Thanks Cindy. Actually, it is a really small town, so I'm using the local newspaper and courthouse records, and I have a good friend who does title searches. I mailed a letter to the owners, so we'll see what happens.

They've had to home for 13 years. Which may be why it isn't on the market - emotional attatchment. Maybe they are hoping for a miracle before the sale.

Fri Jul 18 2008, 11:02

Sounds like you are using a foreclosure service for your info. ONe lender could foreclose...but there could be two other lenders plus tax liens and more against the home.

PLus...not all sellers losing their homes benefit from the mortgage debt relief act. For instance....if a seller has not lived in their home for 2 out of the last 5 years and they sell the home short....lets say it's $200,000 short for example......the amount forvgiven is treated as income by the IRS. So....in a 25% tax bracket....the seller would owe $50,000 in federal taxes to the IRS.

Hope this helps! (And be prepared for hostile home owners)

Wed Jul 16 2008, 23:38

I guess they just have their head in the sand. It is just a phenomenon that I don't understand. There are just so many in our area that could have been on the market, but they just get foreclosed on without the person ever trying to sell. And they use terms like "let it go back" or "gave it back to the bank", which is easier than saying they lost it, I suppose.

Wed Jul 16 2008, 05:30

I have been buying foreclosures from home owners for the past ten years and have always been surprised by the fact that they wait until the last minute. It is a hard thing to swallow, and many of them are looking for other options and hoping for the best as the clock ticks by. http://www.propertyhookup.com

Tue Jul 15 2008, 15:43

Nervous - I tried that site, but quickly realized that the information for my area was severely outdated. I found the foreclosure/sale notice in the local newspaper. I looked up the two liens that were specifically listed in the notice for the mortgage and a line of credit (in the clerk of court's office). Great answers - thanks. My theory on this particular home is that they hope to catch up before the sale, since they haven't tried to sell it. Its been there home for nearly 15 years.

Tue Jul 15 2008, 11:24

There could be a few reasons for this. First of all, how do you know what their equity in the house is? They may only have a mortgage for 100k on a 200k valued house but that doesnt mean that they didnt put in a 150k kitchen/bath remodel last year out of their savings or credit cards. Or maybe the owners are only a couple of payments behind and they plan to make it up and save the house. Or even better, maybe they're using their lack of payments as a way to convince the bank to modify their loan or forgive part of the debt. Or maybe theyre planning to file bankruptcy to protect the house for a while.

Also, I dont know where youre getting your information from which says that the house is in foreclosure but if its a site like realitytrac, it could just be incorrect information or out of date information. Maybe the house was already sold or the payments were already brought up to date and the foreclosure website just hasnt been updated.

Tue Jul 15 2008, 11:07

Jennifer,

Contact the homeowner, and then tell us what you find out; there is always a story, and a reasoning behind someone letting go of a home.

Perhaps it is back taxes, the homes maintenace costs, or their own health and welfare issues which makes a work out impossible; anything making ruined consumer credit the least of their thoughts.

Though I think some homes do need to be relisted for half of their current marketed price before I would consider them in near sight in my current house hunting; there are alot of juicy buystobe made if one can get past the stigmas attached to the word landlord@

Tue Jul 15 2008, 11:04

Lending answer:

Banks are scratching their heads over that as well, Jennifer. Foreclosure doesn't solve any problems for the banks - they're *still* not getting payments, and now they must pay taxes, insurance, maintenance, security, and find a Realtor to sell the thing

Tue Jul 15 2008, 11:04

This is a situation where about 90K is owed, but the house could be worth up to 200K, depending on the condition. Its a nice home, in a nice neighborhood. But it hasn't been on the market at all, even as a FSBO. I just don't get it. Auction date is in about three weeks.

Tue Jul 15 2008, 11:00

Most people don't want to "lose" money, and there are a lot of people who think their home is different/better, their neighborhood is different/better, and there is a bus full of people who landed from Mars that is on its way to their house. I don't understand it either, there are houses that consistently seem to stay 25,000 above where they should be priced if they want to sell. There's a FSBO on my street that I recommended they list at 520,000 three years ago. They were asking 625,000. Now they're asking 525,000, and they'll be lucky to get 499,000. People who understand that you can't just "list" a stock for more than you paid for it, and wait till someone comes along who wants to pay more than market, or you can't expect someone to come along and offer you 8,000 for your 92 Bronco when every other one in the paper says 3,000, just cannot accept their home's true value.

Tue Jul 15 2008, 10:57