Search ALL Bank Owned, Pre-Foreclosure, Upcoming Auction homes in the Bay Area. RealtyTrac is an excellent source to see ALL homes in various stages of foreclosure BUT we frequently hear from our clients the question as to why only a very small percentage are currently available and listed for sale. The following explains the different stages of foreclosure and why some homes are typically not for sale – today…
‘Pre-Foreclosure’ means the home can be one where the owner is a few months delinquent in mortgage payments or HOA dues. Many of these homes never go to foreclosure as the owner catches up with the debt owed, or arranges a loan modification.
‘Auction’ homes are typically scheduled for an auction on the County Courthouse steps in which the property is located. In order to buy at auction, a Buyer must be 100% CASH and be prepared to close escrow on the home immediately. Typically Auction homes are not available for viewings, so are often bought without an interior viewing. The other risk factor to consider is that there won’t be any disclosures or reports on these homes. You may be buying into a defective property needing extensive repairs in order to be habitable, or find out you have inherited sitting tenants with rights to stay in the property. The minimum bid that is set by the Bank can often be higher than the actual market value of a home because they have to receive a price that the investors who own the loan are happy with, and typically the loans are higher than the value of the property. It is also common for homes to be removed from the sale list on the day of the Auction for different reasons. All ‘Auction’ homes are 100% ‘As-Is’ without any warranty or recourse.
‘Bank Owned’ or ‘REO’ homes are often not available today for purchase even though the details show up on various websites. These homes have been foreclosed and the Banks have taken back possession of the home from the Seller. It can take several months for the bank to negotiate a value with their Investors who own the loan before they decide to list the home for sale on the MLS. Once listed it will immediately appear on our search tool at the top of this page.
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