The Bank Wants To Sell On The Fmv
there is a house the bank took it for 125k, no one wanted it in the auction. so now they put it up in the mls w/a broker for 205k. even the broker said the bank always put up high,this time is about 20% higher than his opinion. bank's cost is about 142k at this time. I'm thinking to put in an offer. is there any rule of thumb about how much off would be a buy with cash/mortgage, 20%, 40%...(60c,80c on $1?), any suggestion?
this days seems the banks always put up REO to FMV if not higher than that even there is some work needs to be done. I have seen some house has been in the market for a year but the bank only lower the price a fraction. hmmm. one side i heard the bank don't want any bad loan in their book, they would get rid of it quickly. the other side they so firm on their price. any thought to get through it.
thanks 
As a stockholder of the bank I commend their action. As a buyer of REO's I abhor their methods but alas it is but a game.
Where is the property? What kind of Property? How much work to fix up?
Actual final bid at foreclosure sale.
Actual unpaid bal on mortgage that day.
Any bidders present?
Any idea how qualified and experience were the bidders therein present?
Is this a loan that the bank made themselves? If not was it nonperforming at time of their purchase?
What is the market like? Does that Broker work just for the bank?
Given the above and the condition of the weather you make your bid. the first is not your last and you should pre qualify and your bid should be well dressed, suit, tie, trousers. Which means Cash.
Make the offer yourself to the REO officer of the bank wherever possible. Take his measure. A few questions to see his mine set and how he is instructed. Does he work off the SOP or does he have an area in which to bargain? Etc. then
prepare for the counter, and most of it is based on what happens. Does he pick up the phone and call his boss? does he have his supervisor come over and hold his hand. Is he of such limited observational abilities as to be unable to get past a bust measurement to the true infinitly larger circumference of the female mind? Etc. Etc. Do you see what I mean? Hard to instruct, you are the point man all incoming is directed at you. Take cover but stay in contact.
Do not take him off his task. He has nothing to enrich you with he is to coin a phrase, One of the Banker Persuasion.
Go for it. Aux Armes Per Ardua
Lucius
It's in Michigan, the snowy, cold se MI., It's a single family home w/4bd, 2bath. built in 1950s and made a addition in the 80s. It needs paint and there is a virtical crack on one wall, big one. I hope it's not structure wall. Outside is no landscape, with the snow noone sees anything anyway.
went to auction block at 125K, there were at least 30 bidders there. A few of them are veteran bidders there. They bid up a few at each auction.
The bank has been service the loan since it originated. The owner bought the house many years ago. They refi it last year. But they felt behind soon after.
The market here is slow. The only attraction this house offer is not the house itself but the land it sit on. It's over 600' deep. I am thinking whether it is dividable. But I don't feel it would go quick. Most of the people don't like the street.
The broker works for a few banks. I got to hold a person in the bank REO department before it was listed. She just bounce me over the broker. She said they only deal with brokers.
I understand the offer has to be well dressed. But how to do it. He is in the middle. and he said he can't talk to a live person as well.?
I don't have much experience work with the banks. It is pain to work with such a bureaucracy organization. But I am going to try this one and see what would happen. The only thing is I need to figure out a price for the offer!? any thoughts?
Thanks
Someone just asked a similar question on the rehabbers forum so you might want to read that one. Lenders are all different. You basically have to either keep putting in a bid at the price you want until it sells, or just watch it until it gets within about 30% of your price. Some banks mark down slowly. Some mark down rapidly. Others mark down slow\y for several months or weeks, then they start slashing the price in big chunks.
One word of caution. Many newbies and even some seasoned investors spend an inordinate amount on a prospective property which seems destin for failure almost from the inception. Give it your best shot and then move on. This aint the only property in the world. Learn to let go.