1) 1st and/or 2nd mortgage file a Lis Pendens at courthouse (that's where RealtyTrac get this $44 price)
2) If owners don't fight the lawsuit it will then get a final judgement and get auctioned at the courthouse to an ALL CASH buyer. Normally the "final judgement" amount is well over market value so it will go back to the lender. If the lender allows a below market sell for less than the final judgement then it will sell to the highest cash investor. That buyer will not get a clear title (or title insurance) and cannot cancel and cannot inspect for serious defects. It's a gamble and if you have cash in your hands and are not risk averse this is the way you can get the best "bargain".
3) a) if a cash investor buys it then it may be rented out for a year to take advantage of the 15% max capital gains tax treatment (i.e. Romney's smart strategy). Or they may put lipstick on it and flip it for the highest price possible.
b) Alternatively if the lender doesn't offer it for below market at the courthouse it will come back to the
lender and depending on if there were "guarantees" it may get sent to Fannie Mae, Freddie Mac, HUD or the VA. Regardless all of these will come back on the market and available to the public --unless you have a multimillion dollar portfolio and buy the properties via the REO Initiaitive (fhfa.gov) .
4) Lastly the house will go up on the market listed by a local Realtor.
Additionally if the owner is "smart" they will hire a local Realtor (normally no cost to a Seller) and attempt to sell via a Short Sale. In this case the price that is set is "fiction" so don't count on being able to buy even at the full asking price. Many many cash investors are lining up to buy properties under $150k so if you don't have all cash then you may want to focus on properties that are reserved for OWNER OCCUPANTS for the first 2 weeks listed: http://www.HomePath.com http://www.HomeSteps.com http://www.HudHomestore.com
All the best,
Alma Rose Kee, PA
Future Home Realty
Like my other fellow agents said before, the house is not for sale.
The information you saw is only saying that the house is on default. They are suggesting a price, when the house is not even for sale.
Please let us know how can we help you. We can guide you every step of the process.
We can provide you real listing information and a list of available homes.
Trust an agent, as Realtors is our goal to server and protect our customers.
Signature Realty Associates.
What you are looking at is a notice of default. Trulia is litter with these type of listings. If the listing does not specifically say the property is for sale it is most likely not. RealtyTrac is trying to sell you information about the property and loan. All of that information can be found in the public records for free.
If you are serious about buying a home I would recommend contacting a local Realtor. Please feel free to call or email me with any questions.
Sales Associate / Property Manager
This will server you greatly and it will provide you with accurate information and market information that online information doesn't have. Good Luck with your home search!