If the home is in pre-foreclosure it is most likely a short sale.....there are people who go into foreclosure due to personal problems and are not upside down, but that's rare. If it's for sale, it will be listed in the MLS with a listing agent. What you need to do is find a Realtor to help you. We will run comps to make sure the price is a good one (most short sales are priced VERY low) and negotiate the terms. Then you wait for bank approval.
Although you can wait a long time for the short sale approval, once you get it and their terms, the escrow process is exactly as if it were an equity sellers. We would then do home inspections and get the financing etc. The worst part is the waiting.
The pre-foreclosure (short-sale) is offered at $999,000, that is what the listing agent came up with when they did the comps.
The owner (a bank or title holder) is going to send an appraiser to see if the value of the property and the title holder is going to counter or honor the listed price.
Also, it all depends how many buyers are out there trying to buy a home as well. Multiple buyers will submit offers higher than the listed price.
Hope this help,
Jes Sierra, B.Sc.
It all depends on view, location, size, age and condition of the considerably home. Dana Point is one of the cities where home prices vary considerably with location. So you need to know the comparable sales from the same neighborhood and understand the current trend. In the price category you mention there is still downward pressure on price but if it is a great house with a spectacular view it may get bid up over the 99k price.
The most accurate answer to your question would be answered through doing a thorough analysis of the neighborhood and comparable home sales.