When it comes to purchasing a foreclosed property, there are significant positives and possible major negatives. Foreclosures in NYC can come at a great deal, often much better than non-foreclosure prices on the market. For that reason, New York City foreclosures are very popular. Before trying to snap up that foreclosure, assess the damage inside of the building to tell if it will just take a cosmetic fix or it will require a lot more construction to repair.

Cosmetic Damages

Though cosmetic damage can often be a turn off to buyers, a good eye can spot a great deal with those looking for a great investment. Cosmetic damages can range from the home needed spackling due to holes in the wall, paint chipping off the home, and even broken granite and trashed counters. As a wide rule of thumb, issues that do not involve the ceiling, walls, and floors might be cosmetic. These damages can add up, but if you can catch a foreclosed property with only cosmetic damage, you may get a great deal in the city. One way to research the foreclosed market is to contact a reputable real estate company. A company, like Premier Real Estate NYC is a type of real estate company that works with you from A-Z.

Major Damage

Major damage will include cracks in the walls and floors, leaking ceilings, and ruined plumbing. Also, be careful of an old foreclosure or a short sale in NYC, Brooklyn foreclosures, which have traces of lead paint or asbestos insulation. Structural and plumbing damage can mean tens of thousands in repair costs. Have your property in question checked by a qualified home inspector to determine if you have found a gem or a dud on the market. You always need to do your due diligence when looking at short sales in Brooklyn, or foreclosures in NYC.

If you’re looking to get into the game of flipping homes, sure distressed homes are a good option. Distressed homes are sometimes sold for pennies on the dollar. The right neighborhood and selling price of the home could land you a lucrative rental property, or home to flip and sell. At the same time, with a company like Premier Real Estate NYC, you will be giving a New York resident a way out of the awful process of foreclosure.

What is a Distressed Property?

First, let’s examine what a distressed home really is. It is a home that is receiving regular calls and written notices from the lending institution that is looking to regain its asset, which is your home. However, because of the homeowner’s poor financial state, the home’s value may have decreased. They may have let the property go unkempt, or it may have been vandalized. The owner could have stripped the home of its appliances and materials themselves.

What Can You Do With a Distressed Property?

If you’ve landed a distressed property in a great neighborhood, it’s like finding a gem. You just shine it up and pass it along. Some investors who purchase foreclosures in Brooklyn, for example, choose to live in these properties and fix them up themselves. This is a great idea for a beginner investor. You can keep an eye on the property while making the improvements. Leasing is another great idea for a distressed property. You may even find someone that is great with updating homes and you two can work out a deal. Once the home is livable, they can move in and make the rest of the updates. Then you can continue to lease the home to them.

However, after performing the necessary repairs and minor upgrades, most investors sell the home. This can generate you a lucrative profit. You can invest those funds into another project right away. Remember, your goal with distressed properties is to make money. So be sure you work with a real estate agent that specializes in foreclosed homes. They not only can help you find them, but will also find out any unpaid taxes, mortgages, or other judgments against the home so you are not left with surprises. On top of this, you will be giving the previous owner a fair way out of financial crisis.

Sometimes you’ll find a few distressed properties you feel are a great deal, especially in the short sale market in Brooklyn. After the housing crisis of 2008, many New York residents are looking for housing outside of areas in Queens, Staten Island and even Brooklyn.

However, before jumping and bidding on them all, you do need to consider a few things. You don’t want to take too long to do your due diligence and bid as other investors will quickly jump on the deal. Instead, to get ahead on the Brooklyn Short Sale market you want to be sure you understand the foreclosure procedure in New York City. A company such as Premier Real Estate will make certain that you overlook some of the concerns of foreclosure in places like Brooklyn or Queens. Well known real estate companies that specialize in the short sale market in Brooklyn and surrounding areas in New York City will help you complete help you do your homework on a home in foreclosure.

