Net Out Info Needed For Bank Owned Property
I recently read a posting (which I now cannot find) about counter offering a Bank owned property with a net out sheet. Does anyone have a generic net out form or can you tell me what info should be included.
The posting I read mentioned items like showing the loss the bank is occuring due their inability to loan out moneys that are tied up in the forclosed property, repair costs, comps, etc.
I am a newbie rehabber (with one home under my belt looking for my 2nd) and I recently made an offer on a bank owned forclosed property which has been on the market for 2 months (this is my first time dealing with a bank owned property). Property listed for 164K (which incedently turns out to be 2x the assessed value and is probably what the house is worth once reconditioned ). 1st & 2nd mortgages total 131K. I estimate 8K in repair costs doing the repairs myself, probably 20K if I get a remodeling company to give me quotes. House needs a new roof, all new windows, half finished ceramic flooring & no fixtures in master bathroom, partially finished basement, new garaaage door, etc.
My first offer was for 127K cash (I'm willing to go to 135K) and figure with a complete remodel I could easily get the 164K asking price. The bank countered back with 149K. At 149K, with real estate commissions, repairs, overhead costs, etc. I would not make a profit.
Can anyone give me some advice on how to counter the banks offer and what and how I should present it them ? I have taken digital photos of all the items that need repair. The property is listed with a relator who feels my offer was not that bad.
Offer 127,100 The realtor has to submit your bid. If you're feeling generous, offer 127,500. Mess with them a bit. Banks are weird. If you keep bidding low, maybe they'll take a closer look at it.
Send them a list of all of the necessary repairs. Let them know that this house has problems.
Or wait 3 or 4 wks and resubmit your bid.
(At least that's what I've read in books.) The REO I bought, they accepted my first offer. (This house has serious plumbing and electrical problems which scare the heck out of them, but won't cost me more than $200. He He He
HERE. I FOUND THIS ABOUT SHORT SELLING.
Quote:
On 2003-05-05 19:17, pbodys wrote:
Hey Gary, I'm your man, tell me when to be there..
Here's the Guru on Short Sales
Dwan Bent-Twyford
Here's one of Dwans articles: kinda long.
Here is how it works: A homeowner calls you and tells you he is in foreclosure; owes $95,000 on his property; it’s worth $100,000 and he is 8 months in arrears. He wants to move on with his life but can’t sell his house because he owes what it is worth. Here is where you come to the rescue. You meet with the homeowner and have him sign an “Authorization to Release” form (this gives the bank permission to speak with you about the account) and a sales contract for the amount you are willing to pay for his property. In this scenario we are going to offer $50,000.
Next, you call the bank and ask for the Loss Mitigation Department. This is the department that handles properties that are in foreclosure. Tell the person handling the account that you are trying to help Mr. Smith with his foreclosure and you are willing to buy the property from him. However, due to it’s poor condition you are only willing to pay $50,000 as payment in full. Fax the sales contract for $50,000; comps in the area; an extensive list of repairs that are needed to bring the property up to marketable condition; a net sheet (a title company will help you with this); and some really bad pictures. The bank will then review the information and make a decision. Let’s say they counter at $65,000; you counter again at $55,000; they accept! It’s that simple! We short sale many, many mortgages every year. Banks are not in the business of owning properties. They would rather short sale a mortgage than go to the courthouse steps.
Dwan's link is at the top of this page boss.
Hope this helps. Clif <IMG SRC="images/forum/smilies/icon_cool.gif">
<font size=-1>[ Edited by pbodys on Date 05/05/2003 ]</font>
I know you're not short selling, but this info should work the same.
Good luck and happy hunting
Ronnie