Profile picture for odaykk

I am interested in a property that is in pre-foreclosure. Can it be bought off the market?

I found a house on usa-foreclosure.com that is scheduled to be auctioned in July. I wonder how to go about seeing if the current owner may be interested in selling prior to the auction. The owner bought it in 2003 for $175,000&I am interested in paying less than that if possible.
  • April 28 2009 - Beaverton
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Answers (6)

Profile picture for Mark LeMenager
Wow, Rochelle, you are a rookie aren't you.  The question is 10 months old and Zillow will soon be erasing all your contact details.  That's a no-no here.  It's OK on Trulia.
  • February 10 2010
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If a home is scheduled for auction, you can sometimes get the owner to agree to a short sale.  However, without knowing the condition of the house now and when it sold in 2003, I would make the very general statement that homes are still significantly above 2003 price levels. 

If you look at the 10 year home value graph on zillow  under the local area tab at the top of the screen, then click on Beaverton market info, and set the time period to 10 years (http://www.zillow.com/loc ... %2C275412)   You will see that homes are, in general, still about 30% above the 2003 levels.    That being said, if there are conditions that you think would make the bank allow a short sale at that price, it does not hurt to try. 

In my experiance banks will usually accept 10-20 percent less then what they think the current market value of the home is.  It looks like this may not be enough to make them interested in $175,000 unless the home was in better condition in 2003.  You can ask a realator for a better idea of the current market value of the home.   Hope this helps.

Rochelle Koerner
Real Estate Broker
Keller Williams- Sunset Corridor

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  • February 10 2010
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Odaykk,
You reallly need to work with a professional that knows both; how to deal with a homeowner and a bank that is in this scenario. Most of those websites just publish and try to sell data, they don't have real knowledge of the area or the situation. Find a local Realtor that is well versed in Pre-Foreclosures and work through them. Don't expect ot pay pennies on the dollar you need to be realistic. 2003 values are not that inflated. 2006 maybe another story. What is the house worth? What are the current comps in the area? Remember the bank is going to do thier homework prior to agreeing to any short sale, you should too!

Good Luck! Tim Stuart
  • June 26 2009
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Sometimes the owner is not aware their information will be broadcast on public websites.  It is often a good idea to start out by sending a polite letter.
  • April 28 2009
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I assume the lender has served notice that in July they will auction off the property. If that's the case, you might be able to persuade the seller to do a short sale on their home. The compelling reason is that a short sale is less damaging to the homeowners credit than a foreclosure.

Unfortunately knowing what the homeowner paid for the house doesn't always give the clear picture of how much is owed. I attempted to sell a home for a client who had been foreclosed but was in redemption. Unfortunately they had  multiple tax liens and junior loans that made it impossible to sell and the home went back to the bank.

Short sales are difficult beasts and require alot of patience from all parties involved (usually the bank is taking a hit on the loan and not the homeowner). If it doesn't work out, consider waiting out the foreclosure and buy the home from the bank. It may be less of a headache and for less money.
  • April 28 2009
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That's a very good question! Frequently we buy properties pre-foreclosure. If it has not been foreclosed upon, the Owner still owns it only subject to paying off whatever is owed against it such as a mortgage or two, taxes, POA dues or maintenance fees and any other liens that may exist. You could go straight to the Owner himself and see if he will talk to you but I would suggest you have a Realtor that is experienced in pre-foreclosures do the talking for you. There is too much exposure and risk to go it alone. The Realtor will be able to advise you every step of the way and work thru the myriad of potential problems that go with buying distressed properties. This is a true "buyer-beware" situation. I can and would be happy to help you find a qualified Realtor to work with you. Bryan.Anthony@ERA.com
  • April 28 2009
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