Take Repair Costs into Consideration

In addition to the asking price of a specific foreclosure in New York City, there are other pricing factors to consider before making an offer. Hiring a home contractor is necessary so they can estimate the necessary repairs to get the home up to code. Things that may need to be performed include:

• Rewiring
• Installing new plumbing fixtures and pipes
• Replacing drywall
• Replacing the roof

These types of repair costs can be expensive. If you are not prepared to make them after spending all your expendable income for the home, you’re left with a big mess. You also want to verify this contractor does good work and guarantees it.

How to Bid on a Distressed Property in Brooklyn

Banks often will place their distressed property up for auction. You may also go directly through a local real estate company in Brooklyn or Manhattan. You do want to offer lower than the asking price because they bank needs you more than they make it appear. Having an experienced agent that specializes in Brooklyn short sales will make the negotiation process go smoother.

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Since the 2008 housing crisis, families everywhere have been devastated due to foreclosures. Families in New York City were hit twice as hard between the 2008 housing crisis and Hurricane Sandy – between these two catastrophes; homeowners in New York City have been living in despair for quiet some time now.

Many people have become depressed, and feel they have no hope for the future. Lives change from a foreclosure, and there seems to be no way out. If you are facing foreclosure in NYC, do something about it before it’s too late. Seek counseling for yourself and your family. Premier Real Estate NYC is offering free consultations for homeowners in New York City, and Long Island.

Counseling for Couples

Couples are hit the hardest through a foreclosure. Each may blame the other for getting behind in the mortgage and other bills. Poor financial decisions are the number one reason for divorce in America. Working with a counselor can help you both find ways to stop the blame and work towards building a promising and responsible future.

Children May Not Understand

Your children are affected by foreclosures and moving forcibly from your home. The only thing they are concerned with is staying in their school and neighborhood with their friends. Changing schools and meeting new people is an adjustment, so counselors can be the one they communicate their anger to.

How to Deal With Family and Friends

You may feel embarrassed about your situation. How do you tell your family and friends you fell behind so bad in your mortgage that you now must move. It’s hard enough for your own family to accept. You don’t need judgment and ridicule from outside family members. Counselors can help you deal with the pressures of explaining your situation and the negativity you’ll receive from outsiders.

Once you receive your free consultation from Premier Real Estate NYC, what should your next move be? Well, your realtor, in this case Premier Real Estate NYC, will tell you that you must ensure your home is presentable, making it seem move-in ready for buyers.

Living in your home for so long, you may have grown accustomed to its flaws. It is normal wear and tear on a home; however, buyers will look at it in another light. Here are 5 inexpensive ideas to make your home interior shine to better your chances to sell your home in a short sale.

Clean Your Light Fixtures

Have you ever just looked up at your light fixtures, especially the globe lights? How do bugs get in there you wonder? Well, turn the light off and once it’s cooled down, grab a ladder and carefully take the globe down. Dust the bulbs or replace with energy efficient bulbs, if you have them. Clean the light fixture cover with hot water, let it air dry, then replace.

Clean Heating Vents and Registers

Grab your vacuum hose and brush and start cleaning the vent and register areas. If the dirt and dust is bad, grab a bowl of hot soapy water and a cleaning brush to clean it thoroughly. You can remove the covers and give a deep cleaning if necessary. You might think this information is not valuable, but for a homeowner in hardship, anything and everything helps.

Change Switch and Electrical Socket Plates

Most plates can be removed and cleaned in hot soapy water. For those plates that are not, you can grab new ones at the dollar store. Decorative plates can add a touch of décor to your short sale NYC home.

Clean Up the Stove

Clean the inside and outside of your stove. Allow oven cleaner to sit for a few hours and then clean. If the drip pans are grungy, you can replace them for about $3 each from your local hardware store.

Make Your Hardware Sparkle

Door knobs, door hinges, and cabinet hardware can sparkle again with brass or glass cleaner. Touch up around your entire home.

