Terrence is dead-on right about the misleading sale prices, and the reasons for them, that come from RealtyTrac and other such sites. The amount stated ($1756) is likely the debt or lien on the property that started the sheriff's sale process; and this "price" is never the asking price. In this particular case, the bank assumed ownership of the home in November and the bank will probably list it for sale through a real estate broker in the next few months. The remaining debt on the property is close to one million dollars, so the bank will list it for as close to that as possible, with the hope of cutting their losses. Also, there is currently a smaller home on Anvil listed for about $850,000, so it will be listed for more than that for sure.
Good luck with your search!
Weichert Realtors - Fort Washington
Unfortunately, the numbers that Trulia has in the asking price field for properties pulled from Reatytrac including the one you asked about are often meaningless and have no bearing on proposed or actual sales price. Trulia boards have several similar inquiries each week. It's safe to say that a 9,000 square foot home will fetch more than $1,700.
Your best bet is to contact an agent, detail what type of home you are looking for and see if any REO's fit your profile.
The foreclosure process is quite lengthy and starts when the borrower defaults on the loan. The following steps are included but are probably not all of the steps in the process after the borrower defaults.
- The lender petitions the court to sell the property.
- Borrower notified, has chance to catch up on payments, fees, remaining balance of loan.
- Borrower can't pay, home is slated for sheriff sale.
- Borrower can petition the court to stay the sale.
- If the sale goes on, potential buyers bid for property.
- If the property is sold at sale, sheriff evicts squatters (prior borrowers).
- If the property is not sold, the bank â€œbuysâ€ the property back.
- Bank puts the property on the market through a broker.
- For lenders who have VA or FHA backed home loans, they give the property to those agencies recovering the funds and those agencies either list with a broker or post those properties on their own web sites.
Now, even before this happens, the borrower sometimes lists the property (with the lender's approval) as a short sale (the price of the home is less than what is owed).
Moral: Get a real estate agent to help you out. They can show you properties which are either in foreclosure or will be a short sale. They can also assist you with properties which are slated for sheriff sale to see if they would be profitable.
Hope that helps,
Terrence Charest, e-Pro