Many of these REO homes are moving quickly in Excelsior. You should be ready to move quickly. We can find out who holds the mortgage, when it may be listed and with whom. You want to be first in line with an offer.
The owner (could be several depending on how the mortgage was pieced out) will do an appraisal and / or a Brokers Professional Opinion (BPO) of the property so they are aware of the condition.
Usually we work these problems backwards starting with market value if the home were in great shape. Subtract the cost of renovation (you need to walk through with a reno contractor). Subtract another 10% (at least) for contingencies. Now you have an idea of what a reasonable offer might be.
If there are mold issues this home may not qualify for financing. Are you paying cash? Some of our lenders may offer a construciton loan to fund you though the reno period then change to traditional financing.... more
Rehab financing also is an option if you find out the home needs work in order to qualify for "normal" financing. Rehab financing requires you to get an estimate for a contractor to do the work that needs to be done and to qualify for rehab (i.e., FHA 203K) financing up-front -- the total cost of the loan (purchase price plus repair costs).
These types of properties are one of the last remaining jewels in the foreclosure market as many people incorrectly shy away from them when they shouldn't. There's very potential equity in many of these homes.