The Pros & Cons of Short Sale in New York City

The Pros & Cons of Short Sale in New York City

How do you know if applying for a Short Sale is right for you?

Well, if you are in the unfortunate position of not being able to afford your monthly mortgage payments and are unable to renegotiate the length and terms of your home loan, then a Short Sale is probably your best move.

To help you make a more informed decision, consider the following Pros and Cons:

Pros:

You will avoid the lengthy, costly and emotionally taxing foreclosure procedure
You will retain control over your situation by working with a realtor to secure the best possible offer on your home

You decrease the chances of bankruptcy.

While your credit score will be adversely affected by a Short Sale, the time you will have to wait to apply for a new mortgage or car loan will be shorter.

Your lender may forgive the deficiency (the amount unpaid) of your loan depending on how much remains outstanding and your financial circumstances.

Cons:

A Short Sale will still show up on your credit score and there will generally be a waiting period before you are able to apply for a new mortgage.

The Short Sale process can take a long time to be finalized even though New York City banks are now required to respond to your application within 60 days.

You will need to expend much time and effort to put together your Short Sale application package for your lender (s), find a realtor and attract a suitable buyer.

There is no guarantee your Short Sale will be approved.

If you’re convinced that a Short Sale will help you make the best of a bad situation, the experts at PREMIER REAL ESTATE NEW YORK CITY will advise you on how to maximize your chances of success. If necessary, we will also help you explore alternative options.