Buying a Pre-Foreclosure Home
First things first, Boulder Zillow pre foreclosure homes are oftentimes not even for sale. Think about that. You can Zillow homes that say, “Pre-Foreclosure!” And yet, these houses are likely not for sale.
And never will be for sale either.
Normal Number of Boulder Foreclosure Sales
Searching Boulder Zillow there are dozens of red dots and accompanying write ups on pre foreclosure sales. Compare this with a Boulder MLS search of actual foreclosures in the county. Today out of 1,062 Active homes for sale, there is one foreclosure sale.
You read that right, just one place, bank owned, for sale.
But what about all the red dots on Zillow? Most of these are not in foreclosure and unlikely to ever come to the market.
Why Do Homes Land On Boulder Zillow Pre Foreclosure List?
Whenever a home owner finds him or herself in arrears on a mortgage payment, this information is reported from the lending institution to the county. The Boulder county Trustee then starts the foreclosure process.
Step one of that process is adding the house to an ongoing list of distressed owners. A number of other specific things have to happen for the house to actually be foreclosed.
Frequently, long before most of those things can occur, the owner catches up on their mortgage payment and the trustee removes the property from the list.
Zillow Immediately Publishes The Boulder County Trustee Foreclosure List
In the race to have the most listings on their websites, online real estate aggregators publish the trustee list and create Boulder Zillow pre forclosure homes for sale. Its not uncommon to see homes listed one day and off the site the next.
The Myth Of Getting Rich Buying Foreclosures
Sure, some distressed owners do sell to avoid foreclosure. If you are going to pursue this angle, be ready to put in a lot of work on a wide variety of properties to find your frog. Kiss frog, get prince/princess.
The vast majority of Boulder zillow pre foreclosure houses never come close to having to be sold. The owners simply catch up on their house payment. End of issue. For the handful that cannot catch up, a sale may be necessitated.
Regular Sale Long Before Foreclosure Sale
In Boulder County, where we have a well documented Sellers Market, even these distressed home sellers are likely going to have time to get top dollar on the sale of their house. The vast majority sell, clear their mortgage debt, go along in life.
Its highly unlikely an owner is going to under price their house in this market. My lease favorite part of real estate? Dashing hopes of friends and clients lured in by too good to be true marketing.
Like the Boulder Zillow pre foreclosure places. Places that really are not for sale and never will be. And certainly not at the fairy tale prices listed online.
Steps To Buying A Boulder Foreclosure Home
A home owner needs to fall into arrears making the mortgage payment. This has to last at least three months. At that point, the trustee can place the home for sale – an auction actually.
It is not listed in the Boulder MLS, but rather is set for auction by the county. Anyone can bid on the home, but the winning bid must pay in cash the day of the auction. There are no mortgages involved.
In practice, banks usually outbid others to get the property, but if you are willing to outbid the bank, you could win the auction. But this is far different than the original premise – that you saw a steal online and want to get rich quick buying and selling a foreclosed home.
Why I Wrote This Post
I keep having a similar conversation with friends and clients. People just like you tell me they want to get a Boulder Zillow pre foreclosure and then I have to explain it doesn’t exist. No more than flying unicorns. And I’m the bad guy for delivering this terrible news.
I don’t think I can stop a giant company from misleading information. But I hope I can shed some light for home buyers seeking a good value. A good value is not getting your hopes crushed by a ridiculous marketing ploy, but really understanding the housing market to start.
Give me a shout to start your home search! ~ Bob