Forclosures

[Shawn J.]

I am looking at foreclosures and have some questions. But here is a scenario first. This is only one property described below.

: Property set for short sale at $285k --- on market for 3 months, No buyers...
: Property forecloses @ $282k --- next day it is on market for $280k and is on the market for 14 days with no buyers... property pulled off market
: It returns to the market as a Fannie Mae property in HomePath, 3 months later for $397k!

Market value after repairs and updates is about $425k

I visited this property, and it is in need of about $130k to get it to be worth $400k... (in the kitchen, there is actually no flooring, missing ceiling drywall, and no countertops) So current value is around $250k to $270k.

Question 1: Why would they ever price it that high if they foreclosed at $282k and had it on the market for 14 days with no bites? How is $397 even enter in their minds?

Question 2: What is the actual process that a home goes thru during forclosure? Seems like in this situation there is some seriously greedy people involved.

Question 3: I am looking at another HomePath (Fannie Mae) property tomorrow, is this even worth my time? My Realtor I am working with is saying this is pretty typical type situation with Home Path properties.

Question 4: What is the best methodology to go after foreclosures to get deals?

Sorry for so many questions, but I am trying to take some action and coming up empty.

Thanks much!

SJ