As a listing agent for foreclosures, I often get phone calls about the price of a not-yet-listed house, because there is a "sign" in the window. When a property goes into foreclosure, the house is "posted" with paperwork on the door. No Trespassing, CAUTION: Property has been winterized, For more information contact...
Answer: I don't have a price on it yet. If I did, I would have the property listed in MLS and my real estate sign in the front yard.
The first paper that goes up in the window may be from the property preservation folks. Sometimes the lender has discovered the house vacant and abandoned long before the formal foreclosure proceedings complete or even before they start. Abandoned properties are secured, but the typical property preservation measures of lawn maintenance and "trash out" are on hold until the foreclosure is complete.
When a house is in this holding pattern, neither the property preservation company or the real estate agent will know anything about pricing. In fact, the agent who will eventually list the property probably does not even know whether or not the property will become their assignment. If the lawn is not being maintained, that's a strong clue that the house is in limbo.
There is at least one other question the would-be-buyer usually asks: How long after the paper goes up in the window until the home comes on market? Foreclosure proceedings can take months. If the house is "in the process" of foreclosure, interested parties can do nothing but wait. Neither the property preservation company or the real estate agent will be able to answer questions about the time-frame.
Most of the time, however, an agent will be assigned to the property within a couple of weeks after the foreclosure is finalized. That is when things start happening.
The property now enters into a clean-up and valuation phase. Sometimes the seller will decide to do repairs prior to marketing the house, so that will add to the time-line. Once the clean-up, valuation and repairs (if any) are complete, the REO owner will set a price and the property will be listed. That phase can take another two weeks to two months.
If the property is occupied when the foreclosure is finalized, the answer is simply: I don't have a price on it and I do not know when the house will be available.
If the property is occupied by anyone when the foreclosure is completed, the process of getting it listed and on market is delayed while the status of the occupants is resolved. In that case, the first paper that gets posted on the front door may be from me. I post "Know Your Options" information (or a similar letter) for the occupants if nobody comes to the door when I knock. If the property is occupied by a tenant, the bank may negotiate a new lease with them.
Sometimes a foreclosed property is marketed with tenants in it, and other times, it remains off market while it is leased. Former owners are not given a lease option; and they will, eventually, be evicted if they do not vacate the property.
Many banks will offer a payment to help the occupants relocate, commonly referred to as cash for keys. During the eviction process, the house may be posted by the county sheriff, who will be following court orders. Former owners and tenants without enforceable leases are subject to eviction. Eviction is that unpleasant eventuality where occupants and their belongings are, literally and figuratively, forced from the property.
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If you are looking for a foreclosure in Cape Girardeau, Perry, N. Scott, or Bollinger counties, I am the region's most experienced REO agent. As the area's ONLY Fannie Mae direct listing agent, I list more foreclosure properties than any other agent in this MLS. I am the only local agent approved to both list and sell HUD properties, so give me a call if you are looking for help with the purchase of a foreclosure property.
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http://www.homepath.com/ for Fannie Mae properties
http://www.homesteps.com/ for Freddie Mac properties
http://www.hudhomestore.com/ for HUD properties (foreclosures that were FHA financed)
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