If you are a homeowner who needs information or help with what options are available when a foreclosure is happening, please give us a call or email us at helpdesk@shopprop.com and we will try to arrange a potential short-sale.

Buyers of Foreclosures and short-sales

Have you thought about buying a foreclosure or doing a short-sale? Why not let ShopProp do the work for you?
Free foreclosure/short-sale search

How it works:

Foreclosures

1. Search our data base for properties you are interested in and then drive by to eliminate potential problem properties.
2. When you find a property you may be interested in bidding on, give us a call and we will provide you with additional research, potential liens on the property, whether it is a first or second foreclosure, CMA on the property and what it means to you at auction.
3. We will suggest some lenders for short term financing at auction.
4. We will go to the auction for you or with you. We will help you bid on your property or do it for you via cell phone.
5. When your property is ready to list you can do it right on ShopProp for $995 plus SOC.

ShopProp charges 2.5% for this service when you purchase the property at auction.
Free foreclosure/short-sale search

Short-sales

1. Search our data base for properties you are interested in and then drive by to eliminate potential problem properties.
2. When you find a property you may be interested in, give us a call and we will provide you with additional research, potential liens on the property, whether it is a first or second foreclosure, CMA on the property and what it means to you when doing a short-sale.
3. Hopefully through negotiations we can work out an option that works for everyone.
4. When your property does close you can list on ShopProp for $995 plus SOC

ShopProp charges 2.5% for this service when the property closes.
Free foreclosure/short-sale search

Short-Sales

A short-sale is simply negotiating with the home owner's current lender(s) to accept an amount that is less than they are owed. These properties are generally in foreclosure or the owner needs to sell their property.

ShopProp will put help you negotiate the short-sale and put together the short-sale package for you. Remember a lot of this information needs to be provide by the seller which can be a difficult and sometime impossible task:

A letter of authorization (LOA) for the seller authorizing their lender to discuss their loan with us on your behalf.

A fully executed purchase and sale agreement contingent upon the lenders approval of the short sale. Note: Lenders want as clean an offer as possible. Therefore, do not add a lot of contingencies or other subject-to's.

• An estimated HUD-1 settlement statement showing an accurate statement of costs and a net-payoff to the lender.
• A hardship letter from the seller accurately describing the reasons why they are in foreclosure and why they are not able to make the mortgage payment in the future.
• A financial declaration spreadsheet from the seller itemizing their monthly income and expenses.
• 3-6 months of seller bank statements.
• Two years of seller's tax returns.
• A property condition and repair estimate.
• A Broker’s Price Opinion (BPO)-comparative market analysis

Search Foreclosure and potential short-sales nationwide (we currently only offer this service for Washington residence)

ShopProp charges 2.5% for this service only when the transaction is closed.

Foreclosures

A foreclosure allows a lender or beneficiary to recover the amount owed on a defaulted loan through the public auction of a property.

Foreclosure can end in one of the following ways:

• The borrower reinstates the loan by paying the defaulted amount during the pre-foreclosure period.
• The borrower sells the property to a third party during the pre-foreclosure period; allowing the borrower to pay off the entire loan amount and avoid having a foreclosure on their credit history.
• A third party buys the property at the foreclosure auction.
• A third party buys the property at a public auction.
• The lender or beneficiary takes ownership of the property at the foreclosure auction.

Steps to Foreclosure
During the foreclosure period various actions must occur before the property can be sold at auction. At any point in the process a foreclosure can be stopped or the sale date can be postponed.

The foreclosure time line can be broken into four stages:

• Pre-Foreclosure Period (Notice of Default): This is the time to research the property, determine property valuation, and possibly contact the owner to negotiate a pre-foreclosure sale.
• Foreclosure Period (Notice of Trustee Sale): The auction day is scheduled, but is frequently postponed due to:  
   
  • Bankruptcy
  • Title disputes
  • Debt disputes
     
    • Delays can be hours, days, or weeks, so it is important to track the property status.
• Auction Day: It is important to do proper research prior to auction day. Public auctions are where the property is sold "as-is" on the court house steps. Buyers usually must pay in full at the time of purchase, so you must have "cash in hand" or arranged special foreclosure funding.
• Post Auction: Properties are owned with a free and clear title by the winning bidder. There can be some exceptions if there are other judgments against the owner of the property. We do research this as best we can, but when you deal with foreclosure there are risk like these associated with them.

ShopProp will charge 2.5% to help you through this process.