What is the real cost of this property with all the leins and loans that need to be paid.?

Asked by vincent.bonnie, Campbell, CA Thu Sep 13, 2012

This question is about this property: http://www.trulia.com/foreclosure/3082044275--Laura-Dr-San-J…

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The Medford…, Agent, Fremont, CA
Thu Sep 13, 2012
Guess what … if the listing has the logo for RealtyTrac ...

Then what you are seeing is NOT an actual listing … it is an advertisement for RealtyTrac.

RealtyTrac is a provider of data for distressed homes. This data is used by investors and Realtors to track distressed homes. When you see the RealtyTrac logo, you are not looking at a home that is actually available for you to buy: what you are seeing at is either (1) the notice of default for one of the mortgages on the property in question, (2) a notice of an impending trustee sale or (3) a notice of a completed trustee sale.

RealtyTrac notices can be very deceptive because they usually give loan amounts, not the purchase price or fair market value. When and if this particular property hits the market, it will be at market price for the neighborhood.

Bottom line: RealtyTrac is trying to get you to sign up for their service.

The following links may be helpful:

When Is The Price Not The Price?

It’s Too Good To Be True: REALLY – Top 4 Buyer Myths

If you want to know when these or similar properties will 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.
2 votes
Terri Vellios, Agent, Campbell, CA
Thu Sep 13, 2012
Kudos to Carl for bringing to the forefront that Realty Trac is an advertisement and it is totally misleading the general public.

I haven't visited the sight, but if it doesn't say in BOLD letters the disclaimers, then it should!!

Now if only we could get this information out to the hundreds of hopeful people who ask us each day about these 'foreclosures'.
Web Reference:  http://www.terrivellios.com
1 vote
Grace Hanamo…, Agent, Cupertino, CA
Thu Sep 13, 2012
Hi Vincent and thanks for your post.

To be frank, because this home is not actually listed for sale, the total of the indebtedness and liens will not be known without looking at the home's records and the recorded liens against the property. Although the mortgage amounts will be easy to find in the country records, other liens such as tax liens, utility liens, personal or private loans, and other costs will not be so easy to find.

The best thing to do is contact your trusted Realtor to help you learn more about this home. At this time, given the amount of the indebtedness $30,000, it's highly likely that the homeowner will pay the amount due rather than to lose the home in foreclosure, so you will definitely not be able to purchase this home for $30,000 or even $100,000.

Again, talk to your trusted Realtor to assist you.

Good luck!
Grace Morioka
1 vote
Gabriel Nguy…, , Campbell, CA
Thu Sep 13, 2012
No one knows. Why? It's a matter between home owner(s), buyer(s), lenders, agent(s).
Now, let say, if you are homeowner and would you like tell the whole world how much buyers/sellers has to pay for liens, loan fees paid? Probably not.

Have a wonderful day.

Gabriel Nguyen

1-STOP Realty Group
900 E. Hamilton Ave. #100
Campbell, CA 95008

408-426-1441 Direct
1 vote
charles butt…, Agent, san jose, CA
Thu Sep 13, 2012
Thank you for your question:

As the others have pointed out, that notice is merely a notice of default. That is not a listing of a house for sale.

Based on the small loan amount of $30,000 that is probably a lien in second or third position.

What you really need to know is what is the fair market value of the house, if the owner were to decide to sell the house.

The homeowner is fighting to save the home or any equity the homeowner has in the home. The homeowner will not sell the home for any less than fair market value. In this very competitive seller's market that we have, there is absolutely no reason for the homeowner to take any less than the full fair market value.

If the total amount of the liens against the home is more than fair market value, then we are looking at a short sale where the short sale lender agrees to accept less than the total of the loan amount.

However, the asset manager for the the short sale lender will not agree to accept any less than fair market value of the house. The job of the asset manager is to minimize the loss to the short sale lender.

We are currently in a seller's market here in the silicon Valley. Any property that is in even a marginal location will receive multiple offers and overbids for more than the recent comparable sales. the market is currently escalating at a very rapid pace.

There are far more very well qualified people who desperately want to buy homes here in the Silicon Valley, than there are homes for sale. That is particularly true for any home in the 95124 zip code, which is a very desirable area.

If the owner decides to sell the property, all the owner has to do is list the property for sale with a competent, experienced REALTOR. The REALTOR will have multiple offers and overbids for the seller within a matter of days.

There is absolutely no reason for the owner of the property to sell for anything less than fair market value.

The property in the link that you posted is on Laura Drive in the 95124 zip code.

That is a neighborhood that is in very high demand.

There is a particularly active seller's market in that neighborhood.

There are far more well qualified people who want to buy homes in that neighborhood than there are homes for sale in that neighborhood. If the owner of that property decides to place the house on the market, the owner can demand and will get fair market value with multiple offers and overbids within a matter of days.

You really need to select a REALTOR to represent your interests if you expect to have any chance at all of getting your offer to purchase a home even accepted in this runaway seller's market.

Your biggest challenge will be making your offer sufficiently competitive against all of the other offers to even get your offer accepted over all of the other offers from well qualified buyers..

The old buyer's market in the Silicon Valley is long gone.

To get a home in today's market, you need to look at it as if you were approaching a highly competitive job interview for a job that you want desperately.

You need an experienced REALTOR to guide you if you expect to be competitive with your offer, and have any chance at all that the seller will accept your offer over all of the other offers.
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