Is the forclosure price on the site the sale price?

Asked by Farzaneh, Los Angeles, CA Mon Jul 7, 2008

Hi,
When I look at some forclosure listings, and their prices. They seem too good to be true.
For example some homes in my neighborhood are going for at least $600k but in the forclosure listings their neighbors are listed for $80k.
Why is that. Can I really buy that home for $80k or is there a whole process I am missing?

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3
Deborah Madey, Agent, Brick, NJ
Mon Jul 7, 2008
The price may reflect the past due mortgage amount, or the total loan amount. When you find a listing on a foreclsoure site, it may not even be for sale. Many foreclosure sites collect public data about properties that are involved in a legal action. That's where they get the $$ figure.

Because a property is the subject of a legal action does not mean it is for sale. However, if a homeowner is challenged to make the payments, selling might be a solution and considered option.

If you approach the property owner, be aware that many are concurrently approaching...all offering their version of a solution for this property owner. An agent can approach the property owner on your behalf.

Deborah
0 votes
The Hagley G…, Agent, Pleasanton, CA
Mon Jul 7, 2008
I underprice short sale listings to generate multiple offers, and ultimately a higher selling price.The lenders still have to approve the short sale price....and they often counter with a higher price.
0 votes
Glenn, , Central Business District, Newark, NJ
Mon Jul 7, 2008
Generally speaking, foreclosure is a public, bidding process. You can bid whatever you wish starting with the minimum bid, but others can and will bid as well. The sale price will be the amount of the highest bid. Remember there are a lot of other factors involved in foreclosures - you will probably not be able to see the inside of the home, there could be other title issues, and many traps for the inexperienced and furthermore, there are differences from state to state, including the right of the original homeowner to "redeem" their property for as much as a year after the foreclosure sale - meaning all that you went through could be for nothing. It's a good idea to check into all of the local nuances of foreclosures before bidding. Perhaps attend some foreclosure sales to observe before jumping in yourself. Good luck to you.
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