Why Are The Foreclosure Properties That Charlotte Home Buyers Find NOT For Sale?
Q: I recently found this property listed as a foreclosure on a national real estate site. Can I see this property? I have cash and am ready to buy it TODAY!
A: The property in which you are inquiring is either bank-owned or quite possibly, not for sale now, nor will it be in the foreseeable future. Information that you have found from online aggregate sites often mistakenly advertise that the bank has foreclosed on a particular property. That property, if it is bank-owned, will be placed on the market just as soon as the bank and their attorney complete the foreclosure and listing process.
These aggregate sites provide information based upon the foreclosure sale date and then calculate their own fair market value. The condition of the property is not taken into consideration when calculating this ‘fair market value.’ The bank will, at a later date, and with conjunction with their Realtor® representative, go through their OWN evaluation process following the foreclosure and before placing the property on the market.
Q: How long does this process take?
A: Some are listed as quickly as 30 days, others take over a year before the final evaluations/assessments are made and the home is actually listed for sale on the market.
Q: Can I see the property anyway?
A: No, I cannot get you into the property to view it prior to the bank completing their foreclosure and evaluation process. This is a liability for the banks, for which they are not willing to accept. No one can get into the property and if they tell you that they can, BUYER BEWARE!
Q: Who is going to market the property?
A: We do not know who is going to market the property. The bank could use one of several of their own listing agents or an investor could be the one who hires the agent, or if it was a government loan that originally defaulted, the property could go back to the government for them to sell (as in HUD).
Q: How can I learn more about this foreclosure property?
A: Because there remains a lot of unknowns with regards to this property, it is best to have your Realtor® track the progress and be on alert for the listing of it in our own MLS. I am happy to track the property and let you know when it becomes available.
Q: How do I avoid the ‘fake’ listings?
A: Utilize a LOCAL real estate property search. The aggregate sites pull from a couple of national data mines which exist primarily to make money. How do they make money? By listing these ‘bogus’ listings and when an inquiry is made, they then sell the inquiry (could be YOU!) to real estate agents who buy leads. Obviously, there’s not a property to ‘sell’ right now and there is a good chance that the particular property may not even be for sale for many years.
Another occurrence with these aggregate sites is that oftentimes the listings remain on their sites even AFTER they’ve sold! Foreclosures, re-sales and all properties are not accurately updated, many of which have already Closed and the new owners have already settled in nicely in their new home!
I recently received an inquiry to a property which I happened to know was not for sale OR being foreclosed upon. I phoned the seller, who is still living in the home, had paid cash for the home and has no other liens on the property. The data gave the owners’ TAX value as the value of the home! WHY? Because in Mecklenburg County, we pay taxes in arrears. Some, in fact, MOST of us choose to pay our taxes at the latest possible date without incurring a penalty. So, on January 5, 2012, we’ll be making our real property tax payments for 2011. This time of the year, the foreclosures listed on the aggregate sites are increased by 50%!
Rest assured that mansion listed for sale on the lake for $24,507 is a farce! That is the amount of taxes owed on the property for 2011 and the owner, who has no mortgage on the property, is wisely opting to hold onto his $24,507 until the final day that he can, without penalty, pay his real property taxes in Mecklenburg County!
If you’d like to search Charlotte foreclosures that ARE truly for sale, search foreclosed and REO homes for sale on our local site. Give us a call for any questions that you may have with regards to local foreclosures. We’re in touch with the local market and can accurately share information on Charlotte foreclosures.
