Real Estate Rentals

When A House Shows As Being In Foreclosure But States That It Is Inactive, What Does That Mean?

I hope this helps. Sincerley, Leah Augusta, GA

A: My first question is where are you looking? If you are looking at Realtor.com, it shouldnt be showing up unless its active. If you are looking at public records, many homes will show as in foreclosure but will not be listed for sale. A foreclosure is a process that starts with the the lender initiating the process. Once the process has been completed it will then be considered foreclosed upon. Even then, a lender may not put the property on sale for quite a while. Once a foreclosed property is put on the market as active it is known as an REO or Real Estate Owned by the lender. Feel free to contact me with any other questions.

A: The assumption is that you saw this information on a MLS listing. If so, the inactive means it is no longer for sale.

If it was at an auction house, then contact that vendor for its definition of inactive.

A: The house has not been turned over to a Realtor to be placed in the MLS.

A: I would be happy to answer but given the caveat that the MLS system utilized in AZ may be different than in my area of Florida Brevard County. When you say in foreclosure, do you mean the house is being short sold (the seller owes more than house will sell for and seller does not have the money required to bring to the closing .. hence the bank must) or are you looking at REOs (bank-owned properties)? I assume short sales that are in the process of foreclosure since almost all are. It most likely indicates that the short sale property has a contract in place and either is in contingent status which usually continues to show as active, where various third party approvals are still needed before it can go to pending or it might be in pending which says all parties have agreed to close and have come to terms and all are heading down the path to a formal closing or it would be conditionally withdrawn for some reason, i.e. among those not allowing showings at the moment for some reason or multiple other reasons. Hope this helps.

A: This could mean that the foreclosure process has started, that the Seller is trying to sell the property during the process and prior to a Trustee sale (in California), and that an offer may have been submitted by a buyer and accepted by the Seller.

A: It depends where you find the information, but most probably it means the house is not available for sale any more and that could be for a number of reasons.

A: The nomenclature or lingo that the Arizona Realtor association uses is different from the rest of the country. I would call your local real estate office and ask the same question it is probably in the process of getting the foreclosure itself in order and ready to sell (could be confirming the sales price, getting tenants evicted, repairs made to the place prior to going on market, etc)

Thanks!

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