Realistically, how long are we talking about when dealing with foreclosures in Saratoga?

Asked by Erinkayshaw, Thu Jun 14, 2012

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12
Earl & Liz W…, Agent, Saratoga, CA
Sat Aug 4, 2012
It all depends on the particular lender, the home, the currrent market in that price range, the location.
The most important factor will be the attitude of the specific lender and how many they are processing at the time.
0 votes
Earl & Liz W…, Agent, Saratoga, CA
Sat Aug 4, 2012
It all depends on the particular lender, the home, the currrent market in that price range, the location.
The most important factor will be the attitude of the specific lender and how many they are processing at the time.
0 votes
Korn12, Home Buyer, harrison michgani
Fri Jun 22, 2012
hoe long does it take to buy a foeclose house
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Terri Vellios, Agent, Campbell, CA
Fri Jun 15, 2012
Erinkayshaw,

Let me clarify the states of a distressed home. I'm going to be very brief so I'll leave out the finer details.

1) The Home Owner is behind on their payments to their Mortgage Company this is the pre-foreclosure. The Home Owner can bring this current and the home will be removed from pre-foreclosure state. The amount reported prior to bringing current is the mortgage payments, plus late fees, penalties, etc. Not what is owed on the home. The amount late may be a small as one payment, or simply a property tax. The House may not even be on the market for sale and the home owner may not be interested in selling

2) Short Sale. This is where the home owner owes more to their lender than what a buyer will pay. It most likely will be on the Real Estate Multiple Listing Service (MLS) listed for sale. The amount listed is a starting point. The Home Owner's Lender will determine what they are willing to let it be sold for. If the market of similar homes are selling for less a buyer can offer less and the agents will need to "sell" the home owners lender on the value. If the house is listed under market value and the Seller's lender is aware of this, they are going to want more money than the offer submitted. A short sale can take 2 to 6 months for approval.

3) Foreclosure is when the Home Owner's lender has taken the property back. The house will be sold at the public auction for cash. The buyer assumes any and all issues with the home, other liens, title issues, repairs. This is not for an uneducated buyer.

4) As a person you can always write an offer on any home you want. Regardless if it is on the market or not. I recommend you have an agent represent you as a Buyer agent. The Home Owner doesn't have to accept your offer or they may. It's up to you.

Have an amazing day!
Web Reference:  http://www.terrivellios.com
0 votes
Clarence Mad…, Agent, Saratoga, CA
Fri Jun 15, 2012
Prior to the property being auction on the court house steps through a foreclosure process, the owner(s) on title still have legal control of the property. If the property's value is below what the owner owes, the transaction should be treated as a short sale. The property that you are interested in your offer needs to cover the loan plus any possible closing cost the seller would have to pay in order to avoid a short sale process. This would not be a problem unless you plan to get financing.

When the property is put up on auction at the court house steps the process is different. In the event the property is not sold through the auction, the bank who holds the loan takes ownership. The foreclosure process can take about 3 months upon the bank filing a Notice of Default with the county.

When the bank does take over the property, bank can decide at anytime to put the property up for sale. This can be very short time period or it can further down the road.

Clarence Madrilejos
Century 21 M&M and Associatates
408-366-6262
clarence@c21mm.com
cmfinehomes.com
dre# 01806386
0 votes
Erinkayshaw, Home Buyer,
Thu Jun 14, 2012
Hello, I am confused on the foreclosure stages and when the public is able to make an offer? If a home that I think might be great for our family is in Pre-Forclosure and has a price attached to it, can we offer that price or above at this stage? i am aware that this is the price that the owner still owes on the house.
0 votes
Erinkayshaw, Home Buyer,
Thu Jun 14, 2012
Thanks for all of the great advise. I am still confused on the foreclosure stages and when the public is able to make an offer? If a home that I think might be great for our family is in Pre-Forclosure and has a price attached to it, can we offer that price or above at this stage? i am aware that this is the price that the owner still owes on the house.
0 votes
John Souerbry, Agent, Fairfield, CA
Thu Jun 14, 2012
I agree with Tim, you won't get responses from lenders/sellers on weekends, though everything else is about the same as a normal sale. In most cases (though not all), the property will be listed with a local broker who should be available to receive offers 7 days a week, hold weekend open houses, etc. and process a transaction the same as any other.
An exception would be foreclosed homes owned by the FHA or other government agency. A growing number of these homes don't appear in the MLS and the government department handling these sales usually take a longer time than lenders to respond to offers.
To estimate some numbers, it usually takes 2 to 3 days for a lender to respond to an offer and about 5 to 6 days for a government agency to respond. With regard to the length of escrow involved in a foreclose sale, that's usually still up to the buyer or buyer's lender.
As of this morning, out of 145 homes for sale or in escrow in Saratoga there are no foreclosures on the MLS.
0 votes
Stu Carson, Agent, San Jose, CA
Thu Jun 14, 2012
Please clarify your question "dealing with foreclosures". Do you mean, how long from 1st non-payment until the bank sends the home to auction? or do you mean once the home has become bank owned (at auction) how long until it's on the market as an REO, bank owned property for sale? or do you mean if you make an offer on an REO, how long until the bank will respond to your offer?

If you would prefer to clarify in person, call me.

Stu Carson
408-209-0849
http://www.JustMyProperties.com
http://www.GetRealRealtor.com
Stu@StuCarson.com
0 votes
Norman Aless…, Agent, San Jose, CA
Thu Jun 14, 2012
Well to be realistic short sales are moving a bit faster, but the speed depends on how fast the bank is, how many loans on the property, how good is the listing agent in getting the seller to give the bank the correct documents, so I'd say from 2-4 months. If we are talking bank owned property then it is the same as a regular sale. Please feel free to contact me with any questions.
At your service,
Allyson
408-705-6578
allyson@homesbyallyson.com
Certified Distressed Property Expert
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Thu Jun 14, 2012
If it truely was foreclosed and is now a bank owned property and it has been listed for sale on the MLS there then it should not be a longer than normal process. Bank owned homes (those that have been foreclosed) don't take long periods of time other than a bank will not work on weekends so Saturday and Sundays do not exist to them.

If you are talking about a short sale then that is not a foreclosure at all and they can take a longggggg time if they even close at all. Sometimes the bank decides to not accept a short sale and they move to put it into foreclosure.
0 votes
Cindy Davis, Agent, San Diego, CA
Thu Jun 14, 2012
Realistically, the average short sale sells in the 3 - 6 month time frame. There are outliers and I've seen some taking a year or more...but 3 - 6 months is a good starting point.
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