Typically if an owner wants to sell and is in this position they request that their lender approve a short sale whereby the lender agrees to accept less than what is actually owed. Not all short sales are guaranteed and borrowers are required to demonstrate hardship. They are also required to list the property on the open market with a realtor to ensure the property receives proper exposure and generates the highest offers. A homeowner is unable to request a short sale unless the property is listed. (They can apply for other relief such as loan modification however if they wish to stay in the house.)
Not sure if it's the same property but there was a short sale on that street that was on the market last year. The listing was withdrawn and best I can tell it did not close. By the way, the home I'm speaking of was not waterfront property... the photo from RealtyTrac shows waterfront. There are some waterfront properties on that street but none of the other properties have any indication of the pre-foreclosure process having begun.
I hope that helps. My office is nearby if I can be of further assistance.
Broker - Owner
Resources Real Estate
How's everything going? Best thing is to put an offer on the property. If the owner and bank accepts it, the process of buying the home will begin. If you would want I could help you. Just let me know. Thanks.
Peter G. Apicella
Prudential Zack Shore Properties
520 Washington Blvd.
Sea Girt, NJ 08750
Realty Trac posts "listings" on Trulia that have been served pre-foreclosure notices by pulling them from open public records. Then they make you sign up (eventually for a fee) to get info on houses that may or may not EVER be for sale.
Even the "listing says " The borrower/homeowner still has the opportunity to stop the foreclosure by catching up on defaulted payments or paying off the entire loan balance usually by refinancing or selling the property".
Pre-foreclosure just means they are behind on their mortgages. If it went to foreclosure, the only way to buy the house is through a sheriff sale. That's a whole other ball of wax with specific guidelines as to how to "bid" on the property depending on the county the property is in.
If you are looking for a home, best to contact a real estate agent in the area you want and look at houses that are for sale now.