Home Buying in 90025>Question Details

Joriordan, Home Buyer in West Monroe, LA

If house is in foreclosure process, will owners accept more than what they owe on mortgage but less than value

Asked by Joriordan, West Monroe, LA Wed Aug 27, 2008

house has been on market more than 30 days

Help the community by answering this question:


Foreclosures is a temptation to be bought for less and sold for more.
Is it not just like any seller attempting to get as much as they can?
It does not mean that either the buyer or the seller needs to be reasonable.
Are we seeing examples of greed from all sectors?
In a perfect world where good sense rules the price responds to demand and to the best and highest offer by a qualified buyer who can perform in the shortest period of time a price the seller is happy and willing to accept without undue stress.
Unfortunately today we have stress, greed, stupidity and oh yes regret.
Dear Home buyer is this like any other time when asking and getting are any different?
Yes . There are many great deals if one does not work move on.
Good Luck
0 votes Thank Flag Link Mon Sep 27, 2010
Greetings Joriordan.
In answer to your question. The Seller can definitely accept more than what is owed on the property, but he has to get the Lender to postspone the Trustee sale long enough for you, and your Seller to complete the transaction. It should not be a problem as the Lender do not want the property back, and if you can show them that you are a qualified, and committed Buyer, they will work with you.
0 votes Thank Flag Link Mon Sep 13, 2010
A house that is in forclosure means that the owner's credit is already ruined. Come in lower that the original listing price and figure about 15 to20% less than the listed price when it was listed previously. The bank will decide what the balance of the loan is and if the offer is going to be enough. You should have your realtor do the math and find out what is owed on the premises and go from, there. Also, how many homes are in short sale and forclosure in the neighborhood and if there ar many,you have lots of leverage. a house in forclosure is in the hand of the bank and it is up to them to make the decision.
0 votes Thank Flag Link Fri Sep 10, 2010
The only way to figure this out is to see the whole picture &/or make an offer.

Have they had any offers?
Is their forclosure scheduled for within the next month or are they several months out?
Are there other liens on the property?

Get a good agent and have them feel out the listing agent for answers/clues. Your agent should also be able to get a property profile from the title company (we do in CA). This will show the loans on the property and other pertinent information.
Have your agent submit your offer. They can either accept, decline or counter offer. If they decline or counter, you can make a new offer or negotiate with the counter offer.
Web Reference: http://coronasbesthomes.com
0 votes Thank Flag Link Fri Sep 10, 2010
all depends... they are up against the gun... but they may be doing a stragitic foreclosure... keep in mind that have about 7.1% in closing fees they must pay to get out not just the mortgage... and there could be a silent second you don't see on the title... many reasons why some foreclose... get your agent to speak with their agent or the seller direct if they are not listed...
0 votes Thank Flag Link Tue Sep 7, 2010
If a homeowner is desperate they will accept less than the current market value just to get it sold. Whether in foreclosure or not. There have got to be some hidden liens that this seller must pay for, make sure a title search is done to reveal any and everything. This sounds bizarre, however, if they can sell it for more and are in foreclosure then perhaps the bank is making a deal with them or perhaps the have attorney fees to pay to release them from the current mortgage. Looks like more research on this one is definitely necessary.
0 votes Thank Flag Link Tue Sep 7, 2010
You have some interesting posts so far.
My two cents is that there is a reason that the home is in foreclosure. Financial reasons. So depending upon the details, is there were equity in the home I would think that they would have sold it to pay the mortgage. The fact that they are in foreclosure tells me that there is likely other financial aspects that are unknown to you, but are part of the picture.

If the home is worth $200,000, and they owe $150,000, in most cases the owners would sell and pay off their note. It is likely there are other liens on the property that need to be paid.
You can always write an offer, but very rarely will a property be sold for under market value.
0 votes Thank Flag Link Thu Aug 28, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
If house is in foreclosure , yes they are motivated sellers. The owners would accept nothing less than what they owe on mortgage, if possible. And, accept less than value? Realtors, correct me if I am wrong but value is a function of the market, Correct? So no misunderstadning here, the sellers are going to offset the market with best price motivated by the pending lender seeing to recover it's security in foreclosure pending a trustee sale. Yes to the question. Why not? Use a Realtor or attorney if offer is unsolicited. Theres not much upside to countering however? http://www.borrowerhotline.com admin@borrowerhotline.com for more info.
0 votes Thank Flag Link Wed Aug 27, 2008
Hello Joriordan,

The seller may have other encumbrances on the property. Make sure to check with a title company before writing an offer since there could be other liens in addition to the bank loans.

Yona Bello
Web Reference: http://www.YonaBello.com
0 votes Thank Flag Link Wed Aug 27, 2008
It looks like these answers covered most of the bases, The foreclosure mentality is very hard to deal with most are in denial trying to keep their home. They are very emotionally charged and not rational. The other thing that happens is that some buyer's are trying to steal the property and a new law says that the Seller has to be given fair market value , or they can purhase their home back during a 3 year period and more. It is best to hire a professional in such matters. . Many
0 votes Thank Flag Link Wed Aug 27, 2008
Hi Joriordan,

You'll never know unless you put pen to paper as we say...make an offer and see how motivated they are, and be sure to work with an experienced Realtor. It may be a short sale scenario and it could wind up being a lengthy but worthwhile process. Good luck to you!
0 votes Thank Flag Link Wed Aug 27, 2008
Hello Joriordan,

I don't see why not. Be careful with foreclosures when you aren't sure what is owed on them. The may have other loans. If you have one in mind and you wish to make an offer, let me know (even if it's not listed). It might be worth looking at the comps also.


Monique Carrabba
The Reavis Group
Keller Williams Wilshire
0 votes Thank Flag Link Wed Aug 27, 2008

As with any sale of property, that depends on what the seller believes is in their best interest. If the seller still thinks they can get out of foreclosure, they may not be very motivated to sell. On the other hand, if the Trustee Sale is just around the corner they might be more motivated. Work with a professional who has experience speaking with sellers in foreclosure, and that might increase your chances of getting your offer accepted. Of course, in this situation, you are not dealing directly with the Seller, but with the Listing Agent, when presenting your offer, so your sales pitch will be made agent to agent.

Wishing you success in getting a great deal on this home and saving another homeowner from Trustee Sale. Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty
0 votes Thank Flag Link Wed Aug 27, 2008
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