Foreclosure in Stamford>Question Details

Masti, Home Owner in Stamford, CT

pre-foreclosure house listed in stamford

Asked by Masti, Stamford, CT Thu Jan 27, 2011

I am interested in a pre-foreclosure house in stamford listed and works in the range that we are comfortable for a second home. I wanted to know how do you go about getting more information about this property and how the process works.

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A pre-foreclosure is a short sale. The approval period for a short sale can be 3-6 months sometime shorter/sometimes longer after the offer is submitted to the foreclosing bank(s).. If you are interested in more information about short sales or this property you should contact a licensed Realtor who is experenced in short sales. Having an experence Realtor will make the process a lot less stressful for you.
0 votes Thank Flag Link Tue Apr 26, 2011
There is a huge amount of confusion concerning homes that appear to be in a "distressed" sale or potential bargain status. This confusion adds to home seller's stress levels and really does little to help potential buyers.

The term "Pre-Foreclosure" can refer to any property in a distress situation. Companies that advertise properties in pre-foreclosure are generally giving you a list of "lis pendens" properties. This refers to any property that has any legal action in place. These properties may or may not become properties for sale.

Short Sale properties (often shown as properties that need "third party approval") are properties that have been determined will sell for less than what is owed on them. If there is only one bank that will suffer a loss, the property can be approved for sale in as little as 30 days. These properties can then be closed in as little as 60 days. If there is more than one bank involved, there is a much longer time frame involved as the second bank is not under Federal pressure to get the process done. I have seen this type take as long as 2 years to close. You might get a bargain here but it might take a long time to get there.

Bank owned properties (referred to as REO properties) are properties that have already made it through the foreclosure process and are usually in pretty bad shape. These properties include abandoned properties and properties where the owners were ejected from the house by the foreclosure process. (the former owners are usually not happy campers and are known to do some damage on the way out the door). These properties in most cases require a lot of work and may not qualify for conventional financing.

Sound complicated? It sure is..... the best course is to find a knowledgeable REALTOR and buyer's agent to help you through the process and the details. BTW.... in most cases in Connecticut, the buyer pays little or nothing to have this expert advice.

Good Luck and best wishes......
0 votes Thank Flag Link Thu Mar 31, 2011
This is easy enough to do. You need to discuss with a licensed, CT real estate agent (I happen to be one).

However, I will say that the "pre-foreclosure homes" you see on some sites are, frankly, fraudulent--owner is in hiding and doesn't want to sell, attorneys are mum, and so forth. Not impossible, but nealry so.

Why bother, I say. I can get you a bank-owned foreclosure at 25% or off, in a market where properties are already 25% or so reduced, with mortgage rates at the lowest in 50 years. Just call: 646 734-8525
0 votes Thank Flag Link Thu Jan 27, 2011
Thank you for your question about a home that is in Pre Foreclosure.

A local real estate agent who is signed up with RealtyTrac will have the information readily available. Submit your information in the form on their website and someone will contact you.

Any agent may have the information needed to obtain the property because it may be on the market already. If not they can find out who owns it and the lenders name from the county.

Pre-Foreclosure is the time period a homeowner has to repay the delinquent amount of the mortgage. This time period is a great time to negotiate a short sale because it can prevent a homeowner from going through a judicial foreclosure.

A short sale is a sale where the price falls short of the loan. The Lender must agree to the sale. It is done to avoid foreclosure which can cost more. A note is left on the borrowers credit that the lender settled for less.
0 votes Thank Flag Link Thu Jan 27, 2011
Thank you Robin. Also, not all short sale sellers walk away owing nothing. There is a mean test done, usually by a bank or attorney to see if you qualify. Sometimes the owner in order to sell short has to accept a note due for what ever the banks feels is an equitable number.

I have done extensive research on this for the past 2 years. If I were to sell my home short, due to income, my husband and I would not walk away owing nothing. the bank would create a note that we would have to pay some or all of the difference. So beware of some short slaes as well. Sometimes the seller, if not in distress will change their mind at the "Eleventh Hour" about the note and squash a deal.

