When it comes to searching online for distressed real estate – foreclosures – short sales – short pays – bank owned – and Real estate owned (REO) inventory, you will need access directly to the multiple listing service, MLS, and also need to have someone who knows what to look for in the public record system.
A foreclosure is any property which has had a default judgement granted by the courts, where the owner of the loan/lien has breached their contract with the bank or lender. To put simply – the owner quit paying their mortgage.
The lender, bank or banks who own the loan or lien, then file a notice of default with the courts, at least in California, notifying them of the impending action of foreclosing and about the actions of the “borrower”.
After a few months, to years, then the home reverts back to the bank, loan/lien holder, who has the most interest in the property. During this process the seller may have to be evicted, may leave on his own accord, or may try to slow/stop the process with the utilization of legal power.
We can deduce that a REO, real estate owned foreclosure – a Bank Owned or Investment Company Owned – Hedge Fund Owned – or Corporate Foreclosure, are all Foreclosures which have different types of ownership. However, they are all still foreclosures.
Short Sales, aka short pays, are an event where the homeowner, the person who has the loan from the bank, cannot or will not continue to pay their mortgage.
I say Cannot or Will not because not all short sale sellers have the same intentions.
The Cannot Scenario with a Short Sale – These are folks, people, families, and others who have been impacted by a life changing event. Maybe these events were involving the three D’s – Death, Divorce, or Disease. Maybe it was something else, like job loss. All that is important is there is a substantial amount of emotional pain involved – bringing these people to the point of needing to sell their home short of what they owe (short sale).
The Will not scenario with a Short Sale – These are people who owe more than the home is worth and don’t want to proceed with paying the financial institution who lent them the money to buy the home. They see the home as being “too far” under water to make sense. Therefore, they want the real estate sold short. FYI – at the start of the last short sale cycle – back in 2008, short sale sellers of the “will not” type were not allowed to short sale for this reason. It was not until closer to the middle to the end that they were greenlighted by most of the banks with short sale sellers as these.
They then hire someone like me, a Short Sale specialist, and I petition the bank (lender(s) of record) on their behalf, making the lender of record to allow the short sale seller to sell their home for less than what they owe.
Sometimes, these short sales are great deals for real estate buyers. Sometimes, they are not. They should all be entertained on a case by case basis. Only an expert in the short sale process should be explaining them to you as a potential short sale buyer.
Ready – willing and able
When you are ready, reach out to me directly. Let me know what you are looking for and we will develop a game plan so you are able to get what you want from the distressed real estate market.
If you are being unreasonable, I will let you know. I don’t hold back, but don’t attack either. I give facts and real life experiences to explain how things “really” work and how you can best get what you want within the real estate sphere.
I’m Connor and I’m glad to be of service to you and your friends/family/ and all you know!