First…What is a short sale?
Thomas Siriannis’ definition is… “a short sale is when a home is worth less than what is owed to the bank and the bank accepting less than what is owed to clear up the debt”.
With a lot of homeowners upside down in their mortgage more and more homeowners find themselves short selling their house says Thomas A Sirianni, Esq of New York
In reality, the mortgage bank has no real choice and a short sale for the bank has huge benefits. Because ultimately the bank ends up getting what they would have gotten after years of foreclosure, says Thomas A. Sirianni, Esq,. I’d much rather have recouped some of my money now versus years from now, if I was the bank. So short sales for the bank work perfectly.
But what about the home owner? Is a short sale best for them?
Thomas A. Sirianni’s, Esq position is that “in most cases short sales are a horrible financial move”. Here is why….
New York being a judicial foreclosure state it would take a bank years to foreclose. Then about another 4-8 months to evict. So let’s say, on the low end, with everything it will take a bank 3 years to foreclose and evict in NY. That’s 36 months….in most cases alot more says Thomas A. Sirianni, Esq.
Given a rent payment of $3000 per month ..that’s over $100,000 in rent savings if the homeowner stays in their home! That far exceeds a $5000 “relocation” fee you may get from the bank in a short sale. Even paying a $10,000 legal fee to help defend and monitor the foreclosure, you will come out way ahead of the game financially, says Thomas A. Sirianni Esq.
So in the opinion of Thomas A Sirianni, Esq, banks and real estate brokers make out in a short sale but homeowner/sellers could stand to lose if they chose that route. Especially in the begining of the foreclosure process.
Thomas A. Sirianni, Esq is available for free consultations. Call his cell phone directly at 516-314-1343