Are you working with an agent, or are you looking from a foreclosure list?
Sometimes when folks are faced with foreclosure, they hide from the world. It can be embarrassing and hurtful to deal with losing your home, your dreams, all the work and time that you have put into it. And usually foreclosure is just one piece of a sad period in someone's life. It often accompanies illness, accident, death, loss of work, or divorce.
In these cases many people just let the house go, because they simply can't deal with the decision-making on top of the emotional stress. Sometimes they leave the state and start over.
So, in many cases, it can be very hard to get in contact with the Sellers of a pre-foreclosure.
Did this help? Best wishes,
To clarify a few points below: A pre-foreclosure is not a short sale. A pre-foreclosure might turn into a short sale...it might turn into a foreclosure...or the owner might be able to make up back payments...the owner might be able to renegotiate the terms...or the owner might simply (if there's any equity) sell the property.
And the listing agent doesn't do a BPO. That's done by an agent hired by the lender to determine the value.
Finally, anyone who promises (or even strongly suggests) that he/she can successfully accomplish a short sale is...well, let's say optimistic. Yes, some short sales go through. But even with agents who know what they're doing, even with properly prepared packages, even with qualified buyers and legitimate hardship case sellers, short sales are not a sure thing.
Hope that helps.
A pre-foreclosed home is called a Short Sale. This process is handled the same as a normal Real Estate Transaction, except that the Listing Agent also has to "Negotiate" a Short Pay with the sellers lender. A Short Pay is when you are asking the Lender to allow the Sale of the house, for less money than is owed...including paying for all the Seller's fees Associated with this transaction.
A Short Sale isn't approved just because someone wants to get out of a bad investment. The seller must have recently suffered a financial hardship, must be late or not paying on their mortgage (typically in Foreclosure), and must not have the 'perceived' ability to repay that debt.
It is the Real Estate Agents job to 'pre-qualify' the seller. After qualifying the seller, the Agent would then do an 'internal BPO' (Broker's Price Opinion), and try to list the house appropriately, taking into consideration that the bank is also going to do their own BPO...and determine their own value. If the agent doesn't know how to do a BPO correctly, the house will be listed WRONG and not get approved. The bank typically would 'counter' with a higher figure. The Agent would need to be able to show the bank 'evidence' supporting the lower value. This would begin the 'negotiation process'. This is where most agents lose the battle.
In addition, there is a certain way to deal with the lender (seller's finance company). Lenders typically have multiple layers of 'screening' before you get to the 'decision maker'. If you don't know how to get to that person, you basically just spin your wheels submitting the documentation to people who say that they never received it...and make you re-send it 5-6 times. Ultimately, the file gets lost and just becomes one of the files in the HUGE stack of files sitting on the floor.
You basically got 1 shot to get the deal done. It's up to the listing agent to 'know' how to do this. If priced correctly, the house will sell itself.
You really need a mortgage negotiator on your side, one who is also a REALTORÂ®...who can list your home AND negotiate the deal. This is what a Short Sale Specialist is. An Agent who could represent YOU as the buyer, to help YOU complete your purchase. Or represent the 'seller', to negotiate with the lender to complete THEIR Short Sale.
I recently opened a company here in Orange County, just for people like you. We will help you find the house of your Dreams, submit and negotiate the deal, and get your transaction CLOSED.
Visit my website and check it out. Shoot me an email....I will help you.
I'm willing to have a few more doors slam in my face if you are serious about buying. Are you looking in Irvine or have you narrowed your search down to a specific neighborhood?