Okay how this works, the bank tells the list agent what they would like to have for these properties. The list agent prices them accordingly. For the most part these type properties are reduced when they are put on the market. Then offers are taken. Some times there will be multiple offers.

Here's the catch.....After an extended period of time you may have as many as 4,5,6 offers which in turn drives the prices up. The bank tells the list agent to advise a potential buyer to come in at their highest and best offer.

Most of the time (specially in West Knoxville) by the time it is all said and done the bank will get well over the list price for a property. This is what most people do not understand about Foreclosures. If a foreclosed property is in turn key, move in condition most of the time a bidding war between multiple potential buyers will drive the price up to a fair market value price.

Distressed properties will sell for much less because it is understood by all parties that money will have to be spent on that particular property to bring it out of a distressed state. So as a whole is will ultimately be a numbers game for foreclosures in West Knoxville. In less populated areas, or more rural/remote, areas foreclosures present themselves as more negotiable because the demand to be in that area is lower.

Foreclosure Timeline This property is in the Notice of Trustee Sale phase of the Foreclosure process (highlighted in red).

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Day 1: Notice of Default (NOD) recorded. The defaulting property owner has 3 calendar months to cure, or payback the default amount, either by paying off the lien, or by negotiating a payment plan. Within 10 days: Notice of Default mailed. Within 1 month: Notice of Default mailed. 3 Months Later: Trustee schedules a Trustee's Sale (auction). 21 days later: On the date of sale, trustee sells the property to the highest bidder. This sale is usually held at the trustee’s office, or at the County Courthouse (call trustee for updates on time, date, place).

Foreclosure Status Glossary

Notice of Default (NOD): The initial document (non-judicial) filed by a trustee that starts the foreclosure process, usually after the occurrence of a default under the deed of trust, or mortgage. Both LIS and NOD are part of the PRE-foreclosure process.

Lis Penden (LIS): Notification of pending lawsuit. The initial document (judicial) filed by an attorney or trustee that starts the foreclosure process after the occurrence of default under the deed of trust or mortgage. Both LIS and NOD are part of the PRE-foreclosure process.