Pre foreclosure properties are advertised a lot on Zillow, and one of my clients recently asked me about them, so I thought I’d write a blog post on the topic.
Pre Foreclosure Properties Explained
A pre-foreclosure just means that a homeowner is in default, and that their bank has started foreclosure proceedings against the owner. This information is public domain, which is why Zillow is able to access it. However, this can be a long process, as the owner first has a chance to get current on their mortgage note.
Zillow advertising “pre-foreclosures” is actually a pretty clever marketing tactic on their part. It’s a way for them have more pages on their website in addition to their home sale listings, which increases their website traffic from Google and the other search engines. This allows them to sell more advertising to real estate agents who pay to be featured on their web pages.
Regarding foreclosures, true foreclosure auctions carry a lot of risk, as they are often bought sight unseen and always with 100% cash. I have a lot of experience with bank owned properties (often called "foreclosures" on home search websites) and short sales. A bank owned sale happens when the bank owns the property after a foreclosure. Bank owned sales can be a great way to purchase a property for below market value, however they often aren't in the best condition and need some work.
Would you like more information on buying a foreclosure? Contact me today to find out if this is a good option for you. Call me at 703-462-0700 or email me at DarrenRobertsonHomes@gmail.com.