Why Do Properties Become Inactive on Pre-Foreclosure Listings?

by admin on September 13, 2010

Question:

Why Do Properties Become Inactive on Pre-Foreclosure Listings?

Answer:

Most of the time, a property will become actively for sale before the foreclosure process and then removed from the market until the foreclosure proceedings are completely accomplished. There are many reasons for the inactivity of the property such as the bank’s choice, seller’s choice and a lot more. Sometimes, the bank that holds your mortgage will terminate a listing agreement with a real estate firm. This is done for them to let their preferred real estate company list the property post foreclosure.

Many times, the bank and a real estate company or agent comes up with an agreement allowing the company or agent to list foreclosed properties for them. Many cases involve the sellers terminating their agreement with their agent. Sometimes sellers get discouraged and thinks that there is no way they can sell their property prior to foreclosure even if they have listed their house for sale already. Therefore, they terminate the agreement and removes the house from the listing.

The property may also be inactive in the pre-foreclosure listings if the state allows redemption rights. During the redemption period, the borrower can reacquire the foreclosed home once he pays the original debt in addition to the loan fees and interest.

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