As reported on KHSL Channel 12 on October 28, Chico has earned the dubious distinction of being named a ‘Foreclosure Hot-spot’ based on a reported 284 foreclosures in 2008. So what does that mean and what’s happening with these foreclosed properties?
Foreclosure is the process by which a lender attempts to either sell or take back a home, usually initiated after 3-6 months of missed payments. The first step in the process is a Notice of Default, where the borrower is notified of the lenders intent to foreclose. If the borrower doesn’t work things out with the lender a Notice of Trustee Sale is filed and posted, specifying a date that the property will be sold by the bank. Even at this late date homeowners may be able to work things out with the bank to avoid foreclosure (see your attorney!), but if not the home is sold at the county courthouse to the highest bidder. If there are no bidders or the highest bid is lower than the bank is willing to take, the bank itself claims title to the home and it then becomes what is known as an REO (Real Estate Owned).
Buying a foreclosed property does not disadvantage the previous home-owner, they gave up the property well before it became available for purchase as an REO. And buying a ‘short-sale’ property (buying it from the owner BEFORE it is foreclosed on for less than the bank is owed) in many cases is a relief to the current home-owner, who may be able to salvage some vestige of their credit if it is sold rather than being taken back.
Many short-sale or pre-foreclosure properties are listed for sale in the Chico Multiple Listing Service, please contact me if you’d like to receive automatic notification each time one is listed for sale. In many other cases, owners have already ‘given-up’ and conceded that the home will be foreclosed on when in fact they, the bank and a potential buyer may be able to benefit from a short-sale. I regularly receive lists of these unlisted pre-foreclosures that never show up on the multi-listing service, if you’re serious about finding an unlisted short-sale property please let me know.
Likewise with REO or bank-owned foreclosures. Many eventually hit the market, and are typically priced so competitively that they receive multiple offers. Savvy agents and buyers know that there is a ‘lag-time’ between the Foreclosure and the home being listed for sale when an offer may find favor with a bank before being exposed to the masses. Once again, please contact me if you have an interest in this process.
Some information for this article was found at http://www.biggerpockets.com/foreclosure-process.html
Foreclosure is the process by which a lender attempts to either sell or take back a home, usually initiated after 3-6 months of missed payments. The first step in the process is a Notice of Default, where the borrower is notified of the lenders intent to foreclose. If the borrower doesn’t work things out with the lender a Notice of Trustee Sale is filed and posted, specifying a date that the property will be sold by the bank. Even at this late date homeowners may be able to work things out with the bank to avoid foreclosure (see your attorney!), but if not the home is sold at the county courthouse to the highest bidder. If there are no bidders or the highest bid is lower than the bank is willing to take, the bank itself claims title to the home and it then becomes what is known as an REO (Real Estate Owned).
Buying a foreclosed property does not disadvantage the previous home-owner, they gave up the property well before it became available for purchase as an REO. And buying a ‘short-sale’ property (buying it from the owner BEFORE it is foreclosed on for less than the bank is owed) in many cases is a relief to the current home-owner, who may be able to salvage some vestige of their credit if it is sold rather than being taken back.
Many short-sale or pre-foreclosure properties are listed for sale in the Chico Multiple Listing Service, please contact me if you’d like to receive automatic notification each time one is listed for sale. In many other cases, owners have already ‘given-up’ and conceded that the home will be foreclosed on when in fact they, the bank and a potential buyer may be able to benefit from a short-sale. I regularly receive lists of these unlisted pre-foreclosures that never show up on the multi-listing service, if you’re serious about finding an unlisted short-sale property please let me know.
Likewise with REO or bank-owned foreclosures. Many eventually hit the market, and are typically priced so competitively that they receive multiple offers. Savvy agents and buyers know that there is a ‘lag-time’ between the Foreclosure and the home being listed for sale when an offer may find favor with a bank before being exposed to the masses. Once again, please contact me if you have an interest in this process.
Some information for this article was found at http://www.biggerpockets.com/foreclosure-process.html
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