Dealing with the bank on foreclosures...
My wife and I are attempting to purchase our first foreclosure and have a couple questions:
1) It's my understanding that the bank "can't be in the RE business" thus, not intentially make a profit off of a home they have foreclosed on. However, we are looking at a home that we know that the foreclosed amount is right around 100K, yet the bank has listed the property on MLS for 167K - essentially market value. How is this if my first statement is true? If my assumption's not true, let me know...
2) Let's say the bank foreclosed on 95K and the property is listed at the aforementioned 167K - will they just laugh if I submit an offer at 95K?
Your thoughts are greatly appreciated...
Terry
eh? Don't think so. If the bank has foreclosed on the property, then they hold title in their own name. They are in business to make a profit any way that they can, and selling something they own to make a profit is what capitalism is about.
Your thinking that they're not supposed to be in the RE biz.... actually, they are, but they'd rather stick to the loan biz and collect the dough. That alone puts them in the unique position to consider any and all offers on the table to dump this lose-lose situation so they can get their money back.
just my 1 cent.
tndball,
I agree with Wendy! If the course is not to unreasonable for you, and you think this guy is legit - it sounds like a good opportunity to get some starter money and learn the business.
Wendy - Could you also send me a copy of the flip course? I can never learn to much..
CMoore
tndball
I find that bank REO's when first listed normally do not do a deep discount as your offer would be.
The longer they sit on the subject property the more negotiable they are.
Just a hint, banks have a habit of unloading REO's before their year-end's also when a quarter ends.
[addsig]
Guys, stop working the REO's and get to the homeowners before the foreclosure sale. Then do a short sale with the bank, learn your scripts.
Bill Twyford
Quote:
On 2002-12-12 03:01, tndball wrote:
My wife and I are attempting to purchase our first foreclosure and have a couple questions:
1) It's my understanding that the bank "can't be in the RE business" thus, not intentially make a profit off of a home they have foreclosed on. However, we are looking at a home that we know that the foreclosed amount is right around 100K, yet the bank has listed the property on MLS for 167K - essentially market value. How is this if my first statement is true? If my assumption's not true, let me know...
2) Let's say the bank foreclosed on 95K and the property is listed at the aforementioned 167K - will they just laugh if I submit an offer at 95K?
Your thoughts are greatly appreciated...
Terry
most banks seem to sell the property for what it is appraised for, rather than sell it for the owner owes on it. I've ran into this problem before.