By Joseph Palumbo III
A hot Queens real estate topic now is the short sale. The term has crept into the vocabulary of many hopeful Queens homeowners because purchasing a home — even a large or luxurious one — can again be a reality.
A short sale occurs when a bank allows a property sale even if the new purchase amount is not enough to satisfy the existing mortgage. Short sales have become common nowadays because banks would rather not take on a foreclosure, so a short sale circumvents that from happening. Banks are also becoming more willing to accept short sale terms to cut and mitigate their losses — especially in the current real estate meltdown.
Buying a short sale can give you an opportunity to buy discounted real estate. Also, unlike foreclosure auctions, during the short sale process you will have time to inspect the property and its title and get repair estimates and anything else you think needs to be investigated before buying. The same cannot be said about purchasing a foreclosure, which often is a neglected property in need of improvement.
So How's Business regarding purchasing a short sale property? The main reason is the massive savings that may occur. These savings will continue to occur because banks have realized that they must entice future buyers to purchase property, as opposed to acquiring foreclosures that have accumulated expenses. Banks are not in the real estate business. Short sales can be a terrific property purchase.
Reach Joe Palumbo at 516-248-0256 or [email protected].