(post by Dee) A couple of our posts were devoted to a short sale transaction in Maspeth, Queens, NYC. The family, going through a divorce and financial hardship (of their own doing, no doubt), has two school-age kids. The first buyer backed out of the sale angering us and discouraging the sellers, who at that point had already moved out and basically mentally and physically abandoned the house. So here we were, left as care-takers and brokers of the property. Not sure I have ever seen Realtors take out furniture, cut overgrown bushes, and clean the house to make it presentable to buyers, but here we were, just doing that! Then the bank started pressuring the attorney to make the transaction happen or they were going to back out… Thankfully, our clients were perfect candidates for a short sale (other alternatives available – see who qualifies for Hope for Homeowners Act of 2008). We priced the place right, too. You see, with a short sale, you can’t make the price too low or bank will feel played and back out.

What do you know! In a matter of month, we found a buyer. A family that emigrated from China only 6 years ago, had saved up enough for a 20% down payment and closing costs. Great people, easiest to work with, and thrilled to be getting a good deal on a beautiful Tudor house. Their 12-year old son “told the parents” to put money they have been saving to use, and buy in the low market. They listened. This, from their own mouths, dead serious.

The sale went through in July. The owners walked away almost without any damage to their credit, and with a load of debt lifted off their shoulders. Sure it was sad watching them pick up the last pieces and get teary-eyed during the final clean-up, but they had so much more to lose had they stayed and got lis pendis, filed bankruptcy, then foreclosed on anyway. In a way, I think the short sale beats all of these wacky, artificial housing rescue laws signed by President Bush. That’s what happens when real estate market takes a hit. Cost to the bank, a for-profit company that should have never appraised a property worth $550,000 max for $650,000, never mind gave out a second loan to people who barely made ends meet, was $120 grand. A write-off of $120,000. No tax payers had to pony up any cash. And a few hard-working real estate professionals made a few bucks. Selling a property at good value to a family that could actually afford it.

Here is a typical Queens, NY Tudor House