A foreclosure in any city, especially in New York City, feels almost as if you are being pushed from your home. In your new home, it will take time adjusting, and you may not be in the mood to decorate. However, the best thing to keep your spirits up after a foreclosure, and start your new life, is to unpack and give your new home the best look you can. Each of the following tips are renter friendly.

Change the Lightening Scheme for Each Room
To help save on electricity costs, place low wattage light bulbs in each room. The lower the watt, the more restful the room will be.

Add Flowers
The right flowers can make a room feel alive or romantic. You can purchase faux flowers if you don’t have much of a green thumb. Otherwise, you can add green foliage around the home, such as palm leaf plants. The windowsill or the corner of your counter makes a great place for a small herb garden and can save you a few dollars.

Purchase Remnants
To give old furniture a new look, you can purchase remnants to cover your pillows, make a decorative tablecloth, or add décor to your draperies. Remnant carpeting is also available and can help spruce up a room.

Create Creative Storage Space
You may have had to downsize after your foreclosure. So make the most of your space. Instead of a regular end table, place small bookshelves together and store items in there.

Make a Work Of Art
If you no longer have an area to keep your buffet, consider hanging a few plates on the wall with wire plate hangers. Soon, you’ll have a place for them again. Create an illusion of more space by hanging mirrors in various rooms. If you have vases, gather up a collection by the fireplace or corner of a room for a dramatic effect.

Add a Splash of Color to the Wall
As a renter, you aren’t always able to paint. So, grab some painters tape and make shapes on the wall such as squares, rectangles, or even long vertical or horizontal lines.
Believe it or not, a good real estate company can help you and your family in a number of ways when it comes to avoiding a foreclosure or dealing with a short sale. Contact Premier Real Estate NYC today for a free consultation and see what rights you have as homeowner in New York City.

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.

Going through a foreclosure in NYC, or even a short sale places a tremendous amount of financial pressure on homeowners. You may have to find a new home, change your child’s school, place items in storage, or have a longer commute to work.

One way to find a bit of financial relief is holding a garage or foreclosure sale. This is a way to put money in your pockets, especially if you prepare ahead of time.

Sell Your Items to Save for a Rainy Day
The internet makes it easy to sell your valuable items across the United States. Sites such as eBay and Craigslist allow you to take pictures of your items and buyers can bid on them. Save the money you have made and keep it for a rainy day.

Eliminate Excess Storage Fees
The more items you place in storage, the more space you will need. You can incur a high monthly storage facility fee. You can decrease or eliminate your need for storage fees by selling your larger items.

Have Money to Help You Move
Once it’s time for you to move, the money from your short sale moving sale can help you with moving costs or utility connections. Everything will be moving so fast, you otherwise may not have had time to save your money to do so.

Premier Real Estate NYC helps homeowners prepare for foreclosure, contact us today for a free consultation.

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.

Once the 2008 housing crisis hit, there were so many pets left behind to defend for themselves. It’s hard for families to leave their pets behind, yet they may have had no choice. Families were struggling with finances, feeding, clothing, and housing their families. An additional mouth, their pet, adds on to the stress. Many homeowners in foreclosure look towards a company like Premier Real Estate NYC to assist them with all of their troubles during a foreclosure.

Also, renting is an issue. Many landlords want a pet deposit and monthly pet rent of $25 and upwards. So, is bringing your pet an option for you after you find yourself in a foreclosure in New York City?

It depends if you do have a close connection with your pet. If it’s just yourself and you can find a friend or family to keep your pet until you are stable, do so. It’s more difficult if you have children though. Moving from your home after a foreclosure in NYC is stressful and confusing for children. They may find more comfort in having their pet with them.

If you find a pet friendly home, try asking to sign a longer lease with the landlord as a bargaining chip for a lower monthly pet fee. You also could offer a higher pet security deposit, which is refunded when you move out. You can also ask a company like Premier Real Estate NYC to offer you a free consultation.

If there are no other options, try finding your pet a suitable home or take them to an animal shelter in hopes of an adopting family falling in love with your pet.