Frequently Asked Questions

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If the property is in pre-foreclosure (NOD, LIS), how do I buy before foreclosure?

When a property is in pre-foreclosure (NOD, LIS), the owner still has a chance to stop the foreclosure process by paying off what is owed or by selling the property. The pre-foreclosure period can last several months, so you may need to be patient when trying to contact the owner in default.

After first calling the Trustee listed on RealtyTrac and confirming the property is still in default, you should contact the owner and let them know of your interest in the property and try to arrange a meeting with the owner to discuss a possible sale and to get a better look at the property.

Click the Contact Owner link on any Pre-Foreclosure or Auction Property Details page and send postcards directly to owners in default with an offer to buy before the property is sold at public auction. Subscribers can print and mail the postcards or have RealtyTrac mail the postcards for a nominal fee. You could also search information to try to find the owner's phone number. Some people also approach the owner in person, which we do not recommend unless you are experienced doing that.

To determine how much you will pay the seller for the home, you should subtract all your costs as a buyer (loan balance, additional liens, repair costs) from the estimated market value of the property and use that number as a basis for your negotiations with the owner. If you reach an agreement with the owner, you will need to make sure you cure the loan that is in default and satisfy any other liens.

You can use RealtyTrac's Xamine Worksheet to calculate the market value, outstanding liens and repair costs for a property. You can also use Xamine to check if a property is listed with a real estate agent. On any Property Details screen, in the upper right corner click What's Next>Evaluate Property.

Keep in mind that a property in a pre-foreclosure status (NOD, LIS) is not necessarily for sale. The owner may be pursuing other options to cure the default; however, an offer from a pre-qualified cash buyer may be the best solution to get the owner out from under the impending foreclosure. You can also make an offer to the owner prior to the scheduled auction date even if the Notice of Trustee Sale (NTS, NFS) has already been filed.

Foreclosure is a legal process that allows a lender/bank to take possession of a property due to non-payment of a loan that is secured by that property. RealtyTrac posts properties that have already been foreclosed (Bank Owned) and properties that are in the foreclosure process (Pre-Foreclosure, Auction). Buyers have three opportunities to purchase property during foreclosure.

RealtyTrac is the largest online marketplace for foreclosure and pre-foreclosure properties and is one of the top five most-visited real estate portals on the Internet. Subscribers have access to more than 500,000 pre-foreclosure, auction and bank-owned properties nationwide. RealtyTrac also provides tools and resources to help in the process of buying a property. Subscribers can get pre-qualified for a loan, contact a local real estate agent, send postcards to owners in default and order reports to research and analyze properties.

Frequently Asked Questions

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