Foreclosure in 91326>Question Details

Farzaneh, Home Buyer in Los Angeles, CA

Is the forclosure price on the site the sale price?

Asked by Farzaneh, Los Angeles, CA Mon Jul 7, 2008

Hi,
When I look at some forclosure listings, and their prices. They seem too good to be true.
For example some homes in my neighborhood are going for at least $600k but in the forclosure listings their neighbors are listed for $80k.
Why is that. Can I really buy that home for $80k or is there a whole process I am missing?

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Answers

5
Ana,
The question is not how much is the property, but how much can you affort?
Have you been Pre-Qualified to a certain amount of financial commitment?

This is the first step I take with my new clients to be.
You have to be Pre-Qualified, before we can tour properties on this or actually in any Real Este Market.
You have to know where you stand, what you can afford, comfortibly and not have to slave yourself to make the payments.

Any more questions, I like to help you, go to my Web-Site:
0 votes Thank Flag Link Sat Mar 27, 2010
Hi Farzaneh,

Realty track will list any homeowner who has received a NOD(notice of default) as foreclosure listing. As you read below most people because of job lost may miss mortagage payment. But they will find a way to pay and the NOD will disappear. If you are interested in receiving the list of bankown homes(foreclosed homes) drop me an email and let me know which cities and what type of the house and I will set you up to receive this list from MLS. My email address is homa@homamoaddel.com

Sincerely,

Homa
Broker Associate
Prudential Cal Realty
0 votes Thank Flag Link Mon Jul 7, 2008
NO. Realty track lists the amount of the default, but that amount is only owed to the foreclosing lender--NOT the sale price. it may be the second or third mortgage holder who is foreclosing, in which case there is much more money owed to the senior lenders than Realty Track lists. these are teaser prices. don't take them seriously. and very few of these properties actually make their way to trustee sale, as many are being sold by banks as 'short sales'. the reason is that property values are less than the amount of money owed, and banks know that no one will bid at the trustee sale. sometimes props on the MLS are advertised as short sales. often, they are not--but you can research on the web and find out what the last sale amount was to determine the actual status. and like all other sales in this market, if it is a short sale, you needn't pay the asking price.

don't get involved in foreclosures without spending time to study the process seriously. and regarding any prop, do your research--knowledge is power--even more so in this market. don't believe what anyone in the real estate industry says. do your own research. good luck!
0 votes Thank Flag Link Mon Jul 7, 2008
80K is most likely the amount of the loan balance, or the past due amount. Foreclosure data is taken from public records filed in the courthouses. A lisitng of a foreclosure is not an offer for sale. It simply tells you that the property has a legal action. Since the property owner is facing a legal action, perhaps the property owner will consider selling. Because you see it listed as a foreclosure, do not assume that is definitely for sale. Many property owners work out solutions to to solve the legal action without selling. A Realtor can reach to the property owner for you. While you can do it on your own, many property owners are very cautious as they are approached by many who want to "help" them, and can become guarded or refuse to talk to you.
0 votes Thank Flag Link Mon Jul 7, 2008
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
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Generally speaking, foreclosure is a public, bidding process. You can bid whatever you wish starting with the minimum bid, but others can and will bid as well. The sale price will be the amount of the highest bid. Remember there are a lot of other factors involved in foreclosures - you will probably not be able to see the inside of the home, there could be other title issues, and many traps for the inexperienced and furthermore, there are differences from state to state, including the right of the original homeowner to "redeem" their property for as much as a year after the foreclosure sale - meaning all that you went through could be for nothing. It's a good idea to check into all of the local nuances of foreclosures before bidding. Perhaps attend some foreclosure sales to observe before jumping in yourself. Good luck to you.
0 votes Thank Flag Link Mon Jul 7, 2008
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