Depending on your needs and financial situation, it may be your best be to speak with a Realtor to discuss your options and figure out a game plan.
The foreclosure process starts when a homeowner does not pay their mortgage for a minimum of 3 months. Then a Notice of Default (NOD) may be filed against the property. These notices are public record and this is what you are probably seeing here on Trulia.
However, many of the NOD's may be very old. In some cases, they may be over 3 years old and there is a history that has transpired during this time.
When a NOD is filed against a property, due to the Obama Home Affordability Act, the banks must reach out to the homeowner to attempt to resolve their mortgage deficiency by offering solutions like bringing he loan current, doing a loan modification, refinance or restructure of loan, short sale, deed in lieu of foreclosure or just to go to foreclosure.
What happens in this case, is that this ties up the property for several months, sometimes for several years, whereas the homeowner sits in the house, either making reduced monthly mortgage payments or no payments at all...attempting to do a loan modification or a short sale until the bank decides that they will or will not qualify and then they either get the loan modification or foreclose.
The process can be lengthly.
Once the NOD time period is up, which is usually 3 to 6 months, depending on where the bank is with the process, then the bank will file a Notice of Trustee's Sale (NOTS). This notice tells the homeowner that the property will be sold at auction on a specific date if the mortgage loan is not cured. This usually gives the homeowner 23 to 30 days before the auction date. This is also public record. However, the auction date is subject to change, be postponed or be canceled depending on what the homeowner and bank decide to do.
If the homeowner is in the loan modification process, the auction date may be postponed until final determination by the bank. The homeowner may file bankruptcy, which will postpone and/or cancel the auction date until the bankruptcy is discharged, which takes about 6 months from the date it was filed with the courts.
I had a short sale client who stayed in their house for 3 years without paying their mortgage. I have heard of people doing this for up to 5 years.
So, as you can see, these NOD's on Trulia may not be accurate. Your best bet is to work with a Realtor who knows this process and can take you through it.
Your other option is to learn how to track the NOTS's and then go to the Auctions to purchase the homes. For this, you will need to have cash on hand for the purchase price.
There are also websites where you can bid on properties...sight unseen...I don't recommend that because you may be getting a "Money Pit" home with deferred maintenance and other major issues.
Make sure you see the property first and take a licensed contractor with you to evaluate the property.
Let me know if you have any questions. I would be more than happy to assist.
I have a major foreclosure background...I worked directly for the banks liquidating foreclosures in the past. Keep in mind that the inventory has dwindled down.
All the best,
Kat Becker, Realtor
For mortgage help, call (630) 639-1081 or email for a free pre-approval in less than 10 minutes. We lend our own money and are licensed in 49 states and you can apply online at http://www.myccmtg.com.
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Sr. Loan Officer
Crosscountry Mortgage Inc.
Phone: (630) 639-1081
The amount listed is the amount the borrower owes and not the value of the home.
The foreclosure process is lengthy and hard to predict as an outsider.
There are companies that will sell you lists, however, a property can come off the list as a foreclosure as late as the same day of the foreclosure sale.
Foreclosures occur on the courthouse steps and are an all cash transaction without Title insurance.
So in order to get into purchasing foreclosure properties, you really have to know what you are doing, or hire someone that does.
You will need to work with a realtor to purchase a bank owned home. Banks do not negotiate directly with buyers. The banks have assest managers who assign the listings to realtors who in turn put the on the market.
If you want to have a chance at buying a bank owned home, I suggest you start working with a realtor. He/She can search for bank owned homes for you.
Bank homes do often sale below market value, however in some market the sale almost right at market value.
Some bank owned homes will not meet funding requirement for a loan. For example they may have broken windows, or other health, safety or code violation issues.
Remember, bank owned homes sale like a silent auction. Be mindful to make your best and final offer out the gate. REO agents do not counter all offers, in most cases they select the best a highest offer and hold the others as back up offers.
Last, be patient. It may take several attempts before you get an offer accepted.
Best of luck to you!!!
Kawain Payne, Realtor