Foreclosure in Bridgeport>Question Details

Tom, Both Buyer and Seller in Bridgeport, CT

Is it possible to trade your home to a bank for one of their REO properties?

Asked by Tom, Bridgeport, CT Sun Aug 10, 2008

I received this advice from a financial adviser who says he built his real estate empire that way. Is this possible? Anyone have any experience with this type of transaction?

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Answers

4
Hello Tom. Well, I ahve to admit that I have never heard of banks being interested in trades. I know that banks are not in the business of owning real estate and in the current climate, I think the last thing banks want is take on more real estate. Unless there's some financial benefit (you have substantial equity in your house and are willing to part with it), what would be the bank's motivation for taking your house in exchange for getting rid of one of their REOs? I would go back to the financial adviser and ask for more details. On the face of it, it does not look like this would work.
1 vote Thank Flag Link Sun Aug 10, 2008
Ute Ferdig -…, Real Estate Pro in Newcastle, CA
MVP'08
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Banks are not into owning real estate. The properties they own they try to get rid of as quickly as possible even if it means taking a huge loss. There is no trade-your-property department ..
0 votes Thank Flag Link Thu Apr 11, 2013
Tom,

I'll make it 3 that have never heard of this type of transaction. I would have to agree with Ute "the last thing banks want is take on more real estate" and Christopher "the bank will only consider such a trade if it is highly advantageous for them."

I would also second Ute's advise to go back to the financial adviser and ask for more details. It wouldn't hurt to contact a few banks and lenders to ask them a few questions as well.

Richard
0 votes Thank Flag Link Thu Aug 14, 2008
Hi Tom,

I, too, have never encountered this scenario. I suppose that anything is possible, but I imagine the bank will only consider such a trade if it is highly advantageous for them. Value, condition, desirability, mortgage amount, etc would all have to be evaluated by the bank.

In this scenario, I can only think that you would end up with the short end of the deal.

Best wishes,
Christopher Rich
Your Fairfield County Real Estate Agent
William Raveis Real Estate
http://www.fairfieldcountyrealestate.com
0 votes Thank Flag Link Mon Aug 11, 2008
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