Question

We are starting to look at houses. Probably still 3 to 8 months away from buying but starting the process. When looking at Zillow I see listing with Pre-foreclosure / auction on them. Listed Price $112, 000 and $69, 875 unpaid balance> I assume the 69k is what was left on the loan but besides that really no other ideas. Should I stay away from these types of listings? Is the 112k is what the bank is hoping to get? Any insights or previous LMM episodes or articles would also be great.  

Answer 1

I would try to find an agent that has closed multiple transactions on foreclosures, pre-foreclosures, and short sales. You're going to want some experience in your corner to watch your back for you.  

Comments

@mendelian oh for sure. Just curious and have some knowledge before even reaching out.  

Answer 2

It’s a very challenging process, my daughter has purchased a short sale (not a huge discount) foreclosures go to auction financing those is a problem.  

Answer 3

Long arduous process. Please get experienced professionals to help as thoae above mentioned. Also, it may not be worth getting a foreclsoure, as those properties tend to be in great disrepair. Can be very risky.  

Answer 4

Thanks, everyone!