The vibrant and diversified Brooklyn Real Estate Market is not a recession proof market. Experts and everyday people agree that the poor condition of the economy has had a dramatic effect on the housing market. The Brooklyn Real Estate Market has experienced a downturn in property values for some time now as well as in other US cities. Some homeowners who can no longer meet their monthly mortgage payments for an extended period of time because of hardship, i.e. due to job losses or reduced income, medical emergency, etc. face the possibility of their property going into foreclosure, where the bank takes back the property to be sold. However there are alternatives to foreclosure proceedings. One of these alternatives is called a Short Sale. A short sale allows the property to be sold for less than the outstanding mortgage amount owed to the bank (as well as default interest and penalties, etc) and hence the term short sale. By agreeing to a short sale the lender can save a substantial amount of money instead of carrying the expenses of the home from the time of default through the date of repossession. Each bank has its own guidelines but the basic procedure varies very little from bank to bank. The seller will have to prepare a short sale package for submission to the bank. After the seller accepts the offer from a buyer, the real estate listing agent will send the offer to the lender as well as other necessary documents such as a list of comparable sales prepared by the real estate broker. The short sale process might be very lengthy and if the short sale package is incomplete, the short sale process will be delayed. It is imperative for the seller to work with an experienced real estate broker who will guide the seller through the short sale process. Please keep in mind that not all lenders will agree to a short sale.
