2. The short answer....no. The disturbing trend right now is for listing agents to list short sales at prices everyone, other than other agents and educated consumers, know the bank , in all likelihood, will not accept. This is done in order to drum up business. What the perpetrators of this activity do not seem to get is that they will get many calls, calls for people looking for a 3bd house for 50k. They don't have one, no one has one in CA and the lead they generated does more ham to them than good. As for the owners of those properties....many feel that the agent is doing them some sort of service and really feel that they will help them. Truth is, most know that they cant help them, lead their client on for as long as they can to try and get additional business, and leave the client worse off than when they started.
If you are truly looking for a home, contact an agent LOCAL to the area to intend on purchasing in and have them assist you in locating a property that meets your needs. DO NOT do business with an agent like the one who has the 49k 2,000sf property. If they are treating the current owner of a property listed as simply chum then, they will treat you no better. This is a strange time for all involved in real estate and, more than ever, you need to be cautious, educated, and have professional representation.
The Foreclosure process starts when a homeowner cannot pay the mortgage and ends when the home is resold.
The three stages of Foreclosure are: Pre-Foreclosure, Auction, and REO/Bank Owned.
Pre-Foreclosure is the time period a homeowner has to repay the delinquent amount of the mortgage.
If a homeowner does not pay the mortgage the home is auctioned
If the bids do not meet the reserve the lien holder (bank) reclaims the property and it becomes a Bank Owned REO.