Hi Markus, Good Question! As an experienced Foreclosure Realtor, I see this all the time! Lately we have been seeing a trend of Bank's listing a property for an unbelievable amount to create tremendous interest in the property. This results in a bidding war between sometimes up to 10 or more buyers. My best advice to you is to contact an agent that is knowledgable in the neighborhood and with Bank Owned properties. You will need an expert to assist you with what the homes true value is so that you can make a fair competing offer. Then, most importantly, you need the guidance of a Buyer's Agent to help you with the Bank Addendums to follow. Buying a bank owned property can be very scary and frustrating but not impossible!

My Best Wishes to you in your home search!! If you need any additional information or assistance, i would love to help you!!

Sincerely,
Lori Lindholm
Re/Max Alliance
Fort Collins, CO

Not clear on if you're talking about a courthouse auction or a post foreclosure property, but the post below should answer most of your questions either way. Good luck.

In my research into the properties currently available, I am not seeing a property in that price range. Therefore, this might be an auction starting price. Often prices like that are advertised to generate a large amount of interest. That price is not typically found on homes in the Fort Collins area. If you wish to forward a copy of the ad, I could check into it more throughly.

The purchase of a bank owned property typically is similar to the purchase of any other resale property. Basically, once you have decided upon a property, an offer is sent to the seller through the agent that has the property listed. The lender / owner usually send back a counter proposal / bank addendum to the contract. The bank will usually require you have a pre-qualification or pre-approval letter from your lender, or other proof of available funds to complete the purchase.

Once under contract, you will complete any inspections you wish. This will often require you pay to have the property de-winterized to check plumbing, and then pay to have re-winterized. You will also have the opportunity to review title work and HOA covenants. Your lender will complete an appraisal.

Once all obligations and contingencies are met, the closing is scheduled and ownership changes upon the funding of the transaction.

This is a simplified version, but a Realtor should be able to walk you through the steps.

Feel free to contact me for additional information.

Mike Weber
Keller Williams Realty
970-310-4289
MikeWeber@kw.com http://www.RedTeamKW.com