Real estate investors looking for angles to motivate underwater and delinquent homeowners to sell at attractive discounts now have 5 powerful reasons they need to act fast.
Besides the horrific long term credit and financial consequences of going through a foreclosure homeowners now face even uglier penalties than they could have imagined as well as tighter deadlines to avoid them.
5 reasons struggling homeowners need you to buy their homes quickly:
1. Cash Payouts for Short Sales Going Away
Bank of America borrowers are fast running out of time to take advantage of the up to $30,000 available in relocation assistance for completing short sales. Those who drag their feet are likely missing out on their only chance to walk away with money in their pockets.
2. Tax Breaks Ending
Those who end up receiving any mortgage forgiveness after the end of this year will have to count that as income on their tax returns. While many may feel so broke they don’t even plan to file taxes anytime soon, sooner or later it will catch up with them. This could mean paying taxes on hundreds of thousands of dollars of extra ‘income’ and extremely expensive penalties.
3. Banks Speeding Up Foreclosures
The massive mortgage settlement opened the flood gates for foreclosures. While some sources may be reporting foreclosures are down in some parts of the country others like Florida are experiencing a rising tide of foreclosure, with an 80%+ jump in the last couple of months alone.
4. Mortgage Lenders Far More Eager to Possess Homes
Lenders know the faster they flow through foreclosures the faster things will get better for them too. They are also now much happier to grab homes as REO prices are rising and demand for them is surging at an incredible rate.
5. Garnished Wages for Those Who Lose Homes to Foreclosure
As if the bank taking your home and your credit being trashed wasn’t bad enough by itself, those who have been hit with deficiency judgments are now having their wages garnished, bank accounts cleared out and could have personal belongings seized and sold to compensate banks for their ‘losses’.