Foreclosure in 38104>Question Details

Jjohnson, Home Buyer in 38104

Why would a Seller ask for a listing price and then turn down an offer for the full amount of the listing price? This house is a foreclosure, btw.

Asked by Jjohnson, 38104 Thu Feb 9, 2012

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9
I get this question alot from owner occupants on foreclosed houses. As Rodney said, the bank looks at the net proceeds and in most cases, how you are paying for the property.

The biggest problem with foreclose homes is the type of financing. If you are going FHA or VA, then the asset manager would put you on the bottom of the consideration list. Someone paying cash and not asking for closing cost would move up further on the priority list for consideration.

Most buyers want a deal and that is why they are looking at distressed houses. However, a lot of individuals don't fully understand....YOU ARE BUYING THIS PROPERTY AS IS and the bank isn't going to do any repairs. On most FHA and VA loans if there is repairs required they have to be done prior to closing by somebody and that somebody is YOU. Do you want to do repairs on a house that you don't own...let alone if the REO (bank) department would even let you due to liability issues.

There is another option, a 203K , but the interest rate is higher and the buyer cannot do the repairs himself unless they are licensed in that field. So, the buyer must get contractors from an approved list, have bids in place, yata yata yata.........The bank wants clean, non problematic , cash, no closing cost offers at all turns.
1 vote Thank Flag Link Fri Feb 10, 2012
I specialize in working with banks and HUD homes and right now most homes are being sold for more then the listed price. The most important thing with buying a foreclosure is to work with an experienced foreclosure Real Estate Agent. There are different procedures with each bank. Some banks will negotiate on repairs if they are required lender repairs or HUD for instance does the FHA appraisal in advance so you know what the home will qualify for. There is a FHA 203b with repair escrow that allows you to put money in an escrow account set up by the bank for required repairs HUD is not willing to do but this allows you to close and do the repairs after you own the home and this program is at the same low interest rate as a straight FHA loan. There are different variables in every case. If you have any questions on the foreclosure process please feel free to email me at dustie.zvolanek@gmail.com
0 votes Thank Flag Link Mon May 13, 2013
What type of incentives/concessions did you ask the seller to pay on your behave? Just like Jo Shaner mentioned below - when you start asking a bank to ante up some funds to sell a house you are probably not going to get to purchase that house (especailly with low priced properties). The lender is already losing money and is trying to stop the bleeding.

The lender most definitely does not want the property - remove your concessions and send the offer back to the bank.
0 votes Thank Flag Link Mon Oct 1, 2012
A seller can reject an offer for any reason. It is possible they received an offer higher than yours. Seller looks at the net to them, not just the offer price itself. The financing type of the buyer is also a consideration.
0 votes Thank Flag Link Fri Feb 10, 2012
Email me the address and your contact info.....I will look it up and let you know what is going on.

Email. Stephen@stephen-anderson.net
0 votes Thank Flag Link Thu Feb 9, 2012
I actull offer a couple of hundred dollars more than the list price. We were informed that all offers had been rejected and the house is still on the market. It has been on the market for a couple of months now.
0 votes Thank Flag Link Thu Feb 9, 2012
The house is as is. I asked for a standard closing pretty standard closing agreement and I am pre-approved for the loan.
0 votes Thank Flag Link Thu Feb 9, 2012
Even though it is a FC, the bank still has to consider their NET. If they received two or more offers, all of them full price, and one buyer is requesting 3% CCA, and another buyer requesting less CCA or none, the banks NET is going to be higher with accepting the second offer.
0 votes Thank Flag Link Thu Feb 9, 2012
Are you pre approved for the loan? Is the house in good condition? Did you ask for closing cost? Call me! 338 9043
0 votes Thank Flag Link Thu Feb 9, 2012
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