The NY1 story has left out a major piece of information. The seller is held liable to pay taxes on the loss the banks accepts on the short sale. The seller is given a 1099 for the dollar amount of the bank loss which can result in a very big tax payment owed to the government. Who is worse to owe money to, the Gov't? or a bank? You are better off foreclosing, your credit report still shows you did not pay back in full the lender and will have adverse affect on your credit.

Posted by: commonsense at April 13, 2009 9:27 AM in response to Monday Links

These numbers can not be accurate. I review closed sales on a daily basis and see foreclosures in every neighborhood. Something is not registering properly.

Posted by: commonsense at March 10, 2009 1:58 PM in response to Brooklyn Foreclosures Low and Steady in February

Sam, when the recession runs it's course we will be dealing with run away inflation which will limit growth on the upside. I am a realist and suggest everyone to expect a 10-15% decline in home values before we flatten out as a market. That flat market will result in a 10 year drag until the next bull real estate market.

Posted by: commonsense at January 26, 2009 11:48 AM in response to Parts of Cobble Hill and Carroll Gardens Vulnerable

Having spoke with someone I know who is a straight forward individual in the mortgage business stated the lenders are willing to lend up to 45% of ones debt to income ratio. My previous post was debt to income ratio was specific (but not noted) to what a mortgage payment debt to income ratio should be. My understanding is the lenders are at 28-36% for mortgage debt(principal & taxes) to income and a total of 45% for ones entire debt to income ratio to be eligible for a mortgage.

Posted by: commonsense at January 2, 2009 2:29 PM in response to Optimistic Prediction for the New Year

Banks can not be forced to lend to unqualified borrowers. That is what got us into this mess. The lender's requirements are going back to 2002 and back which required an applicant to have 20% down payment, a job which can be verified with proof of income, a good credit score above 680, 6-12 months reserves in a bank account(somewhat new requirement, do to declining market conditions)and not overwhelmed with debt which will require the applicant debt to income ratio to be 20-25%. Pretty tough requirements for many people in today's environment.

Posted by: commonsense at January 2, 2009 11:59 AM in response to Optimistic Prediction for the New Year

Expect further weakness of 10-20% downward pressure on real estate values in the brownstone brooklyn vicinity.

Posted by: commonsense at December 31, 2008 10:41 AM in response to 2009 Predictions and Resolutions?

Sweet Place. The location is a serious issue with a school and a board up on each side. I would pay 1.75, paying a premium for the garage.

Posted by: commonsense at December 29, 2008 1:42 PM in response to House of the Day: 433 Waverly Avenue

It seems many people are living in a Downtown Brooklyn bubble life. If you believe that falling prices and a high foreclosures outside of your Downtown Brooklyn bubble life will not eventually affect your property value then you really have no understand of economics and lack commonsense. Almost every zip code in Brooklyn has been labeled as a "declining market" in the lenders calculations. Which means they will subtract like a previous poster noted a 5-10% cushion lower on any potential loan.

Posted by: commonsense at December 3, 2008 10:44 AM in response to Refi Wave on the Way?

I am not sure how many home owners have 20% equity remaining in order to satisfy the banks requirement of a 80% loan to value. My educated guess as someone who is in the business for 2 decades would bet that the owners in most need to refi are leveraged to the max and possibly under water.

Posted by: commonsense at December 3, 2008 9:23 AM in response to Refi Wave on the Way?

Very well done modernization. If done right as this home was you have a beautiful turn of the century home that is worthy of its design and architecture.

Posted by: commonsense at November 25, 2008 11:00 AM in response to Brooklyn Modern #2: Gut Renovated in Boerum Hill

Back in the late 1800's the area now known as Crown Heights was actually a crow sanctuary and it's terrain was on a hill compared to the south and north of the area. That is how the name Crow Hill originated.

Posted by: commonsense at November 18, 2008 11:56 AM in response to Tonight: Crow Hill Reaching for Landmark Status