FORECLOSURE TYPES AND OPPORTUNITY
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Pre Foreclosures
A Notice of Default is filed by the lender against the current owners.
i)Current owners may cure the default or
ii)Negotiate a Loan Modification or
iii)If they do Not Qualify for Loan Modification ...short sale the property or
iv)Deed in Lieu of Foreclosure or Lender may foreclose
This opportunity starts the day the Notice of Default is filed and continues until the owner resolves the problem or the property is sold. Every Pre foreclosure that is sold or cancelled is removed from the lists. It is no longer a preforeclosure opportunity, so there is no reason to waste your time or the owner's. All properties sold or Preforeclosures cancelled are removed from the lists. In the event that an auction is not scheduled, preforeclosures are removed after 120 days after the Notice of Default is filed.
The real opportunity is at stage iii) ...to present an offer to the owner and get the lenders approval for a short sale.
Bank Auctions
The trustee sale is ( when the lender forecloses) and is also denoted as Bank Auction on the properties
This opportunity starts the day the Notice of Trustee Sale is filed and continues until the auction is cancelled, or the auction is held and the property sold. Foreclosures scheduled for auction can be postponed up to 1 year in California, while other properties are cancelled immediately. By tracking the auctions only active auction properties remain - making the data live and fresh.
It is most risky to buy properties in the Bank Auction stage.Also in most cases the amount owed is much more than the property is worth ....so it ends up with the lenders
Bank Owned
By tracking the auctions, these lists of bank owned opportunities appear within hours of the actual sale . To keep our data fresh REO properties 120 days after the foreclosure auction are removed as they should be available in the MLS by that time.
We use the services of a third party vendor for updating our lists and cannot guarantee complete accuracy.