11-15-2012 01:22 AM
I noticed there are websites such as Realty Trac that list Foreclosure/Auction houses but you need a registration to get access to all the details. Are these websites legit? I couldn't find those properties listed on Zillow or Redfin.
11-15-2012 08:42 AM
Realty Trac and other foreclosure websites list homes that are in the 'pre-foreclosure' state and also show their foreclosure auction dates (which are called Trustee's Sales, btw). These homes are owned by the homeowner right up until the auction date. The owner still has until right before the auction date to pay any arrears owed to the bank(s) and bring the mortgage current. The owners can also postpone the auction by working something out with the bank and get the 'Notice Of Trustee's Sale' postponed or dropped. Redfin does not show these pre-foreclosure homes as they are not for sale and quite often don't go to auction on the date that is listed. I am assuming here but think this would be very hard (and a bigger mess) for our engineers to incorporate into our website. These websites are your best bet to find a home in this status. I do think these websites are legitimate but like I said, often times the auction is postponed and I can't imagine that the information they show is always up to date.
Once a home goes to auction and is not bid on at the Trustee's Sale the lienholder in first position becomes the new owner of the home. This is usually the bank who holds the first mortgage on the home. On that day and if no one buys the home at the auction, the home becomes 'bank-owned'. Once this happens but I assume there is some delay, the homes ARE shown on Redfin. You can access them in your search by dropping down the 'more options' menu and checking the PURPLE house icon (Foreclosed Homes) under the 'Include' section. These are homes that are bank-owned but haven't come on the market yet and will say 'Not For Sale'. We get these homes from a reputable foreclosed home source. We show these homes to you to let you know that they are out there and to give you the head's up that they should be coming on the market. If it looks like something that might be interesting to you, mark those as a favorite and you should get an email notification when the home IS listed on the MLS.
Hope this helps!