The most important factor for you to understand is that no one sells properties for less than they are worth, neither the upside down owner nor the bank will under sell. Why should they especially for San Francisco property.
So that house will not sell for $320,000. That is the amount of the loan that is in arrears. There could be more loans. That one could be a second or a home equity loan and not even be the primary loan on the property. If you want to buy a 1,600 SF house in the Sunset be prepared to pay over $800,000 even if it is in poor condition.
My colleagues are correct when they advise you not to believe anything on RealtyTrac. $320,000 is NOT the price, but the amount owed on a mortgage (there could be more than one).
Very few places with NOD's go to foreclosure right away. The seller can delay things for a long time, bring the loan current, etc.
IF this home were to go to "the courthouse" steps, it would be bought by an investor who not only does this for a living but who would likely be paying cash.
Bottom line, IGNORE RealtyTrac (I wasted money with them too and hate their mis-leading advertizing). Get with an agent who can counsel you about short sales and search specifically for pre-foreclosures for you.
Oggi Kashi - 415.690.3792 direct
Broker Associate, Paragon Real Estate Group CA DRE 01844627
All data from sources deemed reliable but subject to errors and omissions, and not warranted.
This property is not for sale. It is an ad from a company for you to pay them money to get information that is publicly accessible. Just because a person misses a payment or two does not result in a property being for sale.
Find a Realtor who works in the area that you want to buy in and get educated about the process. I always remind people," If it is too good to be true, you can bet it is".