Question Details

Helen, Both Buyer and Seller in Los Angeles relocating...

I want to buy a bank owned property

Asked by Helen, Los Angeles relocating to Memphis Wed Nov 7, 2007

Hello, a bank owned property is listed for 192,000. When our house is sold, we are expecting to clear right at 150,000 after all of the fees. We are retired and do not want a high house note. Here are my questions: Should we offer less for the bank owned property? How much down should we pay if we want our housenote to be around 500.00 including insurance and taxes.

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Hi Helen,

With an average interest rate of 7% for a 30-year conventional loan, WITHOUT taxes and insurance, you would have to keep your loan at about $80,000 to keep your payments at around $500. I don't know which area you are asking about, so don't know the taxes, nor do I know the condition of the home, so I can't say what type of Homeowners insurance policy you would be able to get; therefore, it is difficult to figure the amount you would have to escrow for either.

It is also hard to say how much to offer for the particular bank-owned property of which you speak since you do not provide any other specific details. Banks are not always willing to negotiate, and you are not always guaranteed the best deal, either, just because it is bank-owned.

My advice to you would be to consult the services of an area Realtor who is experienced in working with foreclosures. It is likely the bank would not deal with you individually, anyway.
0 votes Thank Flag Link Wed Nov 7, 2007
For this question, you need to speak with a lender. -To get you a a mortgage including ins and taxes...they would need to know-- your credit score, you debt to income ratio, and some other things depending on what type of loan you go with. You can do a mortgage calculator, but you dont' know what rate you will get until a lender looks at those things. Also, is the REO property in good shape? --Have you looked at the inside of it? Repairs may be needed. can start there--looks like you'll have to put down about $110,000.
0 votes Thank Flag Link Wed Nov 7, 2007
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