If a house forecloses Sept 1, when will it actually be for sale?! (appraised, auction)

[AtlantaGal]

Hello all!

Quick question (I think!)

I am looking to purchase my first home and it's on the market as an approved short sale... however, my realtor recently told me that it's scheduled to go into foreclosure 9/1. He stated that even though it's going to be foreclosed on 9/1, I can't actually buy it on 9/1 as a foreclosure. Something about it having to be specially appraised (a "BOA" or something)... processed, etc... and may not be on the market as a foreclosure for some time.

Is this the norm? If a place is set to be foreclosed on 9/1 - when could I reasonably expect it to be on the market and available to be bought?!?!

Thanks in advance!

[olecapt]

Originally Posted by AtlantaGal

Hello all!

Quick question (I think!)

I am looking to purchase my first home and it's on the market as an approved short sale... however, my realtor recently told me that it's scheduled to go into foreclosure 9/1. He stated that even though it's going to be foreclosed on 9/1, I can't actually buy it on 9/1 as a foreclosure. Something about it having to be specially appraised (a "BOA" or something)... processed, etc... and may not be on the market as a foreclosure for some time.

Is this the norm? If a place is set to be foreclosed on 9/1 - when could I reasonably expect it to be on the market and available to be bought?!?!

Thanks in advance!

YOu won't like the answer. Two weeks to a year or more.

If the house is vacant and ex-owner is cooperative it can be on the market in a week or two. Normally most are on the market in six weeks. If people are living in it three to six months depending on where. If someone is fighting about it a year or more. The lenders are in trouble if anyone substantially resists. Not set up to deal with that. The foreclosee is supposed to quietly crawl away into the night. If not the whole thing breaks down.

[changyai]

I was going to say a minimum of two weeks from the time the Bank becomes the legal owner.

[DowntownVentura]

I think I am missing something, if it goes into foreclosure, you are out of the game. You can show up at the next game (the auction) with everyone else and give it your best bid. At least that is my understanding.

[AtlantaGal]

Thanks for the replies!

Downtown: I thought you can put offers on foreclosures just like any other property. I can only put in a bid @ auction?

[chet everett]

Two different things -- if you have CASH and the amount owed to the lender is far below the value that the lender would likely receive from marketing the house it is possibe / advisable to go to the court ordered auction and BID AGAINST the bank to purchase this property.

If the lender is owed MORE than the property would fetch there is unlikely to be anyone that would bid what is owed and thus the lender will be FORCED to market the property once they take possession.

Buying an REO is MUCH EASIER than buying a short sale, though the lender will likely have some hoops to jump through after they take possesion and before they can sell to you.

It is probably less confusing to refer to "foreclosed" properties as "real estate owned" by the lender -- REO and properties offered for sale at a court ordered auction as "foreclosure settlements"...