I contacted the official source of information about a house which is announced pre-foreclosure on Realty Trac, both the bank(lenders) and trustees

Asked by Nadine, Derwood, MD Tue Nov 17, 2009

stated that house is not for sale, not longer in pre-foreclosure, loan has been cured. Yet Trulia/Realty Trac keeps advertising it. Isn't that misrepresentation, or shouldn't your services be more accurate or up to date, that's misleading and needless to say I didn't want to be in the homeowners' shoes. I felt really bad for them, they had no idea! How can that happen? How long does it take you guys to update your ads? Nadine

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Amy & Dan Sc…, Agent, cleveland, OH
Wed Nov 18, 2009
Nadine, I have many clients who, like you, have seen information on a site like Realty Trac that turned out to be less than accurate and became frustrated. There are a lot of sites out there that advertise bank owned homes or will offer to sell special lists of foreclosed properties, but many of these lists are not accurate. The single best source to find current up to date information on bank owned homes or homes going through a short sale is your local MLS, multiple listing service. Find a reputable agent in your area who works the bank owned market and have them put you on an automated email system, alerting you whenever a new listing comes on the market. I would also ask that if an agent goes out of their way to bring these homes to your attention, that you highly consider using them as having representation is important. Good luck.
Web Reference:  http://www.schumanteam.com
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Keith Manson-…, , Milwaukee, WI
Wed Nov 18, 2009
There are lots of reasons why the information could be on realty trac or foreclosure.com or some other site that reports the data of loans in preforeclosure. The way realty trac gets the information is that the first legal foreclosure action is recorded in the court house and becomes a public record. Once the information is public, vendors download the information and make it available to companies like Realty Trac.

As long as the information is reported on the public record it will be reported on realty trac. So if the case is cured according to the bank or the owner the bank should recind the first legal from the public record. The reason why the first legal has not recinded can because the bank or attorney did not process it or court has a back log in recording the update or the vendor that supplies the data has not updated the information. The information on realty trac is only updated once a month.

How a loan is cured will effect the process too: it could be that the loan was reinstated, modification completed, property sold, short sale completed or a repayment that brought the loan within 60 days late (maybe depending on the lender).

As indicated in the previous response the only one that can sell the property prior to the foreclosure sale is the owner. If it is a short sale the owner is selling the property with the approval of the bank. Otherwise you either have to buy the property at foreclosure auction or from the bank as a Real estate owned property.

Realty trac is only a tool not a listing of properties for sale. The foreclosure process is a complicated process and you need someone who understands the data to assist you if you are looking for a home. Only 50% of the home owners that enter foreclosure work them selves out of foreclosure. So that means the people decide not to keep or sell their home.

Everyone has there own reasons why they do what they do!

Keith Manson
First Weber Group
Certified Distressed Property Expert
Metro Milwaukee
0 votes
Bruce Lemieux, Agent, Gaithersburg, MD
Wed Nov 18, 2009
Nadine, when a home owner gets behind on his mortgage payments, a bank may start foreclosure proceedings. This starts with a 'notice of default' and then later they can schedule it for a foreclosure auction. When these notices go out, sites like RealtyTrac will pickup them up and list the home on their web sites.

While this is going on, the home owner is often negotiating with the bank to keep their home. If they are able to make back payments, then the foreclosure auction will be stopped. Later, if they get behind again, they'll get another notice. If a homeowner can negotiate a loan modification, then that would stop the foreclosure process. This back and forth can go on for months... or longer. Because of this, none of these pre-foreclosure sites have complete, accurate and timely data.

Also, and more important, many home buyers think they can contact a bank for a pre-foreclosure and purchase a distress property. You cannot. The homeowner is still the owner and is the only party who can approve the transfer of title to another party. If the homeowner doesn't want to sell, you cannot buy it. Period. If he does want to sell, then you negotiate a contract with the homeowner, and then the bank must approve the contract as a short sale. Then, you go to closing and buy the property from the homeowner - not the bank.

There's three ways to find and buy a distress sale: 1. short-sales listed in the MLS, 2. buy at foreclosure auction, and 3. buy from the bank after they complete a foreclosure.

I hope that helps. Sites like RealtyTrac lead home buyers to believe there is a secret market to buy distress homes when there really isn't.
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