With recent HUD statistics showing the Reno-Sparks area with 49% of it’s homeowners underwater, there are many homeowners who are facing tough decisions regarding their homes. Everyday I hear someone say that they know someone who hasn’t made a mortgage payment in years, yet the bank hasn’t foreclosed on them. Many are just waiting to see how long they can go before the bank moves forward and forecloses on them. Well the clock may be running out on those homeowners.
Here is why 2013 might be the best year to take action and move forward.
POSSIBLE CHANGES IN FORECLOSURE ENVIRONMENT – We have already begun to see an increase in the number of Notices of Default (the first step in the foreclosure process) being filed. Through January 21st there were 187 NOD’s filed. In January 2011 there were only 36. That’s a pretty big increase. Many large banks are finalizing their review of their foreclosure processes and moving forward. In addition we are seeing more loans being transferred to new servicers who are not part of the National Mortgage Settlement. In Nevada our State Legislature meets next month and will face calls for some changes to AB284 which may give banks a certain comfort level to proceed with foreclosures that are needed.
DEBT FORGIVENESS ACT – When a homeowner loses a home to foreclosure or sells it through a short sale there is a tax consequence. The amount of debt forgiven – in foreclosure the entire mortgage amount and in a short sale the difference between the mortgage and the sale proceeds – is taxable. Legislation to keep these events from being a taxable event for homeowners on their primary residence came very close to expiring. Homeowners got lucky and we have one more year. Chances are this will not get extended a second time. So this year might be the year!
IT’S A SELLER’S MARKET – Current market conditions will benefit the seller of a short sale. With very little inventory on the market, buyer now know they must look at short sales if they want to have any kind of selection when purchasing.
BANK COOPERATION – Many banks are finding short sales more favorable to their bottom line. For this reason they are streamlining their processes and making the short sale process smoother for homeowners. The key here is to work with a qualified REALTOR who has done many short sales. You don’t want a novice here.
So if you have been considering a short sale, or possibly just done nothing and find that you want to move on 2013 could be your best chance to do that. Don’t wait. Ca me today. Amy Shocket, 775-815-7627, email@example.com.