Again, due diligence. Realtors are good at what they do, but not everything. Unless you are very savvy at finances, more than one expert may be needed to help protect your interests.

Good Luck,
Candace Lipira, Realtor
Keller Williams Platinum Properties
candylipira@optonline.net
203-856-8501
candylipirahomes.com
CT Lic 0760787
0 votes Thank Flag Link Thu Jan 27, 2011
Pre - foreclosure is same as a short sale.

Contact a Realtor who can forward you search based on your specifications and lender approval amount

Process same as any sales transaction submit an offer HOWEVER with property involves a bank can take approx. 30 -45 response IF they even respond

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Thu Jan 27, 2011
Masti, Candace is correct. If the house is still worth more than what the person owes, and they can't make their payments, it is not a short sale.
My company is based in Stamford. Starting next week, we have a new initiative where we will get you approved in 24 hours, and close you in 15 business days, as long as you have all your paperwork together. Of course any title issues have to be worked out, and you have to have the contract signed by the seller, who at least at this stage will be the current owner, not the bank. Let me know if I can be of any assistance.
0 votes Thank Flag Link Thu Jan 27, 2011
Pre foreclosure doesn't automatically mean it''s a short sale. Short Sale doesn't equate to pre foreclosure. There are Short sales occurring even tho the owner is up to date with payments. Pre foreclosure means there is at least a Lis Pendens on the property due to default by the owner. It means there are late payments severe enough to start a process towards foreclosure. Go to town hall to the records department, look up the address and you will see recorded liens and transfers. Again, due diligence is required. A Realtor can help you with this. Ultimately it is the buyers responsibility with the help of a qualified consultant, such as an attorney to make sure all is good to go with a closing. Again, what I write is suggestions since I know nothing about property. No representations. "Caveat Emptor." Let the buyer beware!

Good Luck,
Candace Lipira, Realtor
Keller Williams Platinum Properties
candylipira@optonline.net
203-856-8501
candylipirahomes.com
CT Lic 0760787
0 votes Thank Flag Link Thu Jan 27, 2011
If it's listed, contact listing agent or an agent who will represent your interests exclusively. They will guide you through the process. It is also recommended that an interested buyer do their own due diligence at various departments at Town Hall or other locations, such as Town Clerk, Assessors office and building departments. One thing to look for, especially if you are financing through a bank, is to make sure any changes to structure, etc. has permits in place, such as if and when an oil tank was removed, an addition made, etc. There have been issues with closings at the "Eleventh Hour" when last minute a defect is discovered, permits not filed, etc.. Banks maynot approve closing. This is basic information. Find someone you trust to represent you.

Good Luck,
Candace Lipira, Realtor
Keller Williams Platinum Properties
candylipira@optonline.net
203-856-8501
candylipirahomes.com
CT Lic 0760787
0 votes Thank Flag Link Thu Jan 27, 2011
Hi Masti,

A home that is in pre-foreclosure is usually a "short sale". Whereas in a foreclosure, the home is vacant, a short sale usually has the homeowner still living in it. Offers are still presented to the homeowner and once an offer is accepted, it goes to the bank who would have to accept it. The homeowner gets no money from the sale of the home and is able to walk away. I have extensive experience dealing with short sale properties and would be happy to assist you. I am currently the listing agent for 4 short sale properties in both Stamford and Norwalk. Please give me a call or email me and I can answer any further questions you may have. I look forward to helping you with all your real estate needs.
Todd Auslander
Keller Williams Prestige Properties
203-918-8174
tauslander@kw.com
http://www.theauslandergroup.com
0 votes Thank Flag Link Thu Jan 27, 2011
Hello Masti,
You must be referring to a short sale property if it is in pre-foreclosure. I suggest that you hire an experienced agent in the area to assist you in finding additional information about the property and how the short sale process works. I would be happy to assist you since I have experience in short sales and have had numerous transactions selling homes in Stamford. Please, feel free to contact me with the property address as I would welcome the opportunity to find out more information on the home for you and explain how short sales work.
Thank you!

Laura Feghali
Prudential Connecticut Realty
0 votes Thank Flag Link Thu Jan 27, 2011
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