Investor · bronx, NY · Member since 2008 · 265 posts · 42 votes
New Foreclosure National Moratorium - How does it affect short sales investors whom flip them.
I am just getting started going after short sales to flip them to other investors, so am I too late here and missed the boat again hopefully not...:)
What I am confused about is this national moratorium only for those properties that have been foreclosed all ready and sold via REO Brokers that are going to be stopped from selling them as Reo properties.
Or does this also refer to any pre foreclosure properties that are on the brink of being foreclosed, not sure if this is true or not and if it is true that they are not going to foreclose on anybody for a while till this messed is cleared up
Bottom line can i and other short sale investors still continue to proceed here going after pre foreclosure deals or should we stop and start going after motivated seller types of leads.
Where can i go to read up on this at some authority real estate site to understand what does all this mean to me and other investors.
I don't see how this moratorium wouldn't be the BIGGEST BOON TO SHORT SALE FLIP investors ever. Think about it. How else are banks going to unload properties if they can't foreclose? Hello? Short sales!
I am sure this is getting plenty of real estate investors dealing with short sales pretty nervous, including me since I am just getting started and spent in the 1000's for training..hummm
Can we benefit from this foreclosure moratorium in any kind of way within the short sales, reos, bulk reos, foreclosure auctions, there could be an opportunity for those of us that look for one when everyone else is not looking...:)
I don't see how this moratorium wouldn't be the BIGGEST BOON TO SHORT SALE FLIP investors ever. Think about it. How else are banks going to unload properties if they can't foreclose? Hello? Short sales!
I agree with Tim in one respect, it will certainly cause the lenders to consider the added of expenses for a longer carry period. This could force lenders to consider short sales as best case scenario.
On the otherhand, it will also likely cause uncertainty with retail buyers and could result in further weakening of an already weak market. When buyers hear moratorium they will automatically think it can affect a short sale too.
There needs to be clarity on this issue and I look to the Obama administration who are 0 for 2 when it comes to helping the taxpayers.
Hi, I would say continue full steam ahead! In a short sale with the owner in the home, you're not at a foreclosure sale, maybe just prior, but it's not a foreclosure and therefore, not effected by the robo signing questions.
And, you need to advertise your flip in such a manner as to point out that the home is not a foreclosure. There are buyers getting cold feet because of the issues being raised as to good title and wrongful foreclosures, so make sure people know your property is not a foreclosure!
As to what comes of it, there may be better proceedures for foreclosures that come from this. State laws may be changed. Liabilities may be limited. Title issues may be waived.
But for those doing SS deals, nothing to worry about....it's not a foreclosure issue! Good luck, Bill
My question, though, is why will homeowners want to sell? There's nothing to motivate them if not a looming foreclosure date. They'll be living payment free until this gets sorted out, no?
I agree with Jeff. If you were a homeowner struggling with payments, and you had the choice to not pay your mortgage for an indefinite period of time OR short sale and have to pay moving costs/deposit, which one would you choose?
And then there is the supply side. When REOs are taken off the market and there isn't a constant stream coming available? Haven't heard how long this will take to shake out.
Announcements concerning how this will shake out, for some states will be today. Similar outcomes elsewhere, probably this week.
As I suggested in another thread, states will make sure things move along, maybe fine the lender and the money will be going to the state, I doubt there will be any relief for those evicted, we will see.
Motivating a seller? If they stay there longer and don't pay, the lender will foreclose eventually, the loan still accrues interest if proceedings did not start. Loan mounts up, the deficiency judgement will be greater from any foreclosure. Why not ask them...don't you think it's in your best interest to sell and avoid the possible judgement of a larger deficiency and credit score hit ?
Work and show the numbers on the balance without making payments and see what happens in six months!