The answer to your question is not simple. May I ask "Why do you ask?" If you are looking for a steal, they are out there but probably won't be found the way you are thinking. If a home is ready to be foreclosed, the sellers may still live there and still (in PA) have the opportunity to come up with the amount they owe to keep the house. That is very risky business, not for the average consumer I can assure you.
If on the other hand, you are thinking of a few that you have "heard about" or saw on RealtyTrac etc, no agent can help you unless they have serious contacts in the REO industry (I do). They can begin the process of determining which bank owns the property if at that point and when they are likely to begin allowing offers. There are MANY, some 700,000 homes about to hit the market come June that banks have been sitting on during the Obama efforts to curb foreclosures etc to keep the prices from plummeting any further while they tried in vain to keep more folks in their homes... Not all in our area, before anyone faints!
I'd be happy to educate you some on this process. Are you a first time buyer? I offer the book titled "Your First Home" to all my first time buyers whom meet with me in person if you are interested. Just email me or call me... IreneButler@kw.com or 474-576-9491.
The foreclosure process is quite lengthy and starts when the borrower defaults on the loan. The following steps are included but are probably not all of the steps in the process after the borrower defaults.
- The lender petitions the court to sell the property.
- Borrower notified, has chance to catch up on payments, fees, remaining balance of loan.
- Borrower can't pay, home is slated for sheriff sale.
- Borrower can petition the court to stay the sale.
- If the sale goes on, potential buyers bid for property.
- If the property is sold at sale, sheriff evicts squatters (prior borrowers).
- If the property is not sold, the bank â€œbuysâ€ the property back.
- Bank puts the property on the market through a broker.
- For lenders who have VA or FHA backed home loans, they give the property to those agencies recovering the funds and those agencies either list with a broker or post those properties on their own web sites.
Now, even before this happens, the borrower sometimes lists the property (with the lender's approval) as a short sale (the price of the home is less than what is owed).
Moral: Get a real estate agent to help you out. They can show you properties which are either in foreclosure or will be a short sale. They can also assist you with properties which are slated for sheriff sale to see if they would be profitable. But agents don't have access to who's late on payments.
Hope that helps,
Terrence Charest, e-Pro
Basically to answer you question: Pre-foreclosure Homes are not listed as pre-foreclosured. They are properties that could be for sale with a Real Estate Company called (short sales) see my blog on short sales- http://mbarone1.wordpress.com/category/uncategorized/
This would educate you on the short sale process.
The Delaware County courthouse website shows foreclosures upcoming at the Courthouse, Either Sheriff sales or Judicial Sales: http://www.co.delaware.pa.us/sheriff/realestate.html
In addition to working as a Real Estate Broker in the area; I also work for a company who has contracted with a few dozen banks and servicers throughout the country. The objective is to help homeowners with the Obama's administration HAMP program, (Homeowners Affordable Modification Program). Homeowners are given the opportunity (if financially capable) to modify their mortgage loan. In the event homeowners either can't qualify for the HAMP, they will decide to sell the property prior to the foreclosure date. These lenders throughout the US do not wish to foreclose on homeowners since it will cost thousands in legal fees.
It basically starts like this:
This process of foreclosure begins when a homeowner defaults on their loan. Generally when this occurs, the lender involved will issue the homeowner a notice of default, after 60 days (Act 91 notice) and for all intents and purposes this begins the preforeclosure period.
Then from here on out there are many things may happenâ€”the homeowner could and may raise the money to pay off their default debt to the bank or lender and stay in their home,(Modify) (HAMP) their loan to continue make payments to the lender on a 3 month trial period (until they are approved with the (HAMP), OR the lender issues a Notice of Sale (judicial sale) and arranges to put the property up for sale at a later date, (REO) OR the homeowner finds someone willing to buy their home and avoids a foreclosure sale. OR Sell the property if the homeowner is (upside down). (Short Sale)
This last option is becoming increasingly common, as investors and home buyers alike often look to find great homes for sale at extremely low prices through the short sale process.
You would need an experienced (CDPE) & (SFR) Certified Distressed Property Expert and (SFR) Short Sale Foreclosure Specialist o work on your behalf. E mail: email@example.com Direct 484-468-1310
Hope this helps and Good Luck!
Mark Barone-, ABR, CDPE, CRS, GRI, SFR
Keller Williams Real Estate, Media, PA
But that at least this site gives you the clearest information out there so far as I have seen to at least let you know what else the bank may already own and that equals LEVERAGE! It also gives me, as an agent a heads up on a comparable REO home that an appraiser may use that may not have wound up in the MLS. (Multiple Listing System agents use)
Remember, these banks are not in the business to manage, maintain or even sell assets, which is what they consider homes they have foreclosed on... Assets. But as a Realtor, I must simply remind them again and AGAIN that they are not assets if they are costing money! Recently Fannie May and Freddie Mac did a study (go figure) that it actually costs LESS to short sell than the long drawn out process of foreclosure. I wish I had been a bug in the wall for that meeting! Hello! Here is the difference, according to their study... Short Sale = 18% LOSS. REO = 40% LOSS (Foreclosed Home sits vacant, must be monitored, maintained, sold eventually anyway usually for much less due to condition, vacancy, vandalism, lack of appeal and bad karma and so on, etc) So they have begun to wise up. Need I say more?
Again, it sounds like you are newer to investing. Please chose wisely who represents you. This is not a game. It is YOUR HARD EARNED MONEY and should be treated by a professional. There are many, many great opportunites out there. And I commend you for doing your homework and seeking answers because believe it or not, that's rare!
I offer investors another book titled Millionaire Real Estate Investor. It is a grand addition to the other book called FLIP. Both are compilations of many experienced, national investors who have paved the way and shared their experience in print. In my opinion, it's an excellent way to further educate yourself. I'd be happy to provide you this, just contact me.