The test that decides short sale or cash sale
People are told conflicting things about short sales by several parties who each have something to sell. Here is the version with nothing attached.
Equity means a cash sale. Being underwater means a short sale. That is the whole test, and it does not turn on your preference or on how good a negotiator you are. A cash sale runs on your timetable, because the money is already there. A short sale runs on the servicer's, because the servicer has to approve taking a loss before anything can close.
What a short sale actually involves
A short sale needs three things: a hardship documented well enough for the servicer to act on, a buyer credible enough that the file does not collapse partway, and patience. Short sale approval is measured in months rather than weeks, and it moves at the servicer's pace.
What a short sale is not is fast, and it is not something a buyer can force. What a buyer can do is arrive with a clean contract, answer every request the same day, and stay in it when the file goes quiet for three weeks. That is most of what separates a short sale that closes from one that stalls out.
Why local knowledge changes the number
A three-bedroom on Stuyvesant Avenue. A three-bedroom on George Drive. A three-bedroom on Clinton Avenue. All of them in Mastic, all bought by us.
Mastic is roughly 15,404 people in Suffolk County, ZIP 11950, and the housing stock is mostly ranch, cape cod, bungalow. Around Montauk Highway and Mastic Road, most of it is old enough that the mechanicals are on their second or third life. We have bought enough here to know which streets take water, which blocks still have oil tanks in the ground, and what the William Floyd Union Free School District does to a resale price.
Helping Mastic owners through a short sale
If you have equity, we are the simple route: a written cash sale number, a closing date you choose, no repairs, and no financing to fall through.
If you are underwater, a short sale is the route and we can work it with you. We know what a Suffolk County servicer wants in the package, roughly how long short sale approval takes, and where these files usually stall. We also bring in the attorneys and HUD-approved housing counselors we have used for years when a situation needs them, and we do that whether or not the house ends up being ours.
How long a short sale takes against a cash sale
The median house in Mastic sold for $540,000 and took about 27 days to go under contract, then another 45 to 60 days waiting on the buyer's mortgage. That is 72 to 87 days in total, for a house that was ready to show on day one. A cash sale skips both of those waits, because there is no lender to satisfy on the buyer's side. A short sale adds a wait of its own at the front, which is the servicer's review.
That ordering matters when a foreclosure sale date already exists. A cash sale can often be closed inside the window. A short sale usually needs the window extended, and servicers have discretion to adjourn when a credible contract is in front of them. Nobody can guarantee they will.
How selling a house in a short sale in Mastic works
- 1
You give us the address
The street address in 11950 and a sentence or two about the condition, by phone or the form. No photos needed, and nothing has to be cleaned or repaired first.
- 2
We come and look at it
One visit, one person, usually under half an hour. On a ranch or cape cod of the age most of Mastic was built, we are mainly looking at the roof, the boiler and the electric rather than the kitchen.
- 3
A written offer within 24 hours
One figure, in writing, inside 24 hours. Not a range. Show it to a Suffolk County agent if you want a second view; if the house is already in good enough shape to list, an agent may get you more, and we will say so.
- 4
You pick the closing date
Fast if you need fast, or months out if you are waiting on probate, a tenant, or somewhere to move to. Either way you skip the 72 to 87 days a listed Mastic house spends finding a buyer and then waiting on that buyer's mortgage.
After the closing on a Mastic short sale: what to ask about
The paperwork at the end of a short sale is where the real terms live. The approval letter says what the servicer will accept and, crucially, what it reserves the right to do about the rest.
Have an attorney read it. That single step is the most valuable thing most short sale sellers do, and it costs a fraction of what getting it wrong costs. We are glad to tell you what we typically see in these letters, but what applies to you is a legal question and belongs with your attorney. The tax treatment belongs with a CPA for the same reason.
What you do not pay when you sell a house in a short sale
Each of the following comes with a retail listing of a house in a short sale, and none of it comes with ours.
- Agent commission
- $27,000 at 5% of the Mastic median none
- Seller closing costs
- About $10,800 on a $540,000 sale. We can cover these. none
- Repairs to make it listable
- The work it needs to show well, out of your pocket first none
- Cleanout and removal
- Paid per load, before a single buyer walks through none
- Carrying costs while it waits
- Taxes, insurance and utilities through the 72 to 87 days a listing takes to sell and close none
Start with the written payoff figure
The worst outcome here is spending two months on the wrong route, and that happens when people guess at the payoff instead of asking for it in writing.
One call to the servicer settles half of it. One visit from us settles the other half. From there the choice between a short sale and a cash sale usually makes itself, and we will be straight with you about which one your Mastic house is in.
Common questions
Do you handle short sales in Mastic?
We do. A short sale is a different animal from an ordinary purchase, and we have taken plenty of them through to closing in Suffolk County. Tell us the payoff figure and where the file stands and we will tell you what we think.
How do I find out what I owe on the mortgage?
Ask the servicer for a written payoff statement. It is your right to have one and it takes a phone call. That figure, set against what the house is worth, is what decides between a short sale and a cash sale.
Can I do a short sale on a Mastic house if foreclosure has already been filed?
A short sale and a foreclosure frequently run at the same time, and the short sale has to outpace the calendar. It can be done and we have been through it. Tell us where the Mastic case stands, and speak to an attorney the same week.
Which is better for me, a short sale or a cash sale?
Whichever one your numbers permit. A cash sale is better in almost every respect except that it requires equity. If you are underwater, a short sale is not a worse choice, it is the available route, and it can still beat letting a foreclosure run its course.
Will I walk away with money from a short sale?
A short sale is about clearing the debt rather than producing proceeds. If there is equity, you are not in a short sale at all, which is the first thing worth checking. Get the written payoff before you assume it either way.