foreclosure on houses

[jamazon]

I recently learned about this subject and do not understand why there is such a wide range of prices among houses. Some are listed at 5k, some at 15k, some at 200k (I tried attaching a search link to realtytrac.com but couldn't). Does this mean the house is only worth 5k if I buy it from the owner (which sounds ridiculous)? But then, what about those listed at 200k?

Thanks.

Thanks.

[bwana devil]

dont know what site youre referring to, but a true foreclosure is sold by a government office (county office in my state). it may be listed at $10k. that is the opening bid on the house because that's what the previous owner owed in taxes.

the wide range is because that is the tax owed. what the house actually sells for at auction is determined by who shows up to bid and the house's market value.

bwana

[tgo007]

In the end, Houses never go for that low.

[ElaineMonster]

I am on a house hunt and looking for deals so I checked out that website. In the FAQ it states:

[ QUOTE ]
What does the dollar amount listed on RealtyTrac mean?

The amount listed on RealtyTrac is usually based on the defaulted lien amount or the transfer value. Called the Balance or Opening Bid on RealtyTrac, the defaulted lien amount is what the foreclosing lender needs to break even...

This is not the asking price for the property... The goal is to get a good bargain, but you shouldn't necessarily expect to buy the property for just the defaulted lien amount.



[/ QUOTE ]

[yellowbastard]

I was doing some research on this earlier you might find this wikipedia article helpful...
Here