Pre-foreclosure Vs Foreclosure
Hey guys!
I have been bird-dogging with an investor/real estate agent looking for pre-foreclosures for the last couple of weeks, and was told that I should confine my efforts to the published default lists in the county paper. I was informed that These lists are truly pre-foreclosure, (compiled after only a few missed payments) and apparently superior to anything the courthouse has (info that is compiled only after a lawsuit has been filed by the bank), because banks are much more hesitant to do a short sale when the foreclosure has actually been filed. I have done research at the courthouse and found that the info really is foreclosure info, and not pre-foreclosure info (a foreclosure auction date has been established). Is this accurate? Is all of the county courthouse talk wrong, and have we all been looking in the wrong places?
Has anyone run into trouble getting the bank to do a short sale when the auction date has been set and the lawyer fees have been paid? Thanks for your time,
-Brandon Richardson-
Each state is different!
In Illinois, the judicial complaint takes 7 months. In that case there is enough time to do a short sale.
In other states, like Georgia, there is no pre-foreclosure time. The foreclosure date is set and advertised. We have 4 weeks to get the house or it goes to auction.
In California, a notice of default is advertised for 3 months and then the sale date is set is advertised for 3 weeks.
Each state is different. However, all information (including the county paper listing the foreclosures) is found at your local county courthouse.
Hope This Helps,
Mrs. Meltzer
Once an auction date has been set, there is not enough time to do a short sale with the mortgage companies.
Hope This Helps!
Mrs. Meltzer
"Once an auction date has been set, there is not enough time to do a short sale with the mortgage companies. "
Hmmm... that is interesting, because in IL, the courthouse records show an auction date as soon as the default is recorded! (unless I am reading the documentation wrong... ) At the initial default, the bank sets a redemption period of around 7 months. At the end of this period, is the sale date. How is that too little time for a short sale? Am I misunderstanding something? Thanks for the info,
-Brandon Richardson-
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[ Edited by richar18 on Date 08/21/2003 ] [ Edited by richar18 on Date 08/21/2003 ]
While I agree that foreclosure laws and customs may differ from state to state, and even from county to county... I don't agree with the statement that there isn't enough time to effectuate a short sale once an auction has been scheduled.
As a blanket statement, that simply isn't true.
In fact, I've had experiences when a mortgagee wouldn't even consider accepting a short sale unless/until a foreclosure auction had been scheduled.
(And in that case, the short sale proposal was accepted, too)
This (foreclosure/preforeclosure/REO) is a dynamic niche industry that is effected by changes in the law, internal company policies, the economy, and many unknown factors. It's safe to say that
there are no absolutes.
In fact, one of the scenarios in A Short Sale Primer is entitled, "Never Say Never" which describes the succcessful short sale of a current mortgage loan, the Sellers well employed, and had money in the bank. Yet, there are people who claim that such a transaction is impossible.
Improbable, yes. The exception to the rule. But possible.
You are all correct!
I made a mistake in my post.
I do not know how foreclosures work in Ill.
I left out the words IN CALIFORNIA OR GEORGIA, which made my post a blanket statement.
Blanket statements are BAD!
I will not post erroneous information in the future.
Hope This Helps,
Mrs. Meltzer