Elmer Fudd, Home Buyer in Cincinnati, OH

The lender purchased a foreclosure house at Sheriff auction for over market value. I am interested in buying it but not paying over market.

Asked by Elmer Fudd, Cincinnati, OH Thu May 3, 2012

I am wondering how to proceed. Will they put it on the market for what they paid for it or will it be priced at market value? The mortgage they held was more than value of house. I have been watching this house for a year.

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Elmer I am an SFR and work in the Northern Cincinnati area. You know what really makes me upset is when I have a property listed and bring an offer that the lender rejects. They forclose which increases their costs and then market the property for 30% less than the offer was for.

Speaking of that I have a preapproved short sale that is on the market. The lender turned down an offer less than 30 days ago and now has dropped the approved price to less than what that offer was for.

I would anticipate that they put the property on the market at or slightly below market value because they do not want to own the property. They will get a BPO or appraisal to establish value and deal with it from there.

With banks you never know what is going to happen so all you can do is hang on and wait.
1 vote Thank Flag Link Fri May 4, 2012
Yes, I also made an offer in August that was rejected.
Flag Fri May 4, 2012
Elmer Fudd (nice),
The bank will list the property based on an agents BPO value and possibley an appraisal. Most often they list them for less than the mortgage payoff. If you think it's too high when listed then wait about 30 days and they may reduce the price if they get no offers.

All the best,
Gary Geer

http://www.ggeer.illinoisproperty.com
1 vote Thank Flag Link Thu May 3, 2012
The bank 'purchased' the property for the value of the underlying note. This does not necessarily reflect the current value of the property. It's just what banks do when they repossess a property. What they will price the home for is a mystery but it probably won't be for what they paid for it - unless they want to own it for years.
1 vote Thank Flag Link Thu May 3, 2012
The other part of the problem with the bank owned properties is when the BPO is done, whom ever does it misses the mark. I have a listing now that the bank listed at 40k over market value because the BPO was incorrect. I sent them another BPO that I did on the area and won't listen to me. Had this home listed for nearly 90 days now, no showing, no calls, notta thing...they have lowered the price but still 20k over market value and the mortgage amount is less than market vaule...so what are they thinking. Life goes on.
0 votes Thank Flag Link Fri May 4, 2012
It's hard to tell what the bank will do with a home. Chances are they will put it on the market for more than they bought it for at the auction or market value for the condition of the home. If there are no buyers for it at that price, in time they will lower the price but how low no body knows.
Good luck,
0 votes Thank Flag Link Thu May 3, 2012
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