Foreclosure in Los Angeles>Question Details

Ladina, Home Buyer in 90015

If a property is in pre-forclosure. How long does it take for the property to get an MLS# assigned to it or for it to be in forclosure status??

Asked by Ladina, 90015 Wed Mar 28, 2012

Help the community by answering this question:

Answers

13
If the property is in Pre Foreclosure and the property owner let's it go into Trustee Sale (auction), it really depends on the bank. These days in the state of California, the process takes an average of 6-9 months , however due to all of the alternatives available to home owners, some lender could take as much as three years before they actually foreclose on the property.
In regards to how long it would take to see it listed on the mls, That also depends on many factors because if the property gets sold to a third party at auction you may never see it on the mls. If it does not get sold at auction, it usually goes back to the bank and they will assing it to an asset manager who will assign the listing to a local realtor and that process could take some time. I've seen some that get listed withn a month and others just take longer for many different reasons.
2 votes Thank Flag Link Wed Mar 28, 2012
Per-foreclosure just means that the owner has defaulted on their mortgage. An MLS # is only assigned when it is listed for sale. From this point the story can go numerous directions depending upon the circumstances. There is no easy answer to your question since it is a possibility that the property will never actually come up for sale. The owner could pay their mortgage current and then continue living there. The most likely scenario for a large default is that the seller will attempt a loan modification, fail to get one and then list it for a short sale instead of foreclosing. That whole process of waiting for a loan mod option could be anywhere from 3 months to over a year. Or, the owners could just decide they aren't interested in keeping the property at all and just sell it right away which could put it on the market very soon after the notice of default hits, like days.

Important thing to know is that a pre-foreclosure is not a property that is available for purchase and it may not be for a very long time. There is no way of knowing the answer to your questions unless you personally speak with the owner of a property.
2 votes Thank Flag Link Wed Mar 28, 2012
Hi Ladina;
To help you understand the process a little better, you should think of it like this:

A foreclosure occurs when a property owner cannot make principal and/or interest payments on his/her loan, typically leading to the property being seized and sold.

The foreclosure process is not very difficult to understand. There are several stages during which the homeowner has an opportunity to bring the loan current and avoid foreclosure. Most times, when you see a "pre-foreclosure" heading on the internet, it will be months or years, IF EVER, that the property will be on the open market via the MLS. Properties will be brought current by the owner, or sold through a "short sale", before going to foreclosure. Foreclosure is the path of last resort. If the property does go to foreclosure, the public may be given the opportunity to buy it at auction prior to it ever going back to the lender and placed in the MLS.

After about three to six months of missed payments, the lender orders a trustee to record a Notice of Default (NOD). At the County Recorder's Office. This puts the borrower on notice that he or she is facing foreclosure and starts a reinstatement period that typically runs until five days before the home is auctioned off.

If the default isn't corrected (the loan must be brought current) within three months, a foreclosure sale date is established. The homeowner will receive a Notice of Sale, and this notice will also be posted on the property. In addition, the Notice of Sale is recorded at the County Recorder's Office in the county where the property is located. Finally, this Notice of Sale is also published in newspapers local to the county in question over a three-week period.

The foreclosure Trustee Sale typically occurs on the steps of the county courthouse in which the property is located. The time and location of this sale are designated in the Notice of Sale. At the Trustee Sale, the property is auctioned in public to the highest bidder, who must pay the high bid price in cash, typically with a deposit up front and the remainder within 24 hours. The winner of the auction will then receive the trustee’s deed to the property.

