Property listed for sale is in pre-foreclosure stage

Real Estate Agent with Alain Pinel BRE 01367196

Before looking at a property, I researched the status of that property because it had appeared as a pre-foreclosure on another site besides the MLS.


I asked the agent an update on that pre-foreclosure. And she said if seller sells at or above list price by next month, the sale will go through because the foreclosure date is not until November 2017. However, there was no mention of this in the confidential remarks. It seems that this should be material fact.


What if an offer is accepted on Sept 21, but the buyer runs into a challenge closing in 30 days, and the escrow continues through November? It would be nerve-wracking for the buyers and their agent to have that foreclosure looming ominously over the deal. If the property is foreclosed before they can close escrow, the buyers will be out of luck with any costs they may have incurred in terms of inspections and appraisal.


Shouldn't that possibility of foreclosure be disclosed?


Comments (4)

Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Pacita, one would think this would be disclosed.  In Colorado, we have specific forms to use if a property is in default.

Sep 19, 2017 03:24 PM
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Joan Cox, that's how I think, too. We have listing agreements when properties are offered as a short sale or an REO --- but this was presented as a regular listing. 

Sep 19, 2017 03:31 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Pacita, nice to see you back it has been too long, hope you stay around this time, Endre

Sep 19, 2017 11:47 PM
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Hi, Endre Barath...yes, it's been way too long. Trying to get my ActiveRain legs back......

Sep 20, 2017 12:21 AM