Real Estate Guy team is experienced in helping people navigate the tricky path of home ownership.  

This path is perilous for many trying to get them selves a steal (and who doesn’t want one of them? )

Yes! everyone wants a steal or a hot deal.     They have heard to ask for a “foreclosure”   but very few actually realize what that means.

Truth is very few homes are sold at the true foreclosure, or sheriffs auction.     it is considered too risky as the buyer has not seen the property and buyer needs to pay cash.  

So when a buyer asks for a foreclosure they really mean either pre or post foreclosure.     Both are distressed sales.

Preforeclosure.

When a seller is needing to sell and owes more  to the bank than will net on the house.      Foreclosure may or may not be commenced at this point.

This is generally called a short sale.   When the Realtor for the seller negotiates or arranges an agreement whereby the seller can sell the home so buyer can get a clean title.

Buyer must beware this procedure can take a long time, a very long time if   listing agent is not experienced in this issue or the bank is Countrywide/Bank of America, which is currently in a shambles.   This can mean delays in closing and stress for the buyer.

Can the buyer get a deal?   possibly, but nothing is definate till closing so the buyer could not be approved because a better offer arrives.  

Post foreclosure also called REO –  real estate owned (by bank)

After the sheriffs auction the bank usually takes back the property and hands it to an agent to manage and sell.  

They are usually priced competitively.   Usually to get multiple offers.    In our Madison Wisconsin market i have seen buyers bidding up prices to get a good home.

The bank is in control of the sale.     They are basically a law unto themselves.     they insist on addenda favoring themselves, they take their time to chose an offer and sign it when they are good and ready.    

Closing can be  quick, and title is clean because foreclosure has removed all leins (monies owed).

I hope this quick guide is helpful, but anyway there are 2 things to remember.    

  1. although it is complex, a competent Realtor can help you navigate the pitfalls.
  2. deals are available, but i would say that in Madison, steals are not.  call us for  more information BEFORE you get started.

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