Following the subprime mortgage crisis in 2008 and the ensuing recession, many homeowners have found it difficult if not impossible to continue making their mortgage payments. In response to these circumstances a growing trend towards Short Sale has been emerging as an alternative to dreaded Foreclosure. In fact, Short Sale deals accounted for about %20 percent of all home sales in New York City in 2012.

What is a Short Sale and how does it work?
To put it simply, a Short Sale means that you sell your home for less than what you still owe to the bank. Although in a short sale scenario you will remain in control of the selling process, a Short Sale can only close when approved by the bank that issued your home loan. While banks have been growing increasingly receptive to Short Sales as they are often less costly than Foreclosures, not all Short Sale requests are approved.

The process of getting a Short Sale approved can be complex. This is especially true when there are third parties involved such as insurance companies and junior lien holders. Furthermore, you will need to prepare many documents for submission to your bank. These can include but are not limited to:
-Statement of income and assets
-Documents indicating the property’s drop in value since you purchased it
-A letter regarding hardship in which you state and explain the reasons why you are unable to meet your mortgage payments

To increase your chances of being approved for a Short Sale, it is crucial that you consult with experts to review your particular case and guide you accordingly. The highly trained professionals at Premier Real Estate NYC will be happy to provide you with this guidance and support, free of charge.