Short sale buyers need to be alert for trustee sale advertisements

Short sale buyers need to be alert for trustee sale advertisements

Short sale listings are called pre-foreclosures for a very good reason. A high percentage of them go to foreclosure before a short sale transaction is completed. Home buyers and their buyer agents need to be alert for the status of properties that they contract to purchase.

This morning, I noticed a trustee sale advertisement for 11202 YARDLEY CT, IJAMSVILLE, MD 21754. The trustee sale is scheduled for April 27, 2011. The required $50,000 deposit would tend to indicate a $500,000 first mortgage loan amount. Trustee sale auctions at the court house is the way that foreclosures are sold in Maryland.

We have clients interested in the area, so I checked for the history on the multiple listing service. The home was offered as a short sale at $399,000 and the status shows that it is under contract with a March 18, 2011 settlement date. Hopefully, the property will go to settlement before the foreclosure.

Every week, we see listed properties scheduled for trustee sales. Sometimes, the buyer are not even notified. All of us need to be extra alert when dealing in a short sale environment.

 Blooming for smart home buyers.