Is this Bank owned since its pre foreclosure

[Edna Diaz]

Home inherited by children from mother.  They plan on listing it with a realtor yet zillow says its in pre foreclosure. So my question is> Is this owned by the bank or could this be a potential wholesale deal if she gives the realator the boot?  40,000 owed on mortgage valued at 70,000. Repairs 15,000. Arv 120,000 

[Ehsan Rishat]

Hi @Edna Diaz! Pre-foreclosure comes before foreclosure. They have not been able to pay their mortgage which has lead to a case being filed against their property, by the bank. The bank does not yet own said property. When the property becomes a foreclosure the bank gains ownership and may or may not sell the property. 

Now, about whether this is a potential deal or not, of course it is! Foreclosure and pre-foreclosures show great potential because they tend to have motivated sellers. These people are in a state of distress and would like to get this process over with. In my opinion this seems like a good deal if executed properly.

Hope my answer cleared all your questions. Good Luck!