Foreclosure in Piedmont>Question Details

Piedmont, Home Buyer in Piedmont, CA

What does this mean? Is the asking price for this pre foreclosure property $10,035?

Asked by Piedmont, Piedmont, CA Wed Oct 7, 2009

This property is a Notice of Default. This is the initial document filed by an attorney or trustee on behalf of the foreclosing lender that starts the foreclosure process. This 1512 square foot property has 3 bedroom(s) and 1 bath(s). The estimated loan balance is $10035. To access more extensive information on this property click the 'more property detail' link below. You will need to register for full access. Information listed with each property including estimated loan balance is derived from sources deemed accurate but we do not guarantee the accuracy of such information. Please consult all relevant title documents prior to purchase.

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6
Piedmont --- since you identified yourself as a buyer, presumably, you copy/pasted the text about this particular property from a foreclosure listing site.

Somehow, I just never thought there would be pre-foreclosures, etc in Piedmont. But there are!

This property is located on Harvard Dr. The projected sale date at auction is on Jan. 8, 2010. The default amount is $10,035, but the opening bid IF it happens, is $185,535 based on a loan amount of $176K.

It is highly UNLIKELY that it will sell for this amount since the market value of this property is approximately $804K, and the owner has significant equity of over $300K on this. The loan balances are around $486K.

So if the property owner is in default for only $10K, the chances are the owner will find a way to resolve this default, via: payment in full, forbearance, loan modification, or even short sale if it comes to that.

And..it doesn't look like this property is not listed for sale, which is an indication of the home owner's plan to stay

As they say, if it's too good to be true....
0 votes Thank Flag Link Mon Oct 12, 2009
Piedmont,
It's possibly the defaulted amount owed. Even if it is listed that low and say some one on at the county steps offered a winning bid of $100k and didn't meet the beneficiary's (bank's) reserve, the beneficiary will just take the property back and assign it to an REO agent.

If properties were that low everyone would buy at a trustee auction. If it sounds to good to be true, then it is.

Best Regards,
Jes Sierra, B.Sc.
Realtor®
0 votes Thank Flag Link Sat Oct 10, 2009
OMG this looks like a Realtytrac ad! They want you to give a credit card approval for a free trial. A notice of default is just the the people have not been making payments on the loan. They may not and may never have to pay it or they may pay it off.
In my area if a vendor does a sloppy job and the homeowner refuses to pay the vendoe must file a NOD if they are trying to collect the bill. When the parties get to court the home owner may not have to pay and may even get damages from the vendor for sub standard work.
Be careful with the "forclosure" listing sites that make you use a credit card to get information. Have you ever run into a place where you have to give a credit card for your free trial that makes it easy to quit? The information they post are legal notices not properties for sale.
Good Luck!
Web Reference: http://www.Find1Home.com
0 votes Thank Flag Link Sat Oct 10, 2009
Hi,

As it has already been mentioned the Notice of Default is filed typically when the home owner has not paid their mortgage for 3 months. Although this is typical, I find that every bank seems to do this differently. The information your are finding as the "asking price" is really the amount of back mortgage payments that are outstanding.

There are several websites out there that I personally find misleading. Listing a pre-foreclosed property as a "listing" with an asking price of the back mortgage due, does protray a realistic picture for the particular property.

Also keep in mind even though a Notice of Default as been recorded against the property, there is still a period of redemption that the current home owners have. If they are able to come current on their mortgage, then they will be able to stay in the house. If the current owners are not able to come current on their mortgage the property will go to foreclosure. This process can take anywhere from 3-6 months to complete, again based on the bank. There will then be a trustee sale and if the property does not sell at the trustee sale thent the property will become an asset of the bank and more than likely will be listed as a bank owned property.

One thing I will caution, if the price seems to be too good to be true, it probably is. Homes in Piedmont sell for much more than $10,035 even in this current market. Being realistic about the market you are looking in will help you make a decision that is right for you and your situation.

I hope this helps answer your questions!

Lisa Cartolano
Alain Pinel Realtors
0 votes Thank Flag Link Fri Oct 9, 2009
Cameron gave the right answer!! It's just the homeowner due payment on their loan. This does not even mean that they are selling their house, the homeowner might be working with bank for loan modification also, so if you are looking to buy a house then best is to work with a realtor, who can give you the listings which comes on the market and you can save your time by looking at the property which is available to buy...good luck
0 votes Thank Flag Link Wed Oct 7, 2009
No -- it certainly is not. That $10,035 figure is likely the redemption amount -- how much behind on the payments the borrower currently is. When banks foreclose on properties, they typically offer them for sale at 85% to 90% of market value in order to get them sold quickly.

RealtyTrac listings (as I believe this one is) are inherently misleading; you're not alone. :)

Best regards,
Cameron Platt, JD, CRS, REALTOR
ccp[at]plattinc.com
510-708-4137
Web Reference: http://www.plattinc.com
0 votes Thank Flag Link Wed Oct 7, 2009
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