Foreclosures FAQs
Q: What is a foreclosure?
A: A foreclosure commonly referred to as Real Estate Owned (RE0) or bank-owned property is a property that has been in default with past due payments, unpaid property taxes, or both. The Lender owns the property.
Q: What are some Lenders requesting from Buyers when selling a foreclosure in northern California?
A: Properties in foreclosure are typically "AS-IS" properties. Buyers are being asked to provide 1%-3% as an Initial Deposit. Loan contingencies are ofen being asked to be removed as soon as earlier than normal, sometimes in 10 days, after acceptance by Seller and Buyer.
Q: What kind of paperwork do foreclosures have?
A: Each lender may have their own written contracts when selling a property. The most popular contracts are provided by California Association of Realtors. The Transfer and Disclosure Statement may not be provided in REOs. Typically a Natural Hazard Report, Smoke Detector, and Water Heater Disclosure are provided.
Q: Is a short sale like a foreclosure?
A: No, a short sale is still owned by the Seller. There is an attempt to try and sell the house prior to foreclosure. In a short sale, the seller is applying for acceptance based on the selling price being lower than the total outstanding loan.
Q: May I use the same Realtor for a short sale and as a foreclosure?
A: Typically a different Realtor is assigned to list a property in foreclosure. They have an established relationship with the Lender.