Dconstancef, Home Buyer in Westlake Village, CA

this property is a pre-forclosure at $250,000.00. However that price is ridiculously low for the area it is in. This house is priced at 1.6 million.

Asked by Dconstancef, Westlake Village, CA Fri Apr 20, 2012

Please explain the 250k loan amount on a pre-foreclosure home worth 1.6 million. Thank you.

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This question is about this property: http://www.trulia.com/foreclosure/3080466211--Wild-Sage-Ct-W…

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7
Yes, this is a pre-foreclosure notice of default. The owner has up to 120 days to cure their default. It will not be availabe to purchase at this price as you indicated. Do you need lisings that are available to be emailed to you? Do you have down payment and closing costs saved and a pre-aproval. You will need a pre-approval letter to be able to look at and submit offers on homes of your choice.

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0 votes Thank Flag Link Thu Jan 31, 2013
It would be a blessing if Trulia would stop allowing Realty Trac and any other default announcement service stop putting properties on this site. It's a nuisance.
0 votes Thank Flag Link Sun Apr 22, 2012
Each person inquiring on ANY property including Realty Trac is a possible client to us agents and loan officers. Trulia is a lead generating service and if there was not Realty Trac etc. there would be a lot less inquiries of potential homebuyers available to us. Would you be calling people that are calling on your listings signs that the property sold the first week a nuisance for them to be calling since it is sold? I think not, you need to say something to the inquiring home buyer to be able to assist them in ANOTHER possible property that IS available. Good luck to you.
Flag Thu Jan 31, 2013
It's been a while since we have got one of these questions and I should have this answer saved so I can just cut and paste every time it is asked, so here it goes.

Trulia displays property data from RealtyTrac. RealtyTrac is data mining company. They mine data from the public records. The RealtyTrac data contains homes in the foreclosure process. The amount you see associated with any of these properties is the default amount on the loan. That amount is not a sales price.

So the general public looking at properties on Trulia, encounter a RealtyTrac property react like they hit the pick six in the megalotto.

Tulia and RealtyTrac are not the "MLS", they are not Brokers and they do not have access to "MLS" The properties Trulia displays is at the pleasure of the few broker who submit their data to Trulia. In other words - Trulia does have all the houses listed for sale.
0 votes Thank Flag Link Sat Apr 21, 2012
The $250,000 figure listed would represent the amount of the outstanding loan on the house. A Notice of Default is reported as having been filed by the lender. A Notice of Default is a notification given to a borrower stating that he or she has not made their payments by the predetermined deadline, or is otherwise in default on the mortgage contract. The house is listed as being in pre-foreclosure. Reaching pre-foreclosure status begins when the lender files a Notice of Default on the property, which informs the property owner that the lender will proceed with pursuing legal action if the debt is not taken care of. At this point, the property owner has the opportunity to pay off the outstanding debt or sell the property before it is foreclosed. The $250,000 figure does not represent a listing price or an amount that would be acceptable to the property owner/borrower or the lender. It is simply the amount reported as the outstanding loan. If the house were listed for sale (the Multiple Listing Service does not currently show it for sale), it would probably sell for its market value. Please let us know if you have further questions or you would like us to find the right home for you. Thank you! John & Marena Murray Rodeo Realty (805) 288-7550
0 votes Thank Flag Link Fri Apr 20, 2012
It's possible to be behind or delinquent or in default with any loan. Property value and loan balances are not relevant to the mortgage holder. As you are aware, this home is not likely to be sold for only a quarter million dollars.
0 votes Thank Flag Link Fri Apr 20, 2012
It simply means that a loan on the property has an outstanding balance of $250,000. It doesn't mean the value of the property is $250,000. This property is in pre-foreclosure which means it has been sent a notice of default.

There are a number of situations where the sellers can amend the defaulted loan: pay it off, short sell, etc. If not, it will go to auction and most likely get a bid for fair market value ($1M+). If it doesn't get auctioned, the bank can foreclose the property. If the bank takes ownership of the property, they can sell it themselves, again for fair market value.
0 votes Thank Flag Link Fri Apr 20, 2012
Pr-foreclosure is misleading. These should not be included on any site as a house for sale. Preforeclosure means that a notice of default has been filed. The large majority of these homes are never sold but worked out one way or the other. The amount is also extremely misleading as that is the amount that is owed to the the defaulted lender. There could be a senior lean that would have to be satisfied first or the house will go to an auction in which case the price will be bid up to closer to the true market value. Best advice....pay no attention to pre-foreclosures unless you are a hard core investor.
0 votes Thank Flag Link Fri Apr 20, 2012
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