Lisa:

Trulia's list of "foreclosed homes" appears to be a list of homes in pre-foreclosure status. Please note, not all homes in this status are available for purchase. Home owner's often work something out with the lender or refinance to stop a foreclosure at this state.

However, to address your specific question, these are homes against a Notice of Default (NOD) has been filed and simply means the homeowner got behind in their payments and the bank is taking the first step needed in the legal process to sell the home and get their loan paid. (In California this legal process takes 111 days.) The information on the NOD only relates to the single loan, held by the lender who has started this process, and which is in default. There could be senior and/or junior loans outstanding. There could be tax liens. There could be other types of liens (like HOA liens) against the property. So, in your example, the $50K foreclosure in Willow Glen could represent the 3rd Trust Deed, with a $1.0 million 1st and $500K 2nd as senior liens and a $100K mechanic's lien as a junior lien. If you purchase this home in the pre-foreclosure stage, directly from the owner, these additional liens would still be owed.

If you want more specific information, feel free to contact me. I have worked in this area, exclusively, for the past 5 years.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty

Mon May 19 2008, 06:54