Jerry - Sorry to burst your bubble but it appears this home is already under agreement according to MLS - the last sale price was 515K but the mortgaged amount was was 435K - so once again, we see the list price at 72% , not of the last sale price, but of the amount origianlly borrowed from the bank in 03.
I can contact a good agent for you to work with in the Chelmsford area, if you want to explore other options. Just let me know , send me a note or text message with your contact information.
Donnabruno@erakey.com or 5082590712@vtext.com

Thank you all for the information. John the property is bank owned, no occupants. Additionally, the real estate agent is located in R.I. The for sale sign is virtually on the ground. The property is in Chelmsford, Ma.

Jerry, all of the answers you see here from the other realty pros share one truth; that the REO properties are a crap shoot - there are so many factors to consider - the asking price of the house, how many days its been bank-owned prior to the receipt of the offer, what condition the property is in, and the strength of your offer when it comes to closing dates and financing. Our office has witnessed a wide range of responses to offers on these proerties but we surely see the banks going for the cash offers or the ones where the buyers have considerable downpayments, especially when there are multiple offers. Banks like minimal risk :) A dozen bank-owned properties that sold recently in our Metrowest /Framingham market , sold at an average of 95% of the last list price. These list prices however averaged 25-32% lower than the last sale price of that same home.
As John says in his post below, it makes a difference whether you are dealing with a loss mitigation department in a short-sale situation (simply put, a pre-foreclosure still in the name of the seller who owes the bank more than the home is worth) or dealing directly with a bank-owned property. One of the biggest differences lies in the amount of time it takes to get a response from the bank, and the time-line from offer to close - but each one of these properties is different and there are not hard fast rules to the game. If you choose to go this route and take a gamble on one of these "sold as is " properties, be cautious, be well-informed and remain open-minded and flexible. I would recommend having a good Realtor, a contractor, a great lender and a good financial advisor on your team of consultants if buying REO property is truly what you have in mind.

Hi Jerry. When you talk about 50 cents on the dollar, I am not sure which $ you are using as the basis. The way I see it, the current list price is probably already no more than 75 cents on the dollar (i.e., the $ that the bank has into this property i.e., loan plus foreclosure cost). Thus, your 50% on the $ would really be less than 40% on the $ and then you also have to consider the cost of commissions to be paid, which will leave the bank with about 32.5% on the $. Since this listing has been on the market for more than a year, it does not seem like the bank is particularly motivated. Maybe this lender does not have a large REO inventory and can afford to hang in there. What does your agent have to say about this? Has your agent prepared a CMA for this property to let you know what similar homes have sold for in the recent past? While nobody can be certain what the bank may be willing to accept, my guess is that they'd just reject your 50 cents on the $ offer. If you go ahead and try, make sure you'll come back here to let us know what bank's response was.

the answer to your question is "yes" it is realistic ... and very possible, the thing is jerry if there are other offers on the property obviously this won't work, because the bank will only take the highest and best offer. however, if it has been sitting there for awhile you and your real estate agent might just be surprised what a bank will take!! Nobody alive has been through a real estate market like this.... never have banks owned so much real estate.... trust me they are willing to deal!!
good luck
agent - Leanne Smith

there is no simple answer. The first question I have is- is it actually bank owned or is it a short sale, meaning the owners are still there and trying to work with the bank on a "short payoff'.
Most REO bank owned properties are very aggressively priced and do not sit on the market for very long, unless its a very very depressed area. What market area are you in?
John

Hi Jerry - I have been dealing with a lot of short sales and REO's and there just doesn't seem to be much rhyme or reason...each lender is different... Part of what might also come into play is how much is the lender owed versus what the property is listed for....most likely two very different figures.

If you are not already being represented by a Realtor, I'd be happy to help you through this crazy process. Feel free to email or call....aimee.siers@commonmoves.com.....508-981-7790