Available Short Sales & Bank-Owned Properties on the Market
|Inside and Around I-495||Northwest and West of I-495|
|- Bethesda||- Potomac|
|- Chevy Chase||- Rockville|
|- Silver Spring||- North Potomac|
|- Takoma Park|
|- Kensington||North of the Beltway|
|- Aspen Hill and Silver Spring|
|Up County||- Burtonsville and Silver Spring|
|- Darnestown||- Olney|
|- Clarksburg||Mid County Along I-270|
|- Damascus||- Gaithersburg|
|- Laytonsville||- Germantown|
|- Montgomery Village|
The Foreclosure Process
Lots of websites list homes that aren’t for actually for sale, so understanding the foreclosure process is useful when looking for foreclsoures. If a homeowner isn’t keeping up with payments, a bank can’t simply sell the home. First, they must take title through the foreclosure process. The specifics are different in each state, but here’s the basics:
Notice of Default. To start a foreclosure, the bank must give the owner a formal notice of default. Once they do, the bank proceeds to the next step unless the owner catches up on the payments, or the bank and owner agree to restructure the loan. Once a homeowner gets this notice, the home will start popping up on popular foreclosure sites. Can you buy it at this point? Only if the homeowner wants to sell it. If so, it will likely be available for sale on this site as a ‘short sale’.
Home Scheduled for Auction. Before a home is sold at a foreclosure auction, the property will show up on the auctioneer’s website and it is advertised in local papers. It’s very common for a home’s auction to be canceled, rescheduled, canceled again, etc. Can you buy it before the auction? Same answer as above – only if the owner wants to sell it. If they do, you may not have enough time to ratify a contract and get bank approval before the auction.
Home Sold at Auction. In Montgomery County, this typically takes place outside of the Rockville courthouse. Several trustees have auctions taking place at the same time. The trustee will announce the property address and the starting big. Can you buy it? Yes! However, you probably won’t. The bank will likely have the highest bid. But if your bid is the highest, you get the home. Be aware that buying at an auction comes with many risks (too many to detail here), so you must do all of your homework in advance. Unless you know what you’re doing, auctions should be avoided.
Bank Sells Home. The auction had a winning bidder, but title has not transferred at that time. A series of steps take place that will remove the lien and transfer ownership. After that, the bank (or investor) will have title and will list the home on the market just like a regular resale. Can you buy it now? Absolutely. All REOs and investor resales will be on this site if they make it available through our MLS.
Articles related to distress sales and foreclosures in Montgomery County follow.
This bank-owned home in Finegan Farm in Darnestown came on the market in late summer. At the time I said this was a screaming deal at $1.1M. I know that they had an at least one offer over $1M in the summer, but a mix of inflexibility and unresponsiveness killed that deal. I’m sure they had others. It finally closed today with a final price – $955,000. Shockingly low. This price would be understandable if this home was in poor condition, but it wasn’t. Properly marketed and negotiated, this home should have settled for something closer to $1.2M.
October 28th, 2011 Categories: Foreclosures
This is the last part of three posts looking at short sales in Montgomery County. After summarizing available short sales, short sales that close, let’s take a look at the number of short sales currently under contract.
Just about half of all homes currently under contract is a short sale. I suppose that if a short sale takes three to four times longer to close, and 13% of homes sold are short sales, then about half of all contracts would be short sales at any given time. Does that math work? As with all things related to short sales, the math takes a lot longer to work out.
Your thoughts and comments on short sales, and the real estate market in general, are always welcome.
October 26th, 2011 Categories: Foreclosures
We frequently get calls from buyers looking for distress sales in Bethesda or Potomac. With so many home owners in distress, surely one can get a great deal in these areas. For sure, buyers can find distress sales in all price segments and all areas of Montgomery County. But distress sales are still rare in our hottest and most expensive areas. As a followup to an analysis of the number of short sales that actually close, I took a look at current inventory to see where short sales are located, and how are they priced.
The vast majority of short sales are for entry-level homes — homes priced under $400,000. And, as expected, areas in Montgomery with the biggest inventory of entry level homes have the most number of short sales. Still, higher-priced distress sales still come on the market. See all luxury distress sales – short sales and bank owned properties.
October 25th, 2011 Categories: Foreclosures
I’ve been waiting on a bank to approve a short sale for months now (one loan, one bank – you would think it would be simple). This made me wonder how many short sales actually close in Montgomery County, and how long do they typically take? And, given the difficulty and frustration involved with a short sale, how many sellers simply give up? I’ll go through my methodology below, but first, here’s the results:
Getting solid, reliable data on short sales may be impossible. To get this summary, I took a look at all closed sales so far in 2011 in our MLS. This data is good, but it’s not perfect. When an agent enters a listing in our MLS, they should note if the listing is a short sale. Many times, they don’t. And, they should accurately indicate a home’s contract and close date. This also doesn’t happen for many listings. Still, this is the best data available and still shows some interesting trends. Read the rest of this entry »
It’s rare to describe a foreclosure that ‘shows like a model’, but this is the best way to describe huge, bank-owned Craftmark home. It’s a massive home with about 10,000 square feet of living space on four finished levels. Flooring is top-notch throughout – hardwood floors on the main level, premium textured carpet and premium ceramic tile in all the baths. The kitchen has premium cherry caps, granite countertops and stainless-steel appliances. At $1.1M, this is easily the best deal Read the rest of this entry »
Home of the Week – January 17, 2011
This bank-owned property is in pretty good condition. Don’t get me wrong, you aren’t overwhelmed with “ohhs” and “ahhs” when you walk-in, but it you aren’t greeting by a wall of musty smell or drywall hanging from the ceiling. Here’s a quick overview and tour of the street.
