Re: Am I Missing Something Or Could This Be Real?
I'm new to RE investing and am looking to buy my first home. I have been recording NOD's and NTS's and REO's and going around my town checking these properties out. I have found 4 that are in my price range and are of acceptable quality. I'm approved for 200k financing and have about 18K cash to work with.
Here's the deal tho:
--I found a house in a neighborhood that is unbelievable. Comps right next door and with less sq footage and acreage are going for $380,000. The house is huge, 4br 4ba with 3900 sq feet. I went and drove to the house and it was beautiful---in an area right by the mountains here in colorado and with no possibility of obstucted views (i.e. new developments blocking the view). No one currently lives in the house. Basically, it seems perfect! Almost TOO perfect...
--Here's where the uncertainty comes in...I found it on a foreclosure website listed as an REO for $171,500!!! From that same website I ordered a "detailed report" on the property that cost me $2.50. Here is the some of the info I discovered:
-Total Assessed Value: $478,200.00 !!!
-Assessment Year: 2003
-Prior Sale Amount: $210,000.00
-Prior Sale Date: 01/28/2004
-Prior Recording Date: 01/29/2004
-Deed Type: PUBLIC TRUSTEES DEED
-Last Recording Date: 03/18/2004
-Last Sales Date: 03/17/2004
-Last Sales Price: $171,511.00
-Owner Name: First National Bank of Arvada
OK...what am I to make of all this?? If I can get this $480k house for $171k obviously I'm all over it. But it seems to good to be true...what am I missing? Has this property already been rebought by the bank at auction and are they going to contract it out to a RE company and get FMV? There were no for sale signs on the property. That's all I know so far--I really want this place bad but I certainly don't have my hopes up yet because it just seems too good of a deal...
Any advise would be great because if this is a real deal it would be a WINDFALL!
Thank you,
Ben
----this site is great!----
So call up Arvada bank and make an offer at $200,000. Make your offer subject to warranty deed from the bank and just in case put in a mortgage contingency. If there are other problems they will pop up on the title report prior to closing and you can sort them out then.