Carolyn, Home Buyer in Akron, OH

how do you find pre-foreclosure without paying a fee?

Asked by Carolyn, Akron, OH Tue Apr 14, 2009

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6
Hmmn . . . Both the Stark and Summit County Recorder's offices are on line and do have the data of which sellers are facing foreclosure due to delinquency. But from a buyer's perspective that info is not very useful since the properties are NOT available for sale unless they are on the Sheriff's docket to be auctioned, and the vast majority of properties scheduled for auction - I'd say comfortably over 90% from my actual experience of attending these auctions - will never transfer ownership at the sale except to the foreclosing lender because WAY TOO MUCH MONEY is owed on them at the price the lender demands. FYI, the lender's bid will likely be full price of what is owed including all back payments and penalties, plus the lender's legal costs, else he will take the property back himself (which is what almost always happens). And about 1/3 of the scheduled properties for sale are pulled from the sale due to last minute legal filings such as bankruptcy filings of the borrower (hey, that way they get to stay in their home for many more months for free!) or legal errors and omissions discovered that prevent the sale from proceeding. Too many late-night TV get-rich-quick programs have sent people to the sheriff's sales in hopes of finding "the deal of a lifetime". It's actually pretty funny to see all the commotion at the sale - you can tell when one of the "real estate TV guru's" has just aired a show by the number of people who crowd the courthouse lobby at the next sheriff's auction. My suggestion again is to find a good Realtor who'll provide you listings of properties that are ACTUALLY FOR SALE and of which the foreclosing lenders have become realistic with their pricing to get these "non-performing assets" off their books. If your Realtor shows you from public records what price a foreclosing lender "bought" the property back for at sheriff's sale compared to the current asking price, you'll immediately see why it would have been a waste of time for you to have attended the sale the day the lender took the property back. In our local market it's not unusual to have a property sell through Realtors to homebuyers for 50% or less of what the lender's bid was at sheriff's sale. Good luck!
Web Reference: http://www.soldbydon.com
1 vote Thank Flag Link Wed Apr 15, 2009
Good question! Almost all foreclosed properties are listed with Realtors and you'll find them on my website (various buttons on the left side of the home page) . What you see advertised on the web is often from foreclosure auction houses or data aggregators who make lotsa money from naive consumers who pay them fees to get the data that is free from Realtors. And the bulk of the listings on foreclosure sites are 1) already sold 2) not ready to be sold yet or 3) never going to be sold for various legal reasons, such as the current owner giving a quitclaim deed and the house keys back to their lender to avoid foreclosure. In most cases all those sites do is ultimately steer you to a local Realtor to get the correct, updated info. Your best bet is to avoid those sites and have a good Realtor provide you real listings for free. If you work with me, and I supply your the listings, so long as the seller permits it, I will rebate 25% of my commission back to you on any purchase. Many of the listings headed for auction have been on the Realtor's MLS database for months and they are still available, possibly without paying the 5% "Buyer's Premium" that auction houses charge you above your bid. For example I showed a repo to a buyer today that he can buy today without the buyer's premium - but if he bids online and does not know this, he'll be subject to the auction house's premium. Pick a good Realtor and you'll learn lots.
Web Reference: http://www.soldbydon.com
1 vote Thank Flag Link Tue Apr 14, 2009
Now, now. Carolyn asked about Pre-Foreclosures; I'm sure she knows the property is not technically for sale and may NEVER be for sale if the borrower is able to get loan modification or bring their payments current.

Carolyn, the following website is from HUD. It has links to homes for sale by the U.S. Marshals, the IRS, and others. Many of these properties come with hazards and liens attached, so I do highly recommend working with an Agent if you plan on purchasing one of these.

When a home has finished the foreclosure process and is actually owned by the bank, it is typically listed on the MLS and any Realtor (or Realtor.com) can provide those.

An informed buyer is a wise buyer.
0 votes Thank Flag Link Wed Apr 15, 2009
Go to your County Recorders Office, or online if they are online. Default Notices are recorded in the County where the home is located and are public record. This will tell you who has gotten behind on their mortgage and is in the first steps to being foreclosed upon.

Good Luck!
0 votes Thank Flag Link Wed Apr 15, 2009
I am in agreement with Art, ask a realtor. We all have the ability to compile a list of homes for you, and like Art said short sales are basically preforeclosures..
Web Reference: http://www.dianecard.com
0 votes Thank Flag Link Tue Apr 14, 2009
Ask a REALTOR. Short Sales are very common in the MLS these days (unfortunately)!

Art Hotes ~ RE/MAX Classic
Web Reference: http://ArtHotes.com
0 votes Thank Flag Link Tue Apr 14, 2009
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