By: Sally Grenier, Broker Owner
Grenier Real Estate
It's about 10 years after the big housing crash, I STILL get people asking about buying foreclosures.
Here's my two cents on why this is NOT a viable option for most buyers in this market:
1. Here in the Colorado real estate market, there just aren't very many foreclosure opportunities anymore. Why? Two key reasons:
- Lending practices have gotten better and there are much fewer home owners defaulting on their mortgages.
- The housing market has recovered, home prices are skyrocketing and most homeowners are not "upside down" anymore.
2. IF a homeowner is in trouble on their mortgage, they probably can just sell their home, stop the foreclosure process and recoup whatever equity they have. Sometimes theyare able to renegotiate the terms of their loan and/or they get current on their payments and stop the foreclosure process.
3. IF a home does get through the foreclosure process, it will eventually get sold at auction. At the Trustee Sale, the property is auctioned in public to the highest bidder, who must pay in CASH. Most of these homes are purchased by banks or investors, fixed up, and then re-sold for "Fair Market Value" on the open market.
NOTE: Please DO NOT pay attention to anyone or any website offering you a "free list of foreclosures". Please DO NOT pay attention to websites like Zillow that lists "foreclosure" or "pre-foreclosure" homes that lists prices that are "too good to be true". They are. They are not for sale! The price you see is likely what the home owner owes, and not what the house will sell for at auction. Any and all foreclosure properties in the Colorado real estate market will eventually be listed for sale with a REALTOR and will be listed in the MLS (multiple listing service) which your Realtor has access to.
For information about buying or selling any type of home, give me a call!