Foreclosure
Im new at this and im considering bidding a forclosure not for resale but for myself,and im clueless, The house appraised at 200,000 in 99 they are listing it for 184,000 its a reo property ,i emailed the lender to ask ques and they said they are no where near needing the appraisal price what would be a smart bid to start at???
If they aren't forthcoming with an appraisal, just go look at the property. You can see if it is worth $200,000 or not. Also, you can lowball see what the bank is carrying for a mort also check property taxes in arrears. Give it a shot.
Where do i find this imfo at ?
You can find most of this information at the tax assessors office. Start your bid at $125,000.00 and go from there.
Check to see what type of repairs it needs and how long it has been empty. I was told just the other night by a fellow investor, that she is buying an REO that has been empty 1.5 years and the bank (that owns the property now) is paying to fix everything, paint, pool... Knowing what it needs for make ready will give you some haggling power. However, with my own research, banks don't come down too far from what they are listing it at. It has already foreclosed and that cost that bank a lot of money. I also learned, at least here in TX, that the bank pays all the back taxes on an REO. Just factor in all your costs so you make an informed offer. Also, if you have proof of funds before making your offer, I think this helps.
Good Luck.