No cash flow, no credit. no house sales

These days, there are so many challenges facing struggling home owners desperate to sell a house in Long Island. Home owners are not able to make payments and, at the same time, they know full well that they if they were to put their house on the market it would likely sit there gathering dust. In fact, if you type the phrase “foreclosed homes ny” into the Google search bar you will – in less than one quarter of a second – be provided with over 1,700,000 hits.

One of the biggest problems currently facing home owners desperate to sell a home in Suffolk County or in Nassau County, New York, is the fact that there are very few folks out there looking to buy. The prevailing reason folks are hesitant to buy homes right now is, clearly, the fact that price erosion is still occurring.

Price erosion is not the only culprit…

Nevertheless, there are still young, growing families out there. And, ostensibly, a growing family eventually needs to move out of the apartment and into a home. So, why is it that house sales are so slow?

The other obvious reason is the inability of individuals to have access to credit. Although large companies continue to be able to borrow cash at extremely low rates, banks are shying away from granting lines of credit to individuals and small businesses; and when (or if) they do, they are likely to do so only with outlandish accompanying interest rates.

Those who would, in different times, potentially be in the market to buy a home ny are not able or willing to do so now. Even though the emergence of such buyers could help to drive home sales, the banks have not been making it easy for said home buyers to step up to the plate.

A real Catch 22

Data from several major cities in the U.S. revealed that, in those cities, the average down payment required by the banks in the purchase of a home rose to 22 percent. With the unemployment numbers as they are, and the overall diminishment of the Middle Class due to the loss of manufacturing and outsourcing, there are simply very few folks out there who can manage such a down payment.

As a result, potential buyers are not able to buy; potential sellers are not able to sell; and the market stagnates and properties fall into disrepair, or worse. Home owners who are not able to sell are left with such an incredible burden in not being able to make their mortgage payments, but – at the same time –knowing they will not be able to sell.

This is a big part of the reason that you get almost two million hits if you type “foreclosed homes ny” into the Google search bar.

Home owners who cannot afford to make their mortgage payments and also cannot sell their home become veritable economy ghosts. That is to say, that they are not able to be true consumers of the products and services and deliverables that are most critical in the driving of the Gross Domestic Product.

Are there any solutions?

Yes, especially for those who are feeling increasingly desperate to sell a house in Long Island. There are always short sale solutions, and some real estate investment experts can provide programs with which home owners can receive cash-in-hand for qualifying homes.