Best Way To Obtain Preforeclosure...
I just came across a property where owner has missed two payments and owes this years taxes. Here are stats:
Owe 179k on 1st
Missed 2 pmts $1,500 each
Owe 2k taxes
Total owed: $184k
Owner has appraisal of $224k
I got comp from title company of $160k
Can I negotiate with bank to lower sales price, or do I have to wait till it goes to foreclosure?
What is best way to make this deal happen?
Property isr residential house in commercially zoned area. Does this create lending problem?
I would take a look at the owners appraisal and drive by the comps that are on the appraisal and see for myself.
I would also check with a realtor and see
what that type of house is actually selling for? An appraisal doesnt mean anything to me, especially from an owner, I could give you an appraisal on my doghouse for $100,000! Do some investigating
yourself.
In terms of negotiating with the bank for a lower price, you could potentially do a short sale.
In terms of being a residential house in a commercial neighborhood, some cities have laws that state once a house has been vacant for a certain period of time, it can never go back to SFR. You
need to check with the city.
My advice to you is do your homework!
Good Luck
Jeffrey Adam
_________________
"The only place success comes before work
is in the dictionary."
[ Edited by JeffreyAdam on Date 01/22/2004 ][ Edited by JeffreyAdam on Date 01/22/2004 ]
Hi jvdesanto,
As Jeffery said, appraisal can vary under many conditions and circumstances. I would much rather have a current list of sold comps in the neighborhood for the past 6 months. You can call any realtor and ask them to email or fax the comps to you. You can then make your own determination of value.
If you are thinking about doing a short sale, the bank probably wont consider it until after the foreclosure is filed. If they are two months in arrears already, it will most likely be filed soon.
If the bank however comes in with a BPO of their own in the $220's, it may be just the same as the payoff. Many varying factors of course, but your main efforts should be to make sure that the banks BPO comes in soft.
Best of Success!
BAMZ
Thanks for the advice!
This may sound dumb...but what is BPO?
A BPO is a Broker's Price Opinion - which is a type of short appraisal. Banks get realtors to do these. It's not an "official" appraisal like what's used for a loan, but just a little surface treatment to give a bank a basic idea of value.