Why Suffolk County NY Foreclosures Don't Sell

Suffolk County NY foreclosures can take a long time to sell, and depress other property values in the meantime. Ever wonder why that house on your street is just sitting there and making the neighborhood look run down?

It's not hard to spot these un-cared for homes with the peeling paint, overgrown lawns, and bushes that look like they haven't been trimmed in years. Chances are, they haven't been.

Some Suffolk County NY foreclosures are taking nine to fifteen months to sell. Rules and regulations can be tough, depending on the state. Fannie Mae deals, for example, adhere to strict guidelines. Once the price is set, it can't be reduced in the first 30 days, but few buyers are willing to pay full asking price for distressed homes. After a month, the price is lowered incrementally by 5% or 10%. Because Fannie Mae and Freddie Mac focus on the bottom line ? and not how a property looks ? this leaves little room for negotiation.

Banks are slammed by high foreclosure volume and the additional scrutiny resulting from improper foreclosures of the past. Some have wondered if banks are concerned about flooding the market with foreclosures, and it now seems that banks are more comfortable foreclosing again.

How much time does it take to settle a typical foreclosure? Try 370 days ? and then add another 180 days before it's actually sold. That's more than a year and a half to get a run-down property into the hands of a responsible homeowner. This doesn't even take into account the delays that can be added if there is a tenant in the property. To gain perspective on how bad things are, the average foreclosure in 2007 took just 150 days to close.

The good news is we should see home sales speed up in the near future. In the first quarter of 2012, a 25% increase in pre-foreclosure sales signaled the tide is turning for how banks deal with distressed homes. Banks are becoming more open to pre-foreclosures because they minimize losses. With pre-foreclosure sales, a property is sold by short sale or auction before the foreclosure process is complete. In the first quarter, the average price of a pre-foreclosure home was $27,000 higher than a foreclosure sale.

What Can Be Done About Suffolk County NY Foreclosures On Your Street?

In the meantime, if there is a foreclosure on your street, or a home that looks like it might fit this category, you don't have to let it necessarily bring down values in your neighborhood. Talk to your neighbors about taking turns mowing the overgrown yards, and maybe even getting together to trim the shrubbery. Granted, no one likes working for free, especially on someone else's home, or one owned by a bank, but doing so could help your home's value in the long run.

If you have questions or concerns about Suffolk County NY foreclosures, and how they might affect your neighborhood, talk to us. We have other tips and advice we can give you to help prevent a foreclosure in your neighborhood from bringing down the value of your home.

Source: http://www.suffolkrealestate4buyers.com/why-suffolk-county-ny-foreclosures-dont-sell

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