short sales in NY Apts?

Jenny9823: A short sale is simply a transaction in which the proceeds are insufficient to satisfy the outstanding liens. By definition, there will be more of them as more homeowners go underwater.

From a buyer's perspective, there's nothing really special about a short sale, except that the mortgagee(s) may have to approve the price - which can be a real problem, especially with securitized loans.

Wny do you ask? Unless you're in the mortgage lending business, or an underwater homeowner, I'm not sure there's much reason to care.

oh thanks w81.. i knew what one was, but thought it wld be an interesting trend if we begin to see more of them in prime manhattan.. especially since it's another datapoint that shows owners are getting stretched thin as the recession sets in NYC... also, one wld think these banks are more realistic as sellers and may be more open to negotiation?

"also, one wld think these banks are more realistic as sellers and may be more open to negotiation?"

In a short sale, you do not negotiate with the bank. The bank is merely a third party in the background. The only time you actually negotiate with the banks is if they own the unit.

http://www.bondnewyork.com/nyc_apartment_listing_45288.htm?page=details&id=45288

this is the one btw.

no wonder it's a short sale --$1.1+M for 1b/2B is the distressed price?? What did they pay for it? still overpriced.

alpine: "In a short sale, you do not negotiate with the bank. The bank is merely a third party in the background. The only time you actually negotiate with the banks is if they own the unit."

Doesn't the bank have to sign off on a sale that's less than the remaining balance they're owed? Isn't it the alternative to foreclosure/auction for them -- another way for them to take some loss and get the thing off their books?

yes, the bank must consent. However, in some short sales, the bank is not invovled because the seller is the one who makes up the difference between the selling price and the mortgage balance.

Unless I'm missing something, I think that's called a "sale", not a "short sale".

yes the bank has to sign off on the loss and you get a hit on your credit score

I was told by a broker representing a short sale on the UWS that their lawyer said it could take over 6 months to get approval for the sale. I assume this is due to the securitization of the mortgage, which could potentially have many lien holders, all of which would have to approve the sale. Sounds messy.

Eeeew.

sounds like a pain in ass

ncy10025 - "no wonder it's a short sale --$1.1+M for 1b/2B is the distressed price?? What did they pay for it? still overpriced."

i dont know what the person paid and dont know how many square feet... but i assume it's going for around $1k/foot (maybe less). Street easy says previous listings went for average of $1500/foot and last blding comp went for $1270, so looks like its coming at a fair discount.. Also, I used to work by this place and always thought that the grand madison nice - almost bought here actually at one point. hopefully someone hits them. gotta be super stressful.

http://www.nytimes.com/2009/06/07/realestate/07cov.html?pagewanted=3&_r=1&hpw

Looks like the short sale apt is in the midst of being sold. $925k for 1200sq feet. = $770/sq foot.
Down 31.5%

Looks like a great deal.