Cash Offers To Bank Owned Foreclosure

I'm looking at a foreclosure that's currently bank owned and listed close around 70% of ARV (which i think means after repair or retail value). This property would need about $20k in repairs to make it marketable, and still leave a tidy profit range. This would be my first deal.

The bank indicates they'll take a cash offer. Would they be open for some seller financing (or a balloon) payment in 6 months? Has this ever worked before?

If not this it's likely I'll have to persue a hard money lender. Any suggestions?

Comments(6)

  • cpifer6th May, 2004

    Hey ,

    Ya never know unless ya try!

    C- :-o

  • Dmitry6th May, 2004

    Just keep in mind that HM lender will not finance more then 70 % of FMV.

    Dmitry

  • myfrogger6th May, 2004

    Unless the bank is a local bank it is nearly impossible to try for seller financing. You should work with a mortgage broker or hard money lender and get the funds that way.

    Better yet buy it with cash and then put a loan on the property once you close.

  • bgrossnickle6th May, 2004

    So the property has already been through foreclosure and is now owned by the bank - also called an REO?

    What is the ARV - after repair value? How did you arrive at this number. What is the current as-is value. Do you feel comfortable with your 20k repair estimate?

    Sure the bank will take cash. But do not look for a bank to do anything creative like holding a note.

    Brenda

  • traderboss7th May, 2004

    myfrogger is probably write that I should persue the hard money lender...

  • tinman17557th May, 2004

    I would try to get a line of credit.

    Lori
    [addsig]

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