Short sales have provided real estate investing over the last few years but are they about to become extinct?
Short sales offer huge discounts on great homes for real estate investing and they have been becoming easier and faster to get done. However, this could be window of opportunity that is about to close for real estate investing companies. Why and what does this mean for you if short sales have been a major source of deals for you?
Apparently Fannie Mae has been sending out letter to homeowners, offering $7,500 in some cases if they opt for a deed in lieu of foreclosure. To the frustration of many agents and real estate investing companies this has been killing short sale deals which were already in progress.
Add to this the end of the tax break for the amount of the loan forgiveness at the end of this year and short sales could become even less appealing for homeowners making the sales pitch a lot harder for investors. Plus of course 2012 is likely to see a number of new plans rolled out by lenders and the government aimed at stemming the foreclosure flow which could further take away from the motivation to approve short sales.