Finding out more info about a foreclosed property in order to figure out if I can offer a lower price?

Asked by Jane Seymour, Tempe, AZ Fri Apr 16, 2010

I found a beautiful property but I'm not sure if it's foreclosed. The MLS reads, "Special Listing Condition: "Short Sale Aprvl Req" and "According to the listing agent, this listing may be a pre-foreclosure or short sale." What does that mean exactly? Also, here are the stats of the property: Prior to Mar 08, '10 $299,000 Mar 08, '10 - Mar 30, '10 $249,000 Mar 30, '10 - Apr 16, '10 $229,000 Apr 16, '10 - Today $209,000. Could I possibly get it for $150,000? Thank you for your help.

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Patrick Thies, Agent, Anytown, IL
Fri Apr 16, 2010
This property is most likely heading towards foreclosure but is not in nor has been foreclosed on at this time. Pre foreclosure or short sale and all the price reductions would indicate this.

At this point, you would be dealing with the current owner and then the owner will take any offers to the bank and ask the bank to approve the deal. Even if the seller accepts your $150,000 offer, the bank has final say.

Short sales can take 3 or more months to get approval.
1 vote
Keith Manson-…, , Milwaukee, WI
Wed Apr 28, 2010
What is interesting in this market is some buyers are trying to buy it for less and less. When the market was increasing it was a function of supply and demand and those same fundementals are in place. Now what is happening is as the price gets lower, at some point, the demand increases and starts increasing the price the property will sell.

The case you are talking about is a short sale, so the owner is underwater and owes more than the property will sell. The transaction is more than a real estate transaction which will require banks approval for both the mortgagor and making sure the property is selling for value. So if the value is too low the deal will not be approved and if the mortgagor does not meet their requirements, the deal will not be approved. If you are looking for a deal focus on other distressed properties where you can get a quick answer. The short sale you might have 2 -6 months before an answer know if your purchased a property or not.

Keith Manson
First Weber Group
Certified Distressed Property Expert
Metro Milwaukee
0 votes
Judy Hudek, Agent, Scottsdale, AZ
Mon Apr 26, 2010
As will all dealings with banks the answer is...It depends! It depends on how motivated the bank is, how many other homes are for sale in the area, how much is owed on the home, how active the asset manager is at the bank. It just depends. If you want to bargain shop then go for it and try and put that offer in. If you absolutely love the house and can't imagine living any place else then you will want to put in a reasonable offer that reflects the recent comps. Get a good agent, do your homework, get pre-approved and then be patient. These deals can be long and frustrating so just be prepared.
0 votes
Lisa Kraft, , Chandler Heights, AZ
Wed Apr 21, 2010
It is possible to get it for $150,000. but just imagine how many others you will be competing with. The price gets lowered on a weekly basis if no better offers are coming in. You will be in a pool of buyers and it will take a while. Lisa
0 votes
Brian McMurr…, Agent, Tawas City, MI
Sat Apr 17, 2010
You have to make the offer to find out. First you need to get the Owner/Seller to accept the offer. If they do then the Bank would need to accept if it's a Short Sale. It's unlikely the Bank will want to get the property back and at the same time they will try to maximize what the are willing to settle for. Good luck.
0 votes
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