Most often than not, the banks like to play the waiting game and come down about 5-10% at a time. Even then, they like to negotiate to get it there. If they are asking $85000 and you offer $50000, they will reject your offer, if you offer $60000. they will most often counter with a mere $1000 off their end, it is a matter of stair stepping with them. They reduce their price every 30 days and most times, it is a waiting game for the price to get where you need it. Unfortunatly, a lot of the time, it will get snatched up depending on area, demand and need. If I can help by comping a home for you, let me know. I would love to help you know what they are thinking.
Sue Ann Collins

And the answer is: It depends. First off, the people who are handling the sale of the property now that the bank owns it probably (sometimes they do) has no idea what the bank had to bid for it at the court house steps. Actually, the bank didn't really pay anything for it at the court house steps, they were just protecting what they had invested. There was just no one else at the court house steps willing to bid any higher than the banks last bid on a house they could not inspect before bidding. After foreclosure, the asset manager is charged with getting the maximum dollar from the resale. Sometimes the resale is for far more than the amount owed when they foreclosed and many times here recently it's for far less than what was owed. The asset managers will usually get a licensed appraiser, as well as a couple of real estate agents to give them a current value. The asset manager then has to decide what price to offer the property for sale, based on their own "unscientific" plan by considering what is a reasonable amount of time on the market and how badly they need to get rid of it. If the property doesn't sell in the time frame they had established they will reduce the price. I've always considered it, and explained it as, a reverse auction. I've seen offers rejected by the bank this week and then they reduce the asking price next week to a price lower then they just rejected. With some asset management companies / banks the person who reviews the offer id not the same person who manages the marketing efforts. The trick is, knowing when to jump. Here are a few questions I always try to ask or determine of buyers for foreclosed properties (or any property really). Maybe answering some of these questions for yourself will help you make a good decision. How bad do you want it? Is this the "house for you" or are you buying strictly as a business decision, investment? How long have you been looking for a house? If you don't get this one are there half a dozen others for sale that you'd be happy with or is this the only one that fits your buying parameters? What's the property worth to you? If it's $70,000, then offer $70,000 and if you get it GREAT! But if you don't get it be satisfied that you made your best offer. But if it's worth $82,000 to you then offer $82,000. Just be happy with the price you decide to offer. Have your agent do all the home work for comparable sales, etc. They can help you answer the questions you need to know to make an informed decision. Do not underestimate the amount of work that needs to be done on the property. Many (not all) foreclosed homes need lots of work on items that you will only find out about after you've closed on it. The banks are only required to disclose defects that they know about. They have never lived there, they rarely know anything about any defects. Sorry for the lengthy response, I could go on and on but I'll cut it off here. Please let us know your decision and the outcome.

Hopefully, you are working with a Realtor. As a buyer, a Realtor's services cost you nothing. Get your Realtors opinion. No one can predict what a bank will do. With strong representation by a Realtor who knows how to negotiate with a bank, a decent amount of earnest money and a loan approval letter to submit with your offer, you might have a good chance!

Banks are not into loosing money. But they don't like to hold on to them either . You can submit the offer and it will sit on their desk for a while........and if no one else offers you may just get the home for 15k less that what they paid. But don't be in a hurry because the bank will wait for a higher offer.