Foreclosures

Foreclosures

Finding a foreclosure property is not hard to do. However, the inventory has dwindled and property inventory is down. Much of the "shadow inventory" has been either sold off to investors, private parties, the owners have done loan modifications or short sales. 

Depending on your needs and financial situation, it may be your best be to speak with a Realtor to discuss your options and figure out a game plan. 

The foreclosure process starts when a homeowner does not pay their mortgage for a minimum of 3 months. Then a Notice of Default (NOD) may be filed against the property. These notices are public record.

However, many of the NOD's may be very old. In some cases, they may be over 3 years old and there is a history that has transpired during this time. 

When a NOD is filed against a property, due to the Obama Home Affordability Act, the banks must reach out to the homeowner to attempt to resolve their mortgage deficiency by offering solutions like bringing he loan current, doing a loan modification, refinance or restructure of loan, short sale, deed in lieu of foreclosure or just to go to foreclosure. 

What happens in this case, is that this ties up the property for several months, sometimes for several years, whereas the homeowner sits in the house, either making reduced monthly mortgage payments or no payments at all...attempting to do a loan modification or a short sale until the bank decides that they will or will not qualify and then they either get the loan modification or foreclose. 

The process is lengthily. 

Once the NOD time period is up, which is usually 3 to 6 months, depending on where the bank is with the process, then the bank will file a Notice of Trustee's Sale (NOTS). This notice tells the homeowner that the property will be sold at auction on a specific date if the mortgage loan is not cured. This usually gives the homeowner 23 to 30 days before the auction date. This is also public record. However, the auction date is subject to change, be postponed or be canceled depending on what the homeowner and bank decide to do. 

If the homeowner is in the loan modification process, the auction date may be postponed until final determination by the bank. The homeowner may file bankruptcy, which will postpone and/or cancel the auction date until the bankruptcy is discharged, which takes about 6 months from the date it was filed with the courts. 

I had a short sale client who stayed in their house for 3 years without paying their mortgage. I have heard of people doing this for up to 5 years. 

So, as you can see, these NOD's may not be accurate. Your best bet is to work with a Realtor who knows this process and can take you through it. 

Your other option is to learn how to track the NOTS's and then go to the Auctions to purchase the homes. For this, you will need to have cash on hand for the purchase price. 

There are also websites where you can bid on properties...sight unseen...I don't recommend that because you may be getting a "Money Pit" home with deferred maintenance and other major issues. 

Make sure you see the property first and take a licensed contractor with you to evaluate the property. 

Let me know if you have any questions. I would be more than happy to assist. 

I have a major foreclosure background...I worked directly for the banks liquidating foreclosures in the past. Keep in mind that the inventory has dwindled down. 

Contact Information

Photo of Kathleen A. "KAT" Becker Real Estate
Kathleen A. "KAT" Becker
Berkshire Hathaway HomeServices California Properties
3130 Wilshire Blvd, Suite 100
Santa Monica CA 90403
(323) 819-4760 Cell
(310) 255-3489 Office
Fax: (310) 829-7541

PROBATE AND TRUST SALES ARE MY SPECIALTIES!!!  

I CAN SHOW YOU HOW TO AVOID CAPITAL GAINS TAX AND POSSIBLY PROBATE!  

LET'S TALK!!!  CALL OR TEXT ME 323-819-4760

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