Kendall, I signed up to get foreclosure listings on your website. Are these homes short sales? And is this the asking price or just a process the lender is using to obtain higher bids. The reason I ask is I have heard that banks list homes with teaser prices and that often there are additional liens against the property and that the asking price will not provide a clear title.
-Darrell
Darrell, you have the pieces to several puzzles mixed in the same box. Let me sort them out for you. All of the properties I am sending to you are bank owned and are marketed through the multiple listing service. When you buy a property from a bank this way you will get clear title. The bank will have wiped out any liens. When you have to worry about liens is when you try to purchase a property at a foreclosure auction. You would literally have to do a title search on each property before you go to the auction. That is best left to the pros. In our community the bank is typically the only bidder at auction for these reasons. It is better to wait until they clear the title and offer the property on the MLS. Having said that you are correct that many banks are using artificially low prices to attract multiple offers and create a sense of urgency on the part of buyers. It works. I'd say that roughly 70% of the bank owned homes in our community are marketed this way. They are usually under contract in a matter days more often than not for more than the listed price. You may already know this but a short sale occurs when a home owner cannot sell their home for the balance of their loan and the bank agrees to a "short payoff". Roughly 50% of attempted short sales fail. In a successful short sale you will also get a clean title because any liens will be paid out at closing reducing the proceeds to the bank. In either case short sale or bank owned, it is essential that you the buyer either have written pre-approved for a mortgage from a legitimate lender or proof of funds if you are paying cash for a property. If you submit an offer with out one the bank will dismiss your offer as unqualified. I hope this helps. Feel free to call me anytime if you have more questions. I am here to help you.
Kendall
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