Really Distressed
I recently viewed an REO that is beyond repair for a number of reasons. Severe moisture and mold problems for starters. The home and probably the foundation needs to be removed.
As of 1999, the f.m.v. of the land only was at $27,500 according to the tax office.
The bank has owned this property for over a year that i know of so far. They are accepting bids only and not offering a starting point to negotiate with. The loss mit. rep indicated the bank is flexible and i got a hint that they have not recieved many bids thus far.
Based on the fact that the home needs to be removed, liability insurance, taxes and a number of other factors the bank has to deal with, what might be a good starting point for my offer?
I am basically looking for some theory to go along with the numbers that i come up with, from those of you who have been there, done that.
I am open to to all suggetions and points of view.
Thank You.
p.s. i can provide more detaits if needed.
get a bid for demo of the house and offer $25k less the bid; if the land will sell quickly for 25k. if not, lower the price accordingly
get some estimates of what it would cost to tear the place down..tear it down and build a skyscraper
How about $1.00?
Are you going to be submitting some sort of justification along with the bid? If not offer $1.00, who cares what the amount is, when they say no, offer some more if you want. These guys rarely deal with the real world when it comes to REOs you can send them 50 spread sheets and case studies outlining why they should take your offer and they will only look at the last line item which is your offer and if it within the ball park of the magic number they have you get a deal if not, BUZZZZZZZZZZZZZZ! You get nadda, go back to start, do not pass go, do not collect $200. and start again.
I would submit my offer and then re submit it every 3 weeks until they accept or sell the property. Are you sure that the property is not repairable? I have had some doosers bunt never one that was cheaper to tear down than repair.
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this home is only 12 years old.
its a 1500 sq. ft. modular over a crawl space type foundation with a dirt floor.
every square inch of floor is either gone, huge holes, or buckled beyond belief due to moisture from underneath.
the supporting timbers underneath are lying in the dirt. the sheet rock is junk from holes and moisture rot about a foot off the floor. the ceilings are bowed and coming in.
the kitchen is almost non-existant. (due to abuse)
even if someone was to repair this house, the core problem of moisture remains.
any structure that is ever put on the existing foundation will suffer the same fate, time after time.
then their is mold.
even if the house was borderline repairable, the mold problem is so extensive that it puts it over the top.
its really too bad because it sits on a nice piece of land.
fsbo2
thank you mrbigstuff, that was very helpful along with the other replys as well.
i have learned more from these forums than any others out there. thanks
fsbo2
I think this is what your looking for........
Safeguard Properties is the largest property presevation contractor for HUD. There is an enormous amount of information on their website including how to become a contractor, reference manuals, etc. There are rates they pay for clean outs, board ups, lockouts etc.
I got this information from a winterization sticker on a HUD home.
http://www.safeguardproperties.com/content/view/5/25
Thanks so much for the information. I REALLY appreciate it!!
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