Home Buying in Jericho>Question Details

CRB61911, Home Buyer in Port Washington, NY

Foreclosures in Jericho, NY

Asked by CRB61911, Port Washington, NY Tue Feb 26, 2013

Why are there so many foreclosures and pre-foreclosures in Jericho, NY? In particular, there are a lot just south of the NSP just east of Bethpage Road and west of the train tracks. I'm attracted to some of the homes there because of the current prices (both foreclosures and non-foreclosures), but am concerned about the long-term value of the house.

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If wouldn't be too concerned if I were you. The homeowner who lives there and purchased for a high dollar amount should be concerned, but a new buyer shouldn't.

Why do you have pre-foreclosures there? These sellers either purchased their homes when the market was hot and prices were high, as a result they now have a mortgage balance that exceeds today's market value. Maybe they purchased many years before the market got hot and refinanced to cash-out on their equity, also resulting in a higherortgage balance. This is so thing that's not just happening in this area, but rather everywhere. Sure, you'll see more in certain markets than in others, depending on a variety of factors.

The scenarios I mentioned also lead to the foreclosure inventory. Things like unemployment and other hardships that people experience can also lead to foreclosures. These things do t really have a direct link to one living in Jericho or any other towns. These things happen and may continue to happen,

With short-sale transactions, the lender currently servicing the sellers mortgage will go through their own process of determining today's value of that particular property, evaluate and determine just how much of an offer they'd be willing to accept. This number is usually within 85% of fair market value. Again, there are several variables that come into play when they determine this number.

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
4 votes Thank Flag Link Tue Feb 26, 2013
If referring to RealtyTrac ads, keep in mind that RealtyTrac's information may not always be accurate and oftentimes can be misleading--you could be looking at a lis pendens property--notice of default--some of those properties may not be for sale yet, and some may never be, if the default is satisfied by the owner. If you are interested in foreclosures, work with an agent, as most do end up being listed by a broker--he/she will have access to reliable information--also don't overlook traditional sales as some may turn out to be a much better bargain than some of the foreclosure properties. According to MLS, currently there is one bank owned property in Jericho listed at $799,000. For available area properties check http://www.mlsli.com
2 votes Thank Flag Link Tue Feb 26, 2013
As an attorney who defends foreclosures, I can tell you that there are a lot of foreclosures in most towns these days. It is unfortunate but it is reality. The only thing that need concern you regarding the foreclosed property is the level of impact it has on the home buying process. Buying a short sale tends to take a significantly longer period of time than a regular sale. If you have the funding at your disposal, foreclosures or short sales can bring a significant amount of value. If you have further questions, give me a call at (516) 777-0146. Otherwise, good luck!

John A. Weber IV, Associate Broker
Bayview Estates Realty
(516) 777-0146
1 vote Thank Flag Link Fri Jul 19, 2013
Good afternoon CRB1911,

I've been helping First Time Buyers for 23 years as a mortgage professional and I will tell you what I have always told my clients here in New York: If you are a First Time Buyer, steer clear of foreclosures and short sales.

Foreclosures are someone else's headache. The home probably has not been well-maintained and you're a First Time Buyer adjusting to paying a mortgage. Do you really want to walk in the door to someone else's deferred maintenance that YOU will have to pay for? Also, if you're thinking there are deals to be had in terms of lower prices, mostly those "deals" go to professional investors who can pay cash, negotiate hard with a Lender, and close fast.

For Short Sales, my attitude of late is that First Time Buyers should steer clear. Short Sales tend to be a better deal for the homeowner than for the Buyer. You'll wait MONTHS for the homeowner's Lender to approve the short sale; maybe as long as Six or Seven Months. Meanwhile, you're stuck in a contract to buy that home. I closed a short sale recently with a Buyer who, after seven months said this at the closing table, "I don't even want this house anymore."

And he didn't even get the "deal" on price he thought he was getting! The house appraised for only slightly more than he paid for it at the short sale price. He walked into this deal thinking he was buying a home for $100,000 less than it's value. In the end that wasn't the case.

There are plenty of motivated Sellers with their homes listed on your local MLS. Go find a good Local Mortgage Banker, get prequalified, then find a great, experienced Realtor, and buy the home you want at the price you're willing to pay.

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
1010 Northern Blvd. Suite 234
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
NMLS#3528

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1 vote Thank Flag Link Thu Apr 25, 2013
Realty Trac Strikes Again ;-)
0 votes Thank Flag Link Fri Apr 19, 2013
Hi CRB1911, there are currently 26 homes listed for sale in Jericho, one foreclosure and no short sales. Last year (2012) there were 95 homes sales that closed in Jericho, two were short sales and one was a foreclosure. All signs indicate a strong market in Jericho, there is roughly four months of inventory and very little distressed activity. Pre-foreclosure is a very over used term; anyone who misses a mortgage payment can be deemed in pre-foreclosure. If you are thinking of investing speak to a realtor and get more information. No-one can tell you with any degree of certainty if homes in Jericho will rise or fall in value over the long term, the best we can do is gauge the strength of the current market as a guide to the short term future. Your best buys aren't always foreclosures and short sales, there are other properties out there that can be better values. Please e-mail me if you would like more information or have more questions.
Thank you
Tom Brady SFR, e-PRO, SRES, GREEN, BPOR
Licensed Real Estate Salesperson
Notary Public, Retired N.Y.P.D. Lt.
631-682-8660
Tom@BradyFamilyRealty.com
http://www.BradyFamilyRealty.com
#1 Listing & Selling Brokerage in NY
Charles Rutenberg Realty, Inc.
255 Executive Drive - Suite 104
Plainview, New York 11803
0 votes Thank Flag Link Tue Feb 26, 2013
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