Foreclosure in Crystal Lake>Question Details

George, Home Buyer in 60014

Offers on Foreclosures

Asked by George, 60014 Mon Jun 2, 2008

When looking at what is left on the mortgage when a house is foreclosed, is that what the bank is usually willing to sell it for or would they still try to make a profit? Also, I have heard banks are much less likely to come down in price, is that true as well?

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George - I agree with Ida. It is best not to make blanket statements concerning foreclosures and/or short sales. Have your agent perform due diligence-research on each property, have a very, very good look at the property you are considering and then attack! Let me know if I can be of service to you, Mark Tracy / Keller Williams Success Realty Direct: 815-715-0535
0 votes Thank Flag Link Sun Aug 18, 2013
Hi George, I just reduced a listing of mine in Lakewood to $250,000 today. It will be a short sale and is currently going through the short sale approval with the primary bank and secondary bank (equity line). Check it out and contact me if you want more info:

http://tours4.vht.com/GMI/T1141617/nobranding

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This is a Short Sale - offer to purchase will require 3rd party approval. Home sold "AS-IS".

Linda Zielinski
847-456-3105 Cell
0 votes Thank Flag Link Sun Jan 4, 2009
George, The banks have a formula, and most of them are looking to accept 16 to 18 % under market value. That number has to incorporate ALL the fees, closing costs, attorneys fees, commissions, etc..so if the house is listed and commissions need to be paid, the left over amount the bank will be looking for would be about 10% under market value. In this market, I highly doubt there are many homes that will bring a profit to the bank and that includes our own McHenry County. Most banks price their inventory close to what is owed. By us I have been seeing on the average of about 2.5% under asking. Hope this helps!
0 votes Thank Flag Link Sat Jan 3, 2009
This is a good question because many home buyers think they can get a special deal on a foreclosed houses today, under the market value. Years ago a bank would foreclose on a home and attempt to collect what was owed. That could be a good deal for a buyer. Today the banks will hire an appraiser and a Realtor to do a complete analysis on the property to see what the market value is. If the market value is higher then what is owed, then the bank will ask for more. Here's my suggestion to you. "EVEN" if the value is for more, it's probably based on the current value. Values are down anyways. Buy Low, Sell High, remember. If you're a buyer, this is a good time to buy!
0 votes Thank Flag Link Mon Jun 2, 2008
Every foreclosure is different, depending on the amount owed, (don't forget there are usually attorney fees, second mortgages, etc that you don't know about) . It depends on the bank and their guidelines. Sorry to be so vague, but you have to deal with them on a one to one basis.
Some banks are very easy to deal with, some banks take weeks to answer one phone call.
Web Reference: http://www.idamccarthy.com
0 votes Thank Flag Link Mon Jun 2, 2008
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