Home Buying in 90028>Question Details

chucknoblet, Home Buyer in Los Angeles, CA

I was looking at a pre-foreclosure listed on trulia. It says it has a (loan amount of $108,000). What does that mean and what is the process?

Asked by chucknoblet, Los Angeles, CA Tue Sep 4, 2012

Can I get a bank loan or do I have to have that amount in cash?

Help the community by answering this question:


I don't understand why Trulia posts preforeclosure information like this as it only means a notice of default has been filed, NOT that the house can be purchased for that amount. It is truly misleading. The property is typically not for sale at this point unless the owner has listed the property as a short sale with a Realtor.

If the owner does not bring the loan current or sell the property as a short sale, it will be foreclosed on by the bank holding the loan. At that point you could attempt to purchase the property at the trustee sale (auction) which would require all cash.

If you buy a house that is listed as a short sale or bank owned, you may typically finance the purchase depending on the condition of the property. Please contact me if you would like a more in depth explanation.
0 votes Thank Flag Link Mon Dec 3, 2012
This means that this particular loan for $108,000 is in default. This could be one of two or three loans on the property, or it can be the only loan on the property. If it is the only loan, chances are the homeowner fell behind on their payments on this one loan--but that homeowner can do a regular sale to pay it off and recover whatever equity he has in the property and move on. If this is a second or third loan on the property, and the house is worth less then the balance of these loans put together, then the seller will need to do a short sale to sell the home or simply let the bank foreclose. At any rate, with this notice of default, he will definitely have some agents calling him and knocking on his door to try to help him out with short sale or regular sale options. He might also have individuals like yourself knocking on the door offering to buy it from him without agent involvement. If you were trying to purchase this property or any other property in a similar situation, and did get a purchase agreement with the owner, then you could certainly get a mortgage loan to complete the purchase, unless the house is in such terrible condition that it doesn't qualify for mortgage loan, in which case you would need to pay cash for it.
0 votes Thank Flag Link Thu Sep 13, 2012
a pre-foreclosure is just a home that has received a notice, the fact that you have a loan amount owed and not a list price means that the home is not likely listed for sale. The seller has to want to sell the home and then process it as a short sale, if it is. If there is equity then you will likely pay retail.
There are hundreds of other possibilities.
0 votes Thank Flag Link Tue Sep 4, 2012
It is likely that the property has more than 1 loan against it and the one you are seeing that is in default s for $108,000. I say this as there are not alot of $100,000 homes in Los Angeles. What area are you living in? If you would like help with a specific property, please contact me directly.
0 votes Thank Flag Link Tue Sep 4, 2012
Im not exactly sure because I do not have all the details but I'm assuming that it means that the current balance that is owed on the property is $108,000. If it is a pre-foreclosure than this property can be purchased in a number of different ways. The most widely known way is a short sale. You can google short sale process and I'm sure you will find a wealth of info.
0 votes Thank Flag Link Tue Sep 4, 2012
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