We live and breathe the real estate market-  I must say the words  "short sale" and "foreclosure" at least 100 times a day. But it still amazes me how much the general public does NOT know about what's really going on today.

Weekly I'll get calls with people asking:

Q. Can't I just talk with the (preforeclosure) homeowner and take over his loan?

A. -- Banks aren't doing assumable loans anymore

-- You probably don't want to take over his loan because most likely it exceeds current market value

-- You would have to also pay to run a title search and find out about any/all potential liens

Q. I've got cash-- can't I just snag it at auction?

A. -- At trustee sales, banks "price" homes high to recoup losses. No sane person would want to buy at a price which far exceeds current market value

-- You would also want to run a title search to find out about any/all potential liens

-- You probably won't have a chance to pre-inspect

Q. Can't I just call the (REO) bank and buy it before it hits the MLS?

A. -- Banks are great at NOT giving any information out especially to the general public; they have very rigid protocols and their assets (REOs) move through their system in a prescribed fashion

-- Banks also have a fidiciary duty to their investors to recoup the most money possible, and by making outside "deals" , they would forfeit potential multiple offers and higher prices that a MLS listing could bring

Q. I keep reading I can pick up a foreclosure for pennies on the dollar. Why can't you find me one like this?

A. Which city in the civilized world were you wanting? Please cancel your subsciption to whatever newsfeed you're using because they are hopelessly ignorant. Now if you have $12mil plus, we can talk about bulk...

Q. I keep seeing some really low prices on some short sales; why aren't you calling me about these?

A. Unfortunately, there are some agents out there who are listing homes at ridiculously low prices just to encourage a flurry of offers. I'm happy to provide you with the sold comps, which are the reality of the current market, and the price at which you can expect these homes to ultimately sell for. If you would like to be one of 40-70+ offers, and never get an answer, I won't be able to help you.

Q. Why can't I just buy back my own house at the new lower price?

A. I really wish you could. Once you stop making payments and start the short sale process, the bank will not permit any  family member (including yourself), and many times even neighbors or friends, to purchase your home. Please don't try to get someone you know to do this covertly.

Q. If I'm losing my house anyway, why should I bother to keep paying my HOA dues or property taxes?

A. Banks used to cover most of these expenses but they are getting tighter and tighter with their spending. If you're trying to do a short sale, and refuse to keep up with these items, there's a chance the bank could go ahead and foreclose.

Q. My bank didn't really explain anything to me-- I haven't made payments for 6 months and the auction is scheduled for next week. Can you help me?

A. I will do my best but please know that this is a very tall order. Until regulations really change, I must bring an offer to your bank within hours, which means I must list your home within the next few minutes. I'll come over right away and see if you are a candidate for a loan mod or a short sale; yes, there are prequalifications for these and I will explain them thoroughly. PLEASE, tell other people you know that REALTORS(R) can really help you-- we don't charge an upfront fee and we will give you and point you to excellent information. The sooner you feel you're heading towards financial trouble, call us.