Home Buying in Newport Beach>Question Details

Richard Viren, Real Estate Pro in Woodland Hills, CA

At pre-forclosure property listed as 150K loan amount, is that same as selling price, what does it mean?

Asked by Richard Viren, Woodland Hills, CA Mon Jan 28, 2013

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The loan amount is the amount the current owner borrowed from the lender to buy the home. Short sales typically sell for market value in the area beng sold.
0 votes Thank Flag Link Mon Jan 28, 2013
That's the loan amount in default at the moment. Has nothing to do with selling price. It's unfortunate that Zillow is posting Notices of Default now. I receive non stop inquiries on properties that aren't even on the market. Shouldn't be allowed. You know the old saying, "if it sounds to good to be true...it probably is". That's good advice for these postings. If it was that price, there would have already been hundreds of others putting offers in.
0 votes Thank Flag Link Mon Jan 28, 2013
Hi Richard,
There may be some confusion on the terminology.
"LOAN" Amount is the mortgage amount. This is NOT the sale price.
"DEFICENCY" amount is the amount that is passed due (as Cyndi described)
"Listed" refers to a property that has been placed for sale using a Real Estate professional and placed in the Multiple Listing Service (MLS)

If you are browsing a foreclosure site, it will tell you houses going through various stages of foreclosure as well as the loan and deficiency amounts. This has nothing to do with whether the home is LISTED (i.e.; for sale) or the sale price.
I hope that this helps.
Feekl free to call me with any questions about the process.
714 206-6616
0 votes Thank Flag Link Mon Jan 28, 2013
I have never seen a loan amount listed on a short sale before, it would seem odd to do that. If $150k was owed on the loan and they were selling short they might list it at something like $125,000 and try to get the bank to lose the other $25,000. the bank could say no, we will allow a sale at $135,000 but not less. Then it would be up to you to accept it or not. That is how a short sale works. If they tell you the loan is for $150,000 and you offer that amount the bank will want to make sure they get the $150k and the seller would have to pay the Realtor and fees to close. The seller could ask the bank to pay those fees for the seller in which case we are back to a short sale with the need for the bank to approve it.
0 votes Thank Flag Link Mon Jan 28, 2013
Hi, Richard. No, this is not the same as a selling price. It is the amount of the loan that deficient. When you see a home as a "pre-foreclosure" with a loan amount, the owner is behind on his payments and the lender has placed this staus on the home. There are many options for the homeowner at this point. If you would like more information on this process, just let me know. I have a lot of experience with short sales and foreclosures - see my designation of SFR.
0 votes Thank Flag Link Mon Jan 28, 2013
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