Foreclosure in Reston>Question Details

Jeff, Home Buyer in Reston, VA

Resale vs. Foreclosure, MLS Activity

Asked by Jeff, Reston, VA Fri Jan 16, 2009

I have noticed on Trulia that bank owned homes can be classified as either foreclosure or resale.
1) When does the change take place from foreclosure to resale on Trulia
2) Does the price listed against a foreclosure have any relevance to a potential buyer
3) At what point does a foreclosure get added to MLS

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Answers

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BEST ANSWER
Hey Jeff -

1) These listings all appear to be pulled from RealtyTrac. Basically, the foreclosure listings from RealtyTrac are NOT listed for sale. There appear to be two types of "foreclosure" listings - Notice of Foreclosure and REO. Neither of these have been actually listed for sale.

Notice of Foreclosure (or Notice of Default)
Property owner has fallen behind on their payments and the mortgage company has filed a notice of foreclosure at the county courthouse (required by law before they can proceed with the foreclosure). Unless the current owner pays the penalties and missed mortgage payments the bank will repossess.

REO
The bank has already repossessed the property but it is not listed on the MLS ... yet. It depends on the bank but it can take up to 3-6 months for a foreclosed property to be listed as a bank owned on the MLS.

Once the property has gone back to the bank and been listed for sale through an agent it will show up as a regular resale. My recommendation is to ignore the "foreclosure" listings unless you are a hardcore investor who has a lot of time to contact owners who are in trouble. You could try to contact banks directly but that is pretty futile given that they can't handle that kind a call volume.

2) The price listed for the "foreclosure" properties is more than likely entirely based on the amount owed to the bank that is foreclosing. It has no connection with what price the property will be listed on the MLS after foreclosure proceedings are complete.

3) Can be 3-6 months after the bank forecloses. As I said, I wouldn't waste any time tracking foreclosures - there are plenty of bank owned homes listed on the MLS already.

You can use FranklyMLS to search for bank owned homes only - try one of these -
Reston bank owned
20190 bank owned

If you need any help with advanced searches just let me know. Hope that helps.

Mike
http://blog.ProvidentTeam.com
0 votes Thank Flag Link Thu Jan 22, 2009
Jeff... I think your exact questions have been answered, but I wanted to provide you with some more information. Please take a look at the information in this blog post. I work in the Reston are, so if I can assist you further, please feel free to contact anytime. Also, for homes being offered for sale, including pre and post foreclosure properties, please feel free to use the search engine on my web site - that information is pulled directly from the MLS, so unlike Trulia, all of these homes are available.

Best Regards,
Vicky Chrisner
http://www.VickyChrisner.com
703-669-3142
0 votes Thank Flag Link Sat Jan 24, 2009
Jeff,

1. It all depends on how it classified in the MLS. Trulia takes information from a number of different sources and so its information is only as good as the information given to the original source by the owner or the agent. Generally a resale is a property owned by an owner (in my opinion) and a foreclosure could be owned by a bank or by a homeowner but is involved at some stage of the foreclosure process.

2. The price listed generally reflects what a seller will accept for the property (for for-sale properties) there are some services that will list the price that the property was foreclosed at (bought at sherrif's auction for) this number really means very little.

3. When the bank or seller agrees to list the property for sale with a broker who is a member of the Multiple Listing Service.

Cameron Piper
Web Reference: http://www.campiper.com
0 votes Thank Flag Link Fri Jan 16, 2009
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