Shoo, Home Buyer in Wall, NJ

I see all of these listings in various stages of foreclosure. How low can I bid?

Asked by Shoo, Wall, NJ Sun Jun 29, 2008

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Stephen Chmielowiec’s answer
First of all you may want to check and see how much they may owe on their mortgage. You dont want to make too low of an offer because then they make be better off selling on their own or with a realtor. In other words you need to make an offer that will work for both the home owner and yourself.
1 vote Thank Flag Link Mon Jun 30, 2008

Various stages of foreclosure represent different phases. If a notice of default or notice of lis pendens if filed - the house may not actually be for sale - they are in pre-foreclosure. A lot of different things can happen in pre-foreclosure stage..the owners could have paid the back the entire past due balance and brought their loan current, they could have entered into a forebearance agreement or they may in looking to sell their property as a FSBO (not recommended) or it may actually be listed with a broker either for full market value or as a short sale.

With that being said, the next stage would be sheriff sale (be prepared to have with you 20% of your highest bid price in cash, certified check, cashier's check, treasurer's check due immediately) or REO property which is bank owned. Keep an open mind about foreclosed properties as they are usually not in good condition and sometimes you are unable to view the home before the sheriff's sale so you are not really sure as to what you are really getting and what condition it is actually in. There are some short sales on the market which are good steals too. Don't limit yourself to foreclosures but shop around for the best steals if you are looking for a real deal. Foreclosed properties can cost you a lot in the end to renovate.

Good luck.

Gina Chirico, Sales Associate, Realtor
Prudential New Jersey Properties
973-715-1158 cell
973-239-7700 ext 132
1 vote Thank Flag Link Sun Jun 29, 2008
It very much depends on whether the home is 1) a foreclosure (owned by the bank), aka REO which stands for "Real Estate Owned" or 2) short sale pre-foreclosure (owned by the home-owner where the owner owes more than what the home is selling for). Banks typically try to list their properties at aggressive price points leaving less room for negotiation. If a home is listed for an extensive amt of time, a bank will have flexibility, Remember, the last thing they want is to own the property. Remember that the terms you give a bank can be more important than the price i.e., cash vs. mortgage, early close dates. On average, I would say that banks are getting within 5%-10% of their asking price and oftentimes over list price if it is priced right. Make sure to do your research to determine what the property is worth. The biggest mistake some buyers make is thinking that the best deals are based upon how much of a discount you get off of the asking price. Some of the best deals I ahve seen this year, buyers have paid full price on an underpriced home compared to other buyers who have received a 20% discount off of the price and paid more than it was worth.

Referring to Short sales, it is much more difficult to answer your question. It truly depends on the value on how low you can bid. Some homes are priced below market value, others accurately, others way too high. Best of Luck! There's great opportunity out there.
0 votes Thank Flag Link Thu Nov 19, 2009
Contact your real estate agent!
0 votes Thank Flag Link Wed Sep 23, 2009
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