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....
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.
Jes Sierra, B.Sc.
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.
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!
Alain Pinel Realtors
RealtyTrac listings (as I believe this one is) are inherently misleading; you're not alone. :)
Cameron Platt, JD, CRS, REALTOR