Best of luck to you.
As Roland rightly pointed out, there're three stages of the foreclosing process:
1. Pre-foreclosure (Short Sale): because most likely it's still owner-occupied, showings are often by appointment only. Some owners may not even cooperate, and you never get a chance to see it. The short sale process is indeed very loooong! Depending on the hardship current owner is going through, their short sale filing needs to be agreed & approved by the bank, 60-90 days of wait is quite normal, so you just have to be patiently awaiting and hope the bank approve your offer price & terms. Even worse yet, if two banks are involved (i.e. first loan and secondary), they it could easily double the wait time.
2. If the property fails to sell during short sale, then goes to public auction (usually announced ahead on local media such as SJ Mercury, Los Gatos Weekly, etc). If you win, you must pay all cash.
3. If still doesn't sell, then bank foreclose upon and takes over as REO (real estate owned), from this point on, it's very much like a regular sale: you don't have to wait for approval any more, if your offer gets accepted by bank's authorized asset management, you enter escrow and close just like a regular transaction. You can still have your inspection contingency, loan contingency, etc. And you can get pretty good deals this way. The major disadvantage to you as a buyer is: REO has very limited disclosure other than some basic geo-reports, because remember, bank just took over, they didn't know much about what happened on this property in past years, right? So hiring an experienced inspector is crucial, check it out top-down and inside-out!
You may easily search for REO/Short Sales on our website:
Feel free to contact me if I could be any help, good luck :)
When the homeowner cannot make the monthly payment. The lender placed a notice of default.
The home owner could hire a realtor to sell the home. a lot of them it is a short sale case due to the homeowner owes more money then he can sell it. The realtor can nogiate with the lender(s) to get the offer accepted. If this process is agreed with the lender. The lender can auction it or place it as a bank owner property and lender or asset manager will hire a RE agent to sell it as a bank own property.
You as a buyer can hire a RE agent to buy it. Last two offers I know were all sold for over asking with 38 and 46 offers.
Certified Residental Specialist
What you really are looking for are Bank Owned properties. These have already forclosed and are at the last step. You get some of the best deals with the least risk this way. If you would like a search for bank owned properties drop me an email with what you are looking for and where. I will set it for you so you can see whats available and go from there. This is all done for FREE!!!