This street tells the tale of the roller coaster that has defined our market in the last 10 years. These owners paid Read the rest of this entry »
The total housing inventory and the total percentage of distressed sales inched up again in October.
Inventory is up 2.2% from this time last month, and is over 29% higher than last year. At this rate, year-end inventory will match the levels last seen in January of 2009.
Increasing levels of distress properties indicates that our market still has more work ahead of it to get back to “normal”. Distress inventory is up 30% from January is about the same percentage from January. [Note – the values on the chart are correct, but the % calculation was corrected on Jan 2011. Sorry about that.] Here’s a breakdown of short sale and bank-owned properties that make up this month’s total:
These statistics may look at bit glum, but our market did improve this year. Watch our video that provides a comprehensive summary of our 2010 real estate market. Do you have questions about specific area of Montgomery County? Contact us and we would be happy to help.
Inventory remains super high for the most expensive homes in Montgomery County, so I expect to see distress sales for some time in this market segment. Here’s a summary of three upper bracket homes in Potomac that I previewed this week:
11752 Lake Potomac Drive, Potomac
This home is an imposing wall of bricks. It’s big with 7,000 sq feet of living on the main two levels and about 4,000 more on the finished lower level. From the street, it’s classic, regal and impressive; but the layout and finishings inside are a bit bewildering. Except for hardwoods in the library, the entire main level has granite tile flooring which most buyers would find cold and impractical. The main level has a traditional room layout, but the upper level is maze-like – I would describe it if I could. The lower level is bright and usable.
For a bank-owned property, it’s in good shape. Still, especially with a home this size, a buyer will likely make significant investments to bring out its true potential. The previous owner paid Read the rest of this entry »
Tuesdays are traditionally a day for real estate agents in the area to preview homes and hold Broker’s Opens. I took a look at a few homes with acreage in Potomac and Darnestown. Here’s my impression of the most interesting ones I saw today.
Bank Owned in Potomac
I get a lot of questions about foreclosures in Potomac. Normally, there isn’t much to report. Today’s the exception. 19 Pettit Court came on the market on July 26th, is priced at $964,900 and is listed by Long and Foster. This home has 3,900 sq feet of living space on the main two levels, sits on 2 acres and has a nice pool in back. All the kitchen appliances and some light fixtures have been removed, but it’s in good showing condition. The master suite and another bedroom is on the main level, and the upper level has 3 bedrooms. A buyer would likely update bathrooms, replace some carpet and paint. The cedar shake roof looks like it might be original (the home was built in 1978), but it’s hard to tell with cedar shake. No funky smells and no obvious abuse. Overall, I liked it. It’s definitely priced to sell. The previous owners paid $1,404,000 in 2005.
A Trip Back to the 1970s
13500 Deakins Lane in Darnestown sits on a jaw-droppingly beautiful lot of 13.5 acres. One could mistake the manicured back yard for a country club. This home really gives off a strong vibe. I’ve never met the owners, but I would bet this home has seen a lot of good times. There’s definitely a lot of love here — sounds corny, but that’s how it feels. The interior decor is a time capsule of the 1970s — the shag carpet, the bold wall paper, the wood paneling — its all here. I’m guessing that the buyer will fall in love with the lot and won’t mind bringing the home up to date. It’s currently priced at $1,395,000. Andrea Alderdice with W.C. & A.N. Miller/Long & Foster is the listing agent.
One Level Living with Nice Acreage
13520 Deakins Lane in Darnestown is listed for $1,199,000. It sits on over 8 acres and has quite a regal approach. The rooms are big and the hardwood floors are very nice. The kitchen has been upgraded and every view outside is fantastic. Built in 1964, it has some quirks. The super low ceilings in the basement reduce the utility of the lower level. I think the buyer on this home will place a high value on the main level layout and the privacy of the lot. Andrea Alderdice with W.C. & A.N. Miller/Long & Foster also the listing agent on this property.
|Call us at 301-527-9079 or send an email for more info about these homes or any others in Montgomery County, Maryland.|
March 18th, 2009 Categories: Foreclosures
In January I provided a snapshot of distress sales in Montgomery County. With a significant increase in contract volume for entry level homes, I hoped to see reductions in the inventory of distress sales. Two months later, the data strongly suggests that we may be through the worst of foreclosures from the sub-prime mortgage melt-down.
Here’s a snapshot of the number of pre-foreclosures (short sales) and bank-owned properties by area: Read the rest of this entry »
Just about every day passes with another statistic about area foreclosures. News snippets rarely provide a good perspective on our local market, so we took a detailed look at the total number of bank-owned and distress listings on the market in Montgomery County. As posted in December, we saw signs of an improving market with an increase in the number of contracts the 2nd half of 2008 compared to 2007. However, until distress and bank properties are reduced to a smaller percentage of available inventory, Read the rest of this entry »
Entry-level housing in Montgomery County is heating-up. Looking at the last four weeks, the number of contracts in many parts of Montgomery County is more than tripled compared to this time last year for homes priced under $300,000. As inventory has climbed, foreclosures and distress sales have applied downward pressure on prices in this segment.
So is this a harbinger that we’re reaching the illusive “bottom” of the Read the rest of this entry »