As of November 2019, there were 11 foreclosures available in Utah and Salt Lake counties. In the last year, of the 27,000 homes sold in Utah and Salt Lake counties, 77 were foreclosure homes. One quarter of one percent.
What does that tell you about foreclosed homes?
They are RARE. It takes a lot for a bank or the government to foreclose on a property and there are a lot of rules about how foreclosures are managed. There are two types of foreclosures- those that are HUD homes (Fanny Mae or Freddie Mac homes) or bank owned homes. HUD homes have a 10 day open period for bidding and a 45 day closing period. Bank owned properties each have different rules depending on the bank.
So- if you want to get a foreclosed property, I recommend working with a very active Realtor, someone who will be checking daily for foreclosures and can send you the information you need quickly so that you can have an edge on being able to purchase the property.
Now, let’s talk about a foreclosure related scam- Zillow’s ‘pre-foreclosure’ homes. If you default on a home loan payment (make a late payment), that is public information. Zillow mines and then publishes this information as a ‘pre-foreclosure’, with the logic that if someone is late on a payment, they will then foreclose. Not only does this rarely happen- if you sign up to watch or follow foreclosures, Zillow will collect your information and sell it to a Realtor.
If you’re looking for a good deal on a home, shopping in November, December, and January will be more likely to get you a motivated seller who is willing to give you a deal. These are often better than foreclosures.
Have any questions about foreclosures? Feel free to reach out to me!