Sorry, it is that simple.
Per The Federal Trade Commission
Sec. 238.1 Bait advertisement.
No advertisement containing an offer to sell a product should be published when the offer is not a bona fide effort to sell the advertised product. [Guide 1]
RealtyTrac publishes some of the most misleading information on real estate web sites. These are NOT homes for sale. They are homes in various stages of foreclosure. The price they quote is what is owed on the loan. It is meaningless!
If you want to buy a home at a great price and you don't mind doing some fixing up, bank owned foreclosures are the way to go. There are plenty of them about but you have to move quickly. Please contact me if I can be of help to you.
These RealtyTrac postings are so misleading! This home is not offered for sale. The owner has failed to make timely mortgage payments and as a result the lender has filed a notice of default. This is simply the first step in the Foreclosure process.
The home may never come up for sale. The home owner can pay back the arrears and everything is back to normal
Just say No to RealtyTrac and focus on the real homes for sale.
Bernard Gibbons, DRE License # 01331583
J. Rockcliff Realtors, 15 Railroad Avenue, Danville, CA 94526
Phone (925) 997-1585 - email@example.com
TC - Its good you are getting educated about the way things really are. Unfortunately too many people fall for things that are too good to be true. I wish there was some way to clean up the mess. I guess the only way is to educate the masses on sites like this.
Good luck to you!
Just to clarify... I bought an REO and will buy another one in a year or so (not now!). Of course I'll use a realtor, like I did before. She didn't know much about REOs though, so I did a lot of the research myself.
As stated below â€¦
RealtyTrac is not a broker, they are an information provider like ForeclosureRadar.com. In their own words, â€œRealtyTrac (is) the nation's leading online foreclosure marketplace and the most trusted source of foreclosure information.â€
Therefore, what you are seeing on Trulia are not listings â€¦ they are advertisements for RealtyTrac.
What you typically see on Trulia is an alert by RealtyTrac for a Notice of Default (NOD) filed for a mortgage on a specific property. It can also be a foreclosure Notice of Sale for a trustee sale. RealtyTrac notices can seem very deceptive because they give the loan amounts, not the purchase price. In many cases, the loan you are seeing is a second loan with is substantially lower than the actual value of the property.
When any these particular properties actually hit the retail market, it will be at market price for the neighborhood.
BOTTOM LINE: RealtyTrac is trying to get you to sign up for their service.
Why does Trulia allow this? Because Trulia is a business and like all businesses needs revenue. RealtyTrac is a paying customer. Ironically, the revenue from RealtyTrac is part of what keeps this site alive â€“ last I heard, Trulia still is not turning a profit.
The following links may be helpful:
When Is The Price Not The Price?
Itâ€™s Too Good To Be True: REALLY â€“ Top 4 Buyer Myths
If you want to know when â€œREALâ€ listings actually hit the market, have a Realtor set you up with an auto-feed that will alert you the moment they become active on the MLS.
Simply put, RealtyTrac lists the amount which the owner is in default by. It is NOT the sales price, MOST of the time, the property is NOT even for sale as they put it on RealtyTrac soon as a Notice of Default is issued. Hope that helps. My suggestion you work with a knowledgable Realtor, since you are a buyer, you dont pay our fees and you get all the experience and knowledge for free. :)
All foreclosures on here are realtytrack listings. When you look at listings just remove the foreclosure check box on the left of the list of houses.
Better yet, go to realtor.com and have them set up an automated email for what you want. They are the closest thing a buyer can get to the same MLS a realtor uses.
Or find a realtor and have them send you the listings as they come in.
And that searching online can only serve to confuse.
If you want to see what's ACTIVELY offered for sale, the most realiable source is Realtor.com which is associatied with natiional MLS services, and will only feature homes that are for sale. If a property has an accepted offer (whether or not it's a short sale waiting for short sale lender approval) it will no longer show up as for sale.
AND,...if you are interested in buying property, please engage a realtor to help you. Your realtor will research the suitable (and available) properties and guide you through the buying process.
I usually describe RealtyTrack "listings" as inaccurate, incomplete, misleading, outdated, and just plain wrong. Most people use much harsher language.
Put at its most charitable, sometimes RealtyTrac will pick up the amount of the first mortgage, and that's what they'll "list" the place for. Sometimes, as I understand it, they'll simply pick up the past-due amounts. The numbers they present appear to have no relationship to the actual value of the property nor is based on any sort of calculations. Instead, there will be some number floating around--again, it might be the amount of one of the mortgages or it might be the amount of back payments--and that's what gets listed.
When someone posts a question about a price for a RealtyTrac property in the area I serve (Northern Virginia), I'll sometimes take a look to see if the property's even for sale. Usually it isn't. And when it is, the price never matches the value.
So, that's pretty much the explanation.
Hope that helps.