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?

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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
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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