Depending on where you looked and how a website syndicated/labeled its data, that $112K could mean differently.
In Garden Grove, it is almost impossible to find a house for $112,000. In your message it said "Loan Amount: $112,000". It more likely referred to the amount of of the lien in pre-foreclosure cases. Please be noticed that there could be more than one liens on a property. Current owners may explore different options such as loan mod, refinance, or short sale. If none of those efforts works out, the property may go to foreclosure.
In short, those pre-foreclosure prices barely reflect what the property will be actually listed or sold at. If you are a home buyer, you may want to focus on regular sales, short-sales, or REOs.
Good luck on your house hunting,
The promotion and raise will be helpful when buying a home. Some buyer's who fled Orange County looking for lower home prices in Riverside or San Bernardino counties wish they could come back. You may find that our home town of Garden Grove may have the home for you.
If a home is listed for sale as a foreclosure the sales price should be clearly indicated. REO homes usually sale for less than market value, but I have seen some go at market value. The price you pay really has very little to do with the amount the person who lost the home owed. Someone can loose a home with a balance of $50,000 but the home will certainly not sale for that amount as a REO. It will sale for a price much closer to market value.
I suggest you do not spend too much time looking at prices now. Wait until you are ready to buy, get yourself a local buyer's agent and get loan pre approval. The prices you see today could be very different by years end.
All the Best to You and Your Family!
Kawain Payne, Realtor
Do NOT look at Foreclosure information on Trulia or most other Consumer real estate websites. What these sites are reporting is what is RECORDED as public information when an owner is in default.
For example: You may see a place that says "Notice of Default / Pre-Foreclosure - $112,000" Or "Bank Owned Foreclosure "$112,000" 99.9% of the time this is NOT THE ASKING PRICE or Any form of current value Whatsoever!!
What is being reported is either the current "default amount" at the time the Notice of Default was recorded OR it's showing what ONE of the ORIGINAL loan balances was. Example: Owner is in default by $112,000. Or they have a 2nd lien or 3rd lien & the original note balance was $112,000.
Sometimes we get consumers on here asking "Is this beach front property in Newport Beach REALLY a Pre-foreclosures Sale w/ 4,000 sqft for $200,000, if So, How Can I Make an All Cash Offer Today"?? & we have to tell them to keep on dreamin'.
There are some excellent deals right now on pre-foreclosure & bank owned properties in Garden Grove right now, I've seen quite a few lately in West Garden Grove in the Garden Park area next to College Park East in Seal Beach,,, homes for under $475K. Of course Corona, for the same price you're going to find homes that are near or over 2500sqft that are only 10-14yrs old.
Please let me know if I can help you further, I just live down the street from W. Garden Grove, in Rossmoor, I also know Corona very well. Shoot me an email directly if you'd like to talk to me some more. I don't look back on this same Trulia thread for answers posted after mine.
Realtor Since 1996
Main Street Realtors
"My husband and I are looking to buy a house at the beginning of next year (when he will be getting a promotion/raise)."
I would advise you actually start preparing for this NOW.
1) You want to be aware of any reasons that would now prevent you from buying so you have the time to work on these so you can in fact buy in the future.
2) I sure hope that promotion/raise happens; however, what if it does not. Would you still buy? What if prices go up? What if rates go up?
I'm not saying you should buy now, what I am saying is that you should be prepared to act NOW if circumstances change by obtaining a "True Pre-Approval" (more on this below).
"We originally were thinking we'd move to Corona, CA where the houses are much cheaper, but recently decided we would like to explore the option of buying a house that is going into foreclosure near our hometown (Garden Grove, CA)."
It would be a mistake to only concentrate on distressed property. I understand the romance of finding a "great deal"; however, I also know how much time it takes to get it the way you want ... and I'm sure it won't be as bad as the "Money Pit" ;-) http://www.youtube.com/watch?v=pmDX0tgONFs
Here's a relative risk scale for property:
1) Trustee Sale (court house steps)
2) Auction Company Sale (you bidding in a pressure environment)
3) REO (reduced disclosure requirements),
4) Short Sale (primarily risk is approval timeline), and
5) Non-Distressed Sale.
"Using Trulia, I see plenty of houses listed as Foreclosures. When I click on them, I see "Loan Amount: $112,000", for example. Is $112,000 the price that the home will be going for? Or is that what the owners still owe making the MINIMUM we'd have to pay, plus anything else they were looking to make on the property?"
I'm going to guess you are seeing a RealtyTrac listing. The amount you are seeing is likely just the default amount, not what it will eventually sell for. What you are seeing is really only an advertisement from RealtyTrac to try and entice you to pay for their monthly service for information your RealtorÂ® can provide to you for FREE!
To remove all RealtyTrac â€œforeclosureâ€ listings from your Trulia search results go to your search results page. Check out the Refine Search box on the left and scroll down to 'Listing Type'. Uncheck the 'foreclosure' selection and your search will update automatically and filter out all RealtyTrac listings.
Please find a RealtorÂ® to work with to protect you interests, obtain a True Pre-Approval, avoid dual-agency, and have access to the actual MLS - not 3rd party listing sites.
â€œfind a RealtorÂ® to work with to protect you interests"
You can check to make sure an Agent is a RealtorÂ® by going here: http://www.realtor.org/rofindrealtor.nsf/pages/FS_FREALTOR?O
"obtain a True Pre-Approval"
"have access to the actual MLS"
MLS Data Accuracy â€“ Where to search if youâ€™re â€œwithout RealtorÂ®â€
When a home comes on market for sale, the previous loan should not have an impact on the purchase of your home, unless it is a short sale.
Congratulations on deciding to buy a home and for making preparations now to buy.
Please feel free to contact me if you have any specific questions.
I'm able to answer any of your other questions if you have any.
To answer the pre-foreclosure question: If a home is listed on the market and the Seller owns equal or more than the selling price. The seller will either have to make up the difference or ask their own lender who holds the mortgage to accept less than agreed in the balance. This is called a "Short Sale". It can take a while to get approval on those. Your agent can go into more details on how that works.