about how will this affect their children’s education.

The 2008 housing crisis affected millions of children. Foreclosures in NYC are an emotional and stressful time for children because they are too young to understand what is going on. They often are not receiving a consistent education.

Academic Performance Suffers
Many times, foreclosures leaves families trying to relocate at the last minute. They are staying with family and friends, in and out of hotels, and unfortunately in poorer neighborhoods. A neighborhood with too many foreclosures, especially in NYC, leaves that neighborhood with fewer resources because there are not enough taxes generated in that neighborhood.

All the change is a major disruption in the child’s life. This affects their studying and ability to receive a quality education. Their grades may slip, and depending on how far they now live from school, their attendance could suffer as well.

Children Need Stability with Their Peers
Once forced to switch schools, a child can lose their interpersonal skills. They feel damaged and isolated once they leave their friends. Some children need that stability with their peers to cope with moving from their neighborhood and home.

Behavioral Problems are Present
Some children are not sure how to express their emotions to their parents. Children feel lost and may start to act out. They become disruptive in school and their grades suffer. Without a stable educational environment, children may have no access to the proper resources their school could have provided, such as a trusted counselor.

Working with a professional to help prevent foreclosure on your home is the first step to secure your child’s educational future.

After a foreclosure in NYC , you may ponder, “How did I get myself into this situation”. You’ve packed your home and now downsized. You are back to being a renter. However, there is still hope. You can pick up the pieces and get your finances back in order. You can own a home again soon, should you choose. This can be accomplished on your own, or you may need the help of a credit counselor.

1. Bill collectors are calling you
The number one red flag that you may need help is the constant phone calls from bill collectors. You have no time to think of a way out of debt.

2. You’re living paycheck to paycheck
Initially, you could have been on top of paying your mortgage on time. Then, that one emergency struck placing you one month behind on your mortgage. Then, another emergency a few months later follows. Now you are to the point where you are now behind on your mortgage.

If you didn’t reach out to your lender to make a catchup payment arrangement, this could have led to your foreclosures NYC. So now, you are renting and must ensure you are paying your bills on time. Yet, saving money for your next move is equally as important. How do you plan this if you are living paycheck to paycheck?

3. You have tension in your home
Drowning in debt is a major factor to tension in your home. Couples fight, children want to know why they can’t have money to go out with their friends, and bills still pile up. Everyone is stressed. The constant arguing will not be a solution.

Credit counselors are an outside source looking into your financial situation. They can find solutions you may have been blind to. There are many resources available to help you during and after foreclosures NYC. They may refer you to a debt management program.

You can reach out to a HUD approved counseling agency to get you back on track. The U.S. Department of Housing & Urban Development (HUD) is available at (800) 569-4287 or you can visit their website for a listing of approved housing counselors.

You know that foreclosures NYC can damage your financial future. So if you are going through one now, here are a few things you can do to help yourself out.

Rent an Apartment
Before your credit score lowers, if you know you have to move, secure yourself an apartment. After a foreclosures NYC hits your credit report, landlords may be reluctant to rent to you. Secure an apartment, place your security deposit down, and set a move in date for three to six months out, if possible.

Create a Healthy Budget
Various financial burdens cause foreclosures NYC. One being a relaxed budget. So, it’s time to start creating a healthy budget now. Start tracking what you overspent the past few months and adjust that. It’s better to cut out a few things such as coffee or breakfast on the go, than not have a savings account.

Start Reducing Credit Card Debt
If you currently have high credit card debt, it’s time to start paying that down. You want to have a low debt-to-income ratio to ensure you can get a good mortgage rate in the future. It’s easier to work on this now than try to fix it once you have the opportunity to buy a home again.

Get an Emergency Credit Card
Get yourself an emergency credit card. This may come useful once you’ve moved from your foreclosures NYC home. Groceries, utility costs, and moving expenses are hard to cover once you have moved unexpectedly. This can help you from feeling overwhelmed during a stressful time.

