When You Find A Pre-Foreclosure On Zillow And Like It (preforeclosure, sales)
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Lately while I have been cruising Zillow and such consumer search sites I have been coming across some pretty attractive properties in Pre-Foreclosure. Well attractive as far as the aerial view and knowing the neighborhood/ possibly driving by it.
But my question is, what steps do you take then? I'm a first time homebuyer, and I'm guessing this is a pro's game, so it's probably not for me, but I can't help but be curious.
Zillow shows: The date the loan was issued, price and name of the bank. Then it shows you the date the owner was served a notice of Lis Pendens and the foreclosure trustee or attorney contact information.
So what's next? You contact the attorney? You never get to look at the house?
I am also a first time home buyer and was browsing around on zillow and most of the properties that I fell in love with, including the price were short sales.
So far, we put an offer on a short sale. I am not experienced and still learning, but if you fall in love with a home you view, go for it.
We fell in love with a home, and made the choice to go for it. Try to make sure, you deal directly with the listing agent, who lists the property. ( I heard that's best) Also, question he/she is they have experience with short sales and closings with short sales.
I feel like most 88% of the timeline stories I read here, close within 6 months, and there are some that dont close or take longer.
Quote:
Originally Posted by dollerprod
Lately while I have been cruising Zillow and such consumer search sites I have been coming across some pretty attractive properties in Pre-Foreclosure. Well attractive as far as the aerial view and knowing the neighborhood/ possibly driving by it.
But my question is, what steps do you take then? I'm a first time homebuyer, and I'm guessing this is a pro's game, so it's probably not for me, but I can't help but be curious.
Zillow shows: The date the loan was issued, price and name of the bank. Then it shows you the date the owner was served a notice of Lis Pendens and the foreclosure trustee or attorney contact information.
So what's next? You contact the attorney? You never get to look at the house?
FYI, there is a big difference between a pre-foreclosure and a short sale.
A short sale is where the person has decided to list the home with a realtor and see if they can get a buyer for it. However it does not necessarily mean that the bank has agreed to do a short sale at all and the listing price is on they will accept (the homeowner may have already done that, but they could also be hoping that if they take a reasonable offer to the bank that the bank will just take it).
A pre-foreclosure means that someone has fallen behind on their payments. As the Zillow link points out, they may rectify this or they may not. So it is possible that the property will never be available for sale, hence why they say you first need to find out the status and be careful with contacting the homeowner directly as it may be a very delicate situation.
My advice, try looking at short sales or REOs (real estate which has been foreclosed on and is now being sold by the bank). While there is still a lot of uncertainty, at least you will be dealing with homes that are definitely trying to be sold and not getting your heart set on ones where there was never a chance. As for your question about inspections, in either of these cases you should be able to negotiate for one but what is allowed and how much time you will get will vary.
OK first I want to apologize if I come off like I have know Idea what I am talking about. it was just recent that I have been finding what I want to do in my life and think I have finally found it. I Want to make money while helping others. I love buying and selling things which got me to questioning what could relate to both helping people while making money and buying and selling things. I know there is more to pre foreclosures then just that but this is what I am determined to learn and want to do. I guess the question I have for you all is, what happens when you have an agreement with a home owner in the pre foreclosure process where I would pay there delinquent pass due bills in return there house doesn't get foreclosed on and I get the property. I understand there is a way to do it with the loan staying in there name until the house is resold but what happens if the house doesn't resell who makes all those monthly payments? and how can I minimize the chances of a home not selling. Once again I apologize if I come off ignorant and hope one of you can give me some great advice and help me get into this market. thanks for your time
I guess the question I have for you all is, what happens when you have an agreement with a home owner in the pre foreclosure process....
Its called buying the house from them.
Quote:
Originally Posted by westbury17
where I would pay there delinquent pass due bills in return there house doesn't get foreclosed on and I get the property. I understand there is a way to do it with the loan staying in there name until the house is resold but what happens if the house doesn't resell who makes all those monthly payments?
That is crazy talk considering most homes are underwater and that is why they are being foreclosed on instead of selling. If they owed $50k on a $100k house they would simply sell it. If they owe $300k on a $100k house they simply say to hell with it, I will stay here for free until I get kicked out. Let the bank foreclose.
Giving someone a loan who is in the process of getting foreclosed on is the riskiest thing I've ever heard. You pretty much have no chance of getting paid back and no collateral.
I am also a first time home buyer and was browsing around on zillow and most of the properties that I fell in love with, including the price were short sales.
So far, we put an offer on a short sale. I am not experienced and still learning, but if you fall in love with a home you view, go for it.
We fell in love with a home, and made the choice to go for it. Try to make sure, you deal directly with the listing agent, who lists the property. ( I heard that's best) Also, question he/she is they have experience with short sales and closings with short sales.
I feel like most 88% of the timeline stories I read here, close within 6 months, and there are some that dont close or take longer.
EDIT: I decided to start a new thread for my question....
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