We see this question a lot! Mr and Mrs Buyer have had their eye on a short sale listing for months and wouldn’t make an offer on it thinking that the price would drop again and that they had all the time in the world.
Then one day when they check their favorite search site for the thousandth time, the listing is not popping up and panic sets in. That’s when our email and phone start blowing up with inquiries about “that house on 123 Main St.”
Here’s what I’ve said so many times on the phone and in emails-
The timeline of events for this situation are as follows:
The bank that foreclosed on the property will eventually try to sell it at auction and if you have cash or would be open to a private money lender, then you can keep watch for the auction date and show up to bid on it.
If no one buys it (that happens when the minimum bid they’ll accept is too high), then it will eventually come back on the open market as a bank owned property. Sometimes the asset manager for the bank will make improvements to the property and sometimes they will not. The price will be in proportion to the condition so in theory, it could come back on the market at a higher price.
If someone does buy it at auction, 9 times out of 10 it’s an investor who will “flip” the property for profit. They’ll go in and paint, install new flooring, lighting, etc and in that case it will get listed and sell for much higher than the price we had it listed at.
These “eventually” times for getting back on the market can take weeks, months and sometimes years. Keep this in mind when you do see it on the market if you are really wanting to put an offer in.
I hope this helps and please let us know if we can be of any help with your home search.