If you are thinking of trying to rid yourself of the burden of debt through a short sale you should read this article; trying to do it alone is not a good idea. You should reach out to a short sales specialist, like Premier Real Estate NYC, or a professional real estate agent, preferably one that specializes in short sales in New York City. Here are three important questions you should ask to ensure they know what they are doing and are right for you.

Questions #1: What is your short sales experience?

Make sure to ask this question non-inquisitive, as you don’t want to offend the short sale agent. A short sale in NYC can be very complicated and delicate, and many fail. The two main reasons are because the home never qualified for a short sale, or someone failed to keep the paperwork in check. A seasoned short sales agent should be able to go in depth as to:

• How many sales they have closed
• How successful their bank offers have been
• A realistic timeline of closing
• Will stress to you the importance of getting paperwork in, completed, and on time

Questions #2: What type of information would you need from me?

This is often a good test question if you are not comfortable with the answer they gave you regarding their short sales experience. The bottom line is that they will need everything from you. A financial package should be requested from the lender. Each lender has a different package, so there is not a generic one. This package will include basic information such as bank statements, tax paperwork, paycheck stubs, hardship letters, amongst other things.

Questions #3: How long will this short sale take?

This is another good test. Many new real estate agents are trying to get any deal to close. They will say whatever it takes to land a client. So, if an agent tells you they can strike a deal with your lending institution in under a month, turn away. Short sales take time and there is a lot of paperwork involved. A month is highly unlikely.

For more information and to receive a free consultation, contact Premier Real Estate NYC.

A short sale is an agreement between you and your mortgage lender that you are eligible to sell your home for less than you owe, it doesn’t mean you are 100% free from that balance. You could have a tax liability for it. Premier Real Estate NYC is one of the few real estate companies in New York City that helps homeowners understand their rights in a foreclosure.

Prior to the 2007 Mortgage Forgiveness Debt Relief Act and Debt Cancellation, the balance was normally taxed as ordinary income. This seems to have come just in time for the 2008 housing crisis. However, since this act, your debt could be forgiven. Here are the 6 steps to file your debt cancellation during tax time.

Step 1: By February 2nd, you should receive the Form 1099-C – Cancellation of Debt, from your lender.
Step 2: Download the IRS Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness.
Step 3: Complete the beginning of this form, including your name and tax identification number.
Step 4: Check the box on line 1e: Discharge of qualified principal residence indebtedness.
Step 5: Complete line 2: Total amount of discharged indebtedness excluded from gross income. Here, you will use the information from Box 2 on the 1099-C form.
Step 6: Attach your completed Form 982 to your federal tax return.

There are a few caveats of which you may be responsible for some of that difference from your short sale NYC. Don’t believe you have a pass from filing this on your taxes if you do not receive your Form 1099-C. This may have been submitted to the IRS. So, either report it yourself or contact your lender for the copy. This will help you avoid a tax audit or receiving an automatic tax bill from the IRS.

1. The Second Lender is Not Cooperating
A short sale means the entire balance of the loan is not going to be paid. Losses will be had. Sometimes, a secondary lender may not agree to the terms and it’s a back and forth issue between the two lenders.

2. The Home is Vacant
If the home is vacant, there could be a stipulation that the homeowner needs to live in the property. Then, it’s a matter of waiting for them to move back in. Also, if the home is vacant, it could be vandalized, which means that at closing there could be additional unexpected repairs that need to be taken into account.

3. There May be Lien’s or Judgments Against the Home
A professional realtor should check for any liens or judgments on the home. It’s easy to look at the public records for them. A buyer may walk out on a short sale purchase if there are liens because they can pass on to them and become their responsibility. This could offset the cost of the short sale.

4. Documents Come Up Missing
A short sale NYC package must be completed and approved before a short sale can proceed. If any of those papers come up missing, they must be resent. Through emails, faxing, and postal mail, it’s easy to be misplaced and claimed missing at the last moment.

5. The Realtor is Not On the Ball
Sometimes, the realtor is inexperienced and will not be following up with emails and phone calls to the lender. The paperwork could then be buried. Using an experienced short sale specialist, like Premier Real Estate NYC is a guaranteed way to keep the lender in check.