Foreclosure on the MLS

11 Replies

I'm curious how a foreclosed home is still on the MLS with a chance to buy? I've been watching this home since it was on a pre-foreclosure list, it has gone through auction, and is now for sale on the MLS by the owner.

As this property is in Kansas there are redemption rights to be wary of and this one didn't really meet the numbers I was looking for, but if it did:

  • Can it really be pursued, since it has already gone through auction?
  • What are special considerations when purchasing these types of homes?
  • Who really owns the house at this point (post pre-foreclosure, post auction, pre-bank owner)?
  • How could this be pursued before auction?

You have conflicting statements....if it has already gone thru the foreclosure auction, I assume the bank owns it and it is a typical REO.

I don’t get the;

Who really owns it?

How can this be pursued before the auction?

@Wayne Brooks , I'm a bit confused on this scenario, too. Through a resource, I saw this was headed to foreclosure and from what I understand I could have gone to the home owner and attempted to settle any payments (mortgage, tax, etc) to obtain ownership. This appears to have gone through auction proceedings (I don't have all of the details, but @Janet Chou may be able to fill in some of the gaps) and didn't get bought at that time. It is now on the MLS, being sold by what appears to be the home owner. Thoughts?

@Aaron Winters - In Kansas, there's something called the redemption period. Basically the house has been auctioned/foreclosured. But the owner has 12 months (or shorter if the bank finds the owners abandon the property) try to sell it to cover what they owed. If the redemption period expired, no one purchased the house, it'll go to the bank and become REO or the person who won it in the auction.

I have seen a few scenario's like this and the answer could be any one of a hundred different answers. There is a chance that it was scheduled for foreclosure but prior to the auction it got pulled in order to let the owner do one of the following: deed in lieu, short sale, or bankruptcy. It could also just be a listing that hasn't been updated yet, so isn't really active. 

I have also seen sellers not understand the process and list their home with an agent to sell, but technically the home has already been foreclosed on but they haven't taken possession yet. 

I don't know the details about that area or state, so these are just ideas that may help. Good Luck with it! 

I got some clarification on this one: was bought at the auction sale but is in midst of the redemption period. Previous owners are still in the house attempting to sell before this time runs out.

Originally posted by @Aaron Winters :

I got some clarification on this one: was bought at the auction sale but is in midst of the redemption period. Previous owners are still in the house attempting to sell before this time runs out.

 So could you get conventional financing on a house in the redemption period?

That is an excellent point, title insurance may be impossible to get with an impending foreclosure and potential other problems. If you do consider moving forward go ahead and have the attorney/title company do the title search early on to make sure to get good and marketable title and it can be insured. 

These kinds of things really make you think!