What does it mean when a house is in foreclosure? Is it available for purchase?

Asked by mayraarellano09, Riverside, CA Sun Sep 15, 2013

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9
Tarahayley, Both Buyer And Seller, Providence, UT
Tue Feb 9, 2016
When people do not have the money to pay their mortgage they do not have the money to maintain the property, fix leaks in the roof and the plumbing.

Water damage and dry rot in foreclosed properties if often substantial.

Often during the foreclosure process the former owners became hostile and did a considerable amount of damage.

Also, any remodeling the former owners did such as new kitchen cabinets and appliances and batroom remodeling is often removed down to the bare studs in the wall and the subfloor. The former owners see the remodeling as their property not the lender's.

The cost of the repairs just to make the house habitable can be rather substantial.

Here are the five stages of foreclosure: http://foreclosureprocess.net/foreclosures
Stage 1: Missed payments
Stage 2: Public notice
Stage 3: Pre-foreclosure
Stage 4: Auction
Stage 4: Auction
4 votes
This honestly varies a great deal. My house was foreclosed and we purchased it from the bank. There were several minor issues but on the whole, it was honestly a great value. On the flip side, I just looked at another one that doesn't have any obvious structural issues but cosmetically, it's such a wreck thanks to the weekend warrior DIYer who did such a poor job on major projects that the owning bank is only willing to entertain cash offers .
Flag Wed Feb 10, 2016
Terry McCarl…, Agent, Cape Coral, FL
Mon Sep 16, 2013
If a home is in foreclosure it can't be purchased unless the sellers list it as a short sale. The bank can't sell the property themselves until that have gone thru the foreclosure process and taken the property back.
1 vote
Scott Godzyk, Agent, Manchester, NH
Wed Feb 10, 2016
When a home enters the foreclosure process most likely it can not be purchased until the foreclosure is final because the seller may owe more than the home is worth and or there is not enough time to complete a short sale
0 votes
Tatumlea, Home Buyer, Sebastopol, CA
Fri Aug 21, 2015
Foreclosure is the process the bank uses to convert the ownership of a property to someone or something else (like the bank) after the mortgage holder defaults on the loan agreement they made. The process ends with an auction on courthouse steps where the bank often buys back the property and they then own it and therefore can not sell it themselves. Until this point they don't own it so they can't sell it to get their money back, or some of it anyway. At the end of the process it is no longer called a foreclosure but is now owned by someone or it can be bank owned and called a REO property.
http://ForeclosureIQ.com
0 votes
Ritchy Haynes, , Denver, CO
Tue Oct 22, 2013
It may be available for purchase but may need to wait for foreclosure to be complete. Simply put it is when the lender is in the process of taking over the home from an occupant who feel past due and defaulted on their note.
0 votes
michellelong…, , Corona, CA
Tue Oct 22, 2013
This would be a great question to ask your local Real Estate agent.
0 votes
JR Thrasher, Agent, San Diego, CA
Wed Sep 18, 2013
I just wrote a blog about finding foreclosure for sale on Trulia, it should answer all of your questions. I'll put a link to it in the web reference below,

J.R. Thrasher
http://www.SanDiegoRealEstateVeterans.com
619-929-0105
0 votes
Alexander Gr…, Agent, San Jose, CA
Mon Sep 16, 2013
Looks like you got a really good answer below.

Let me know if you need a purchase loan for the property or want to get pre-approved (this will increase the chances of your loan being accepted) because I can certainly help you out there. You can call me at 408-352-5147 or email me at AGreer@themortgageoutlet.com. You can check us out at http://www.TheMortgageOutlet.com. I will look at your situation and present you with some options.

Alex Greer
NMLS #1056079
0 votes
Patricia Pal…, , Riverside County, CA
Sun Sep 15, 2013
Maybe! When a house is in foreclosure it simply means the owner is not making the house payments and the bank is exercising its right to take ownership. Until the foreclosure is final, the bank cannot sell it or force the current owners to sell it. In most cases in today's market, the home is not worth the amount of money owed on it. If the owner wants to sell he/she/they must ask the bank to take less than the balance owed. That is commonly known as a Short Sale.
0 votes
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