Greg Damis, Certified New Home Specialist

Nick,
There could be several reasons the seller would go back to their bank prior to accepting the offer.
The Seller may owe the bank more than they might net from the sale. The Seller may be asking the bank to participate in the loss with them. This situation is more likely to happen if the Seller is already late with their payments, otherwise their is less incentive for the bank to accept such terms.
Recently, a client of mine decided to sell their home after just 3 years of ownership. The house may be worth a little more than they paid for it, however the Loan they secured at purchase includes an early termination fee of 5% (usually a percentage of the loan amount) that would be due to the bank at Settlement. This Seller was advised to open dialogue with the bank immediately. The bank agreed to reduce the fee so the Seller would not have to pay more than what was received. The Seller will have to contact the Bank when an offer comes in.
Sometimes the lender is not a bank or mortgage company but a relative, friend or investor who shares in the profit if any. The Seller would be looking for their blessing.
I hope you get the idea from these examples.
Good luck. - Mon Sep 8 2008, 15:25

Hello Eliza,
I would have to agree that foreclosures are not for everybody , particularly 1st time buyers. The tend to be run down. Many forclosures like FNMA and Hud require the Buyer to pay all transfer tax, take the property as-is and de-winterize prior to inspection, then winterize.
I assisted in the sale of hundreds of forclosures in the 1990's, most were investors.
Look to find a property that meets your needs. If it turns out to be a foorclosure, I would recommend using an agent who has done this before.
Also , stay away from List of forclosures that you have to buy. They are typically outdated when you get them and they are mostly Listed For Sale.
Good Luck
Greg - Mon Mar 10 2008, 12:03