news of yet another foreclosure halt hit the headlines last week. Does this mean doom and gloom for real estate investors or could it be a fantastic present in disguise?
For those who missed the announcements last week, several mortgage giants have rolled out plans for a 'foreclosure moratorium' for the holidays. So what is it exactly, who will it help and perhaps most importantly, who will it hurt?
Fannie Mae, Freddie Mac, Chase and Wells Fargo all announced 'foreclosure moratoriums' for dates ranging between December 19th and January 2nd. However, what this really amounts to is a halt on actual evictions for those few days, during which these mortgage firms will forge ahead with the paperwork they need to begin the new year with a fresh flourish of evictions and foreclosures. So homeowners must avoid being lulled into a false sense of security which could have disastrous consequences.
Most other lenders including banking giant Bank of America have failed to follow suit, essentially increasing the speed at which they can carry out physical evictions and increasing the odds that their borrowers will be foreclosed on and given the boot in the week between Christmas Day and New Year's Eve.
This is certainly not an enviable position for any home owner to be in, though while it will certainly be sad to see families being thrown into the street many have no one to blame but themselves. Not because they weren't victims of the economy and bad government moves in the last couple of years but because they have chosen not to take positive action to help themselves. Unfortunately those who have failed to seek help will find themselves not only homeless but in many cases still owing on the mortgages on their old homes while those who are reaching out and are taking advantage of short sales are not just debt free but with fat checks in their pockets from lenders for relocation expenses.
While normally a halt in foreclosures may put investors in a bind due to a lack of inventory and deal flow, this current situation actually makes things easier for investors who are ready to move quickly.
Firstly this partial foreclosure halt means that it is easier for real estate investors to hone in on the most motivated sellers. This can be done by acquiring lead lists from a variety of sources including the credit bureaus and data compilers DMA Leads and Info USA.
Secondly it takes all of the work out of having to motivate sellers. It is an easy choice for them. Get kicked out in the street during the holidays and still be in debt up to the eyeballs or get out and possibly walk away with cash in hand to move somewhere else and actually get some nice gifts for those they love. All you have to do as an investor is to match your buyers to these sellers who are desperately in need of help and use flash funding to wrap them up before the end of the year.
Thanks To : radio http://amnuy.wordpress.com/ rssfeed http://thaicode.wordpress.com
ไม่มีความคิดเห็น:
แสดงความคิดเห็น