Deborah Bremner
The Bremner Group at Coldwell Banker
REALTOR, 00588885, ABR, CDPE, eAgent, CSP, SFR, HRC, CRE
(O) 310-571-1364 DIRECT
(D) (310) 800-2954
http://www.thebremnergroup.com
Accredited Buyer Representative|Certified Distressed Property Expert |Pre-Foreclosure Specialist Certified
I want you to know that I appreciate any referrals from friends and associates who may be in the market to buy or sell real estate. You can count on me giving them the same high-quality service I provide to all of my clients.
1 vote Thank Flag Link Wed Mar 28, 2012
"Pre-foreclosure" is a very misleading term which generally means that only a "notice of default" has been filed. The large majority of these "pre-foreclosure" houses will not become foreclosures any time soon, it could be a minium of 120 days on up to months or even years. These houses are not technically "for sale" (as the owner of the house has not in most cases "listed" them for sale), so for them to be listed as "for sale" is very misleading at best. Bottom line, unless it is a very special house, I would not wait around for one of these houses to come on the market. And the listed price is probably a very unrealistic price as it is taken from the amount due on the defaulted loan, which can have nothing to do with the market value of the property.
1 vote Thank Flag Link Wed Mar 28, 2012
If a property is being foreclosed on it could take quite some time before it is listed for sale. If the current owners who are being foreclosed on decide to try to sell before the auction date and they owe more than what it is worth they would list it for sale as a short sale and try to get the lender to accept less than what they owe for the sale price. If the current owners decide to just walk away from the property and let the lender foreclose on them then the property will eventually be foreclosed on and if it doesn't sell at the auction which most don't the lender will become the legal owner and they will contact a real estate company to list it for sale for them. The time that this will take really depends on a few things such as when the auction date.
1 vote Thank Flag Link Wed Mar 28, 2012
MLS # is only assigned to property listed for sale by a broker.
0 votes Thank Flag Link Fri Apr 13, 2012
If the property is in pre forclosure and actually becomes a REO it could take a few weeks or several months for the bank to get it on the open market.

Kawain Payne, Realtor
0 votes Thank Flag Link Tue Apr 3, 2012
Ladina, are you in the Los Angeles area? an MLS # is issued when you list your home and the agent inputs your property details in the MLS. Once you have missed 3 payments your lender may file a notice of default your foreclosure process begins. Check out my website for additional details and should you have any questions or advice, feel free to contact me. I am a Certified Distressed Property Expert
Web Reference: http://www.saveahome.net
0 votes Thank Flag Link Tue Apr 3, 2012
Ladina,
The pre-foreclosure can take from a matter of months to years before the trustee sale takes place and even after a foreclosure, can still take several months to get assigned, prepared for market and then come on the mls. If you have a client interested in a property, go for it now... waiting could literally take years. Good luck.
Sincerely,
Richard "RJ" Kas (SFR, SRES)
"Representing the finest properties from Los Angeles worldwide"
KAS Properties - Coldwell Banker Previews International - Beverly Hills South
166 N. Canon Dr, Beverly Hills, CA 90210
310.859-5334 office - 310.488.9826 mobile - 310-273-0690 fax ATT: RJ
RichardKas@gmail.com - http://www.RJforLA.com - DRE: 01352771
Sellers Buyers Investors Leasing Consulting
0 votes Thank Flag Link Thu Mar 29, 2012
MLS is a real estate service that we provide to our clients to expose their properties to other MLS members and to the public. In rare cases, properties are not listed in the MLS as per agreement between agent and client.

Having said this, a pre-foreclosure does not necessary have to have an MLS #, even if an agent is handling the pre-foreclosure listing. A pre- foreclosure is simlply labeled when the owner of a property has defauledt on the mortgage loan, and the owner of the mortgage loan note has made it public by recording a Notice Of Default.

I hope this is understandable. If you need an agent to buy or sell in LA, contact me.

Thanks,
Doug
(213) 375-8741
Reference: http://theforeclosureprocess.info
0 votes Thank Flag Link Wed Mar 28, 2012
Could be as short as months and as long as a couple years depending on the particulars of the situation and lender. If you have the luxury to wait keep your eye on it but it is likely to be a lengthy process.
0 votes Thank Flag Link Wed Mar 28, 2012
Hello Ladina,
If Notice of Trustees sale has been posted on the door and lets say the schedule date was today and it indeed got sold at the Auction many things can happen.
If its taken back by the bank, a Realtor could be contacting the occupant as soon as tomorrow and then I have had properties where there were problems in title and it took over 6 months before the bank could sort it out.
If its bought by an investor, they will contact you asap, infact many will do it Today itself. this will be faster.
In either case you could be offered Cash for keys ( money to vacate in 30 days in broom clean condition)
Hope this helps. Good luck.
Pebble Singha
Head of Short sales at KW Encino.
818-919-5656
http://www.pebblesingha.com/stopforeclosure
0 votes Thank Flag Link Wed Mar 28, 2012
When in pre-foreclosure the seller is not actively selling the home, although that can be one solution to their financial problem. Sometimes they pursue a loan modification instead or are waiting for a big bonus, stock sale or other money to come in and get current.

The seller must list the home with a real estate agent/broker to post the home for sale on the MLS.
0 votes Thank Flag Link Wed Mar 28, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer