Well Erin from my experience if you are submitting an offer for a foreclosure "REO" If the bank doesn't have an accepted offer within 30 days they will lower the price 10k same with Fannie Mae the problem is that most of them are already pending by that time. I have experienced that banks will decline the offer if it is more than 10% less of the list price in the 1st 30 days. I would suggest working with an agent that isn't afraid to get on the phone with the listing agent and find out what the asset managers expectations are for the bank. It is easier for me when I call and talk with them so I can make sure my buyer has all the info before writing the offer.
Short Sales remember just because it has a low list price its a deal not always the bank that holds the note will always have a BPO done its kind of a mini appraisal to make sure they are selling the home at market value so always have your agent look at the comps in the area to get a better idea of what the bank would counter back at. I hope this is helpful.... more
Other responses on this topic are good advice, but I'm concerned that the home you are comparing to may simply be a home that someone purchased at a foreclosure auction and those are 100% cash transactions and typically below market value. If you are using the county records to verify a sales price, you may only have half the story. As a Realtor actually in the city that this home is located in, I can tell you that our inventory is low and homes are selling at market value (sold comps from last 6 months). You will have some competition with other buyers for most homes in West Sacramento, so "low-ball" offers don't have much hope of ever being considered, because there are other buyers willing to pay market value.
If you forward property info to me, I'd be happy to do some more specific research for you so you can make a more informed decision on this property.... more
I am one of those guys who knocks on your door after the bank takes possesion of your home, so I may be meeting you soon. Since you are a tenant, new laws now allow you to stay in your home for 90 days, provided you can come up with a valid lease agreement and you are not related to the owner (person who lost the home). If you signed a one-year lease and still have more than 90 days left on that lease, you can stay for the term of your lease, but would still need to pay rent to the bank.
The bank does want to take possession of the property as soon as it can, but they will offer you cash for your keys and for you to leave the home empty and in broom clean condition. Banks are offering several thousand dollars these days, to make it worth your while. Contrary to some postings, we are not here "to do a job on you". Most of us want to help with your negotiation with the bank and work toward a solution that makes your transition not such a bad thing.
If you know that your home is going to auction on a certain date, you may want to contact your property management company to negotiate getting your deposit back NOW, because once it changes hands, your chances of getting your deposit back will vanish. If they won't give your deposit back (full or partial), then why would you pay rent, knowing that your landlord made a decision long ago to stop paying their mortgage payments?... more
My company offers a unique program designed to take your "upside down" loan and turn it "right-side-up" again! You don't have to be behind on your payments so your credit can stay intact. We buy your existing note from your bank and issue you a new loan with an equity position of between 7 and 25%! Your name never comes off title - Ours never goes on title! Your new loan we be equal to somewhere between 75-93% (depending on what we're able to purchase the note from your bank for) of the homes current market value. Best of all - the program is guaranteed 100%!
* Exisiting Loan = $500,000
* Current Value = $300,000
* Your New Loan = $279,000 (Worst Case Scenario @ 93%)
* Your Prin. reduction = $221,000
* Your Equity = $21,000
* Old Payment = $3,333
* New Payment = $1,846 (interest only @ 8% (worst case scenario is 8% cap)
* Monthly savings = $1,487
* Annual savings = $17,844
Call me for more info or to schedule a detailed and short webinar @ 916-473-8587 ask for Kevin Cain, GMPR INVESTMENTS... more