The truth about Pre Foreclosures

If you are on the hunt for a new home in Massachusetts, regardless of the town, you are registered with multiple sites and you’ve seen the captions “Foreclosure”, “Short Sale” and “Pre-foreclosure.  Two of these are actually for sale, one is not and that is the Pre-Foreclosure.  You may think that pre-foreclosures are homes for sale by owner, but they are not.  You may also think you should subscribe or pay for a list of pre-foreclosure providers.  Or even wonder what exactly does pre-foreclosure mean?!
Pre-foreclosures are just that – pre-foreclosure.  It simply means that the lender for the homeowner has filed a notice to Foreclose (Soldiers and Sailors Civil Service Relief Act or Complaint to Foreclose) with the Country Registry of Deeds.  This public record information then gets pumped into consumer websites like Z****w, R*****Trac, etc.  These websites do NOT have access to the multiple listing service (“MLS”).  They rely on feeds from public records only to attract users to their website. So when a homeowner defaults on their mortgage significantly enough that the lender has recorded or filed this Notice of Intent to Foreclose with the County Registry of Deeds, it becomes public record/notice.  Because the consumer websites rely on public information, the recordings thus become public information and placed on their websites giving the image that they have “more” inventory than other websites.

These homes are NOT for sale.  The homeowner could still pay the mortgage current or file bankruptcy.  Should they not do any of these, then the property will go to foreclosure.  This could take years for the foreclosure sale to  occur and for that property to come on the market for sale as a Bank-Owned or REO property.

I do not recommend approaching a homeowner that is in a distressed situation yet I see that advice on the consumer websites.  There are so many “bewares” about this, but the obvious is that the homeowner will NOT be happy that someone shows up on their doorstep and saying “HI, I know you can’t pay your mortgage but can I buy your house?!” Try putting yourself in that persons shoes and imagine the reaction you would have should this happen.

Try using a Real Estate Brokerage website for homes that are for sale in Massachusetts and Rhode Island.  A real estate brokerage website will have the properties that are actually for sale because we pay dues and fees to be a member of the MLS and that is where all listings begin which, in turn, gets fed to all websites so why not start at the source!

Visit: KTTD Realty Group if you are thinking of selling your home in Massachusetts  Our team will expertly guide you through the process and handle the details so that your transaction will be as stress free and painless as humanly possible.

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