Okay Zillow. I can deal with you saying every house has a carport. I can deal with your inaccurate Zestimates. I can deal with you often messing up school districts.
What I can’t deal with though are the Pre-Foreclosure listings.
Why? Because they ARE NOT FOR SALE!
Zillow, people see a house on your site and think it is for sale. Why do you confuse the public and leave it to us agents to explain to our clients that the house you just posted is not for sale?
Here is what is going on with those Pre-Foreclosure listings. The person who owns the house is far enough behind on their mortgage payments that the lender has filed a lawsuit. As soon as that happens, Zillow posts it as a Pre-Foreclosure. Since the person who owns the house is not the bank, you cannot go see it since it has not been foreclosed yet.
If the lawsuit goes the way the lender wants, the house will eventually be sold at the Master Commissioner’s sale. The Master Commissioner is who is appointed by the court to sell the house. Anybody with 10% down and proof of the remaining funds can go bid on the house. You have to have the funds available. You can’t go down there with 10% down and a preapproval letter for a mortgage. You have to show proof that you have the balance of the money available. You also can’t see the house. You have to buy it without any type of inspection contingency.
There are two types of buyers at the Master Commissioner sale: Investors and the Lender for the house. Sometimes investors get the house. Most of the time the lender buys the house. Well, we call it a sale but in all reality what is happening is the money the lender pays for the house goes to settle the debt the seller owed them so they are getting it right back. Picture a dollar getting pulled out of your left pocket and going into your right pocket.
If an investor buys it, most of them either flip it or rent it. If the lender buys it, it eventually goes on the market for sale. This time when you see it on Zillow, it will really be for sale….and it will probably say it has a carport. And the Zestimate will be inaccurate.