How negociable are bank owned homes?

Asked by Lori B., New Jersey Wed Apr 17, 2013

How negociable are bank owned homes? I see a lot of houses in foreclosure or bank owned that have been sitting for upwards of six months, maybe a year or more? While I understand banks want to recoup what they have lost, doesn't it make more sense to let a home go at a lower price so the bank is no longer responsible for taxes, upkeep, etc.? I will looking to buy in the Parkesburg area within the next year and I've been in my present home for 20 years. I'm not sure of which direction to go: try for a foreclosed home, short sale, sale from homeowners? Any advice would be appreciated.

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Howard Urbine’s answer
Howard Urbine, Agent, West Grove, PA
Wed Apr 17, 2013
Hello Lori,

Here is how I boil it down for my clients.

With a non distressed sale you will most likely pay closer to market value as seller's emotions and motivations are often involved but things usually move along at a reasonable rate. If things need fixed, there is a good chance the seller can and will fix them. They are usually the easiest all around.

With short sales, you first have the homeowner who may have no to little to normal motivation to move and second a bank with potentially long response times etc. There is no money to fix problems as the seller gets nothing from the sale. Banks sometimes assist in repairs but not often. That can create a problem with FHA or VA loans if the loan is dependent on repairs but short sale homes are usually purchased at a discount from market value. The long wait can play havoc with buyers on a more rigid moving schedule and there is the distinct possibility the home will go into foreclosure while you are trying to buy it. I have had it happen. At that point you may have to start over when it comes back on the market as a foreclosure.

Foreclosures are usually easier. The bank must sell at whatever price they can get. There is no emotion involved and no option to just keep it. Their price may not be very flexible the moment it gets listed but as time goes by the price will go down or become more negotiable until it sells. Response time is usually reasonable. Like short sales, repairs can go either way depending on the bank but most of the time they want to sell as is and if that means taking a lower price so be it. The greatest savings over market value can be had with foreclosures and they tend to be easy and fast provided there are no major repairs for the loan to be approved. You often have to pay both sides of the transfer tax but often the bank will pay for title insurance and that makes it almost a wash. I have personally bought 4 foreclosures and helped clients buy numerous others and was always satisfied with the process, speed and savings.

As for your personal decision of which to buy, you will have to weigh the +'s and -'s. Financing is probably the biggest factor. It is far easier for most people to finance a $200,000 home needing no repairs than to buy a $150,000 home needing $50,000 in repairs as they have no way of getting the extra 50k after the purchase unless they do the 203k loan. That loan in itself is a fair bit of work as you have to have estimates for the repairs from contractors ahead of time. If you have good access to money and a flexible purchase window, a foreclosures and short sales are great options. You may have to be more patient in choosing one that fits what you are capable of where as a non distressed sale homes have more likelihood of being ready to occupy as is.
157 votes
What are the extra risks involved in buying foreclosures?
Flag Fri Feb 16, 2018
Thank you for this response. This put some thoughts in prospective when deciding to purchase. We are searching.
Debbie
Flag Thu Jan 4, 2018
and great question and response by the way..
Flag Thu Jan 4, 2018
what is the best way to receive listings and or leads for shortsales and foreclosures? I'm currently looking in the Raleigh -Durham area of North Carolina.
Flag Thu Jan 4, 2018
Good advice
Flag Thu Oct 12, 2017
Awesome answer! Very informative and helpful.
Flag Thu Sep 7, 2017
O man it took me 18 month on a short sale plus the seller took fans, vanished and damage the home the day of signing the contract. But at that time we sign and got pest out if you know what I mean. We saved a lot of money compare to the damage they cost us. At the end of the day you have to balance the bad with the good and keep moving forward. Home owner, buyer and saler from FL
Flag Tue Aug 1, 2017
Yes today five years later my CMA is almost exactly 300% higher than when I bought the house. I also only have ten years left on my low mortgage of 15% /15 years. The bank was so happy to get the house off its books they paid most of my closing costs. Not this is what happened when you rely only on "professional sales agents". I learned more than i want to know about real estate and can only advise other CAVEAT EMPTOR. let the BUYER beware. In my experience, the only client represented by these licensed agents was themselves. The original bank lost money and so did the seller. I called up the seller at conclusion of the sale. She told me her agent told her to NEVER talk to a buyer even after the house was sold. I told her that I had family members who died fighting for freedom and free speech in wars. She relented and told me EVERYTHING! My buyers agent was also in on the secrets! Who did he represent ME? or himself and the listing agent?
Flag Fri Jun 2, 2017
Last of my comment- I learned that the house had been owned for 33 years with numerous Deeds of Trust and 5 bedrooms each rented to a tenant on a lease. NOT DISCLOSED by agent. I also found that the property was scheduled for auction in two weeks! I was mad so I hired a Real estate attorney to help me write an offer that could NEVER be refused. I placed two offers on the house with the same conditions and a slightly lower price on one. My "high offer was selected at 38% below asking. The house was in move in condition. I placed NO other contingencies for inspections and then I negotiated DIRECTLY with the bank who owned the property. I talked to their underwriter and they agreed on my conditions and price. They wanted the property off their books ASAP. They had already made TONS of money on loans on the house and did not want to worry about lower than lowball prices ( mine) and lawyer and auction fees. Yes, the agents got their money and I got the property.
Flag Fri Jun 2, 2017
Continuing form my reply below. I saw a house that looked a typical "hidden" pocket listing. The local MLS photos were terrible. The listing agent refused to answer her telephone on the FIRST day of listing. I got impatient and called her directly and not including my Buyers agent I I still intended to use him but the Listing agents do not return telephone calls). I got an idea! I called the same Listing broker within 2 minutes and guess what? SHE ANSWERED ! Why? I used an old cell phone that I use when visiting family in Beverly Hills, California. The listing agent was very pleasant and nice but she asked an unusual question: Mt XYZ, Do you have to sell your HOME in Beverly Hills to buy this property? I knew instantly that I never told her my name. Caller ID! She wanted to get both sides of her listing and another listing from me for Beverly Hills house.. Bottom line I was able to negotiate an offer 38% BELOW asking/comps. The house PROBLEMS that were not discslosed.
Flag Fri Jun 2, 2017
I have a much different opinion! I was looking to buy a house and only considered properties that were NOT involved with a short sale or foreclosure. I was looking for only ACTIVE listings. What surprises I found! In my area all the properly priced ie low priced houses were :"pocket listings". This meant that I was competing against all agents not just other buyers. How did I know this? Typically on new active listings: 1) I would notice terrible intentionally out of focus ( most cameras have autofocus) and unflattering photos. 2) When I used a so-called "Buyers agent and told them of my interest, they would try to contact the Listing Broker and they would not respond to telephone calls, emails Fax'es, regular US mail. It got aggravating. I thought the purpose of listing a house was to sell it! Isn't it supposed to be a cooperative selling agreement? At least that's what a listing agreement says. My buyers agent explained that this is very common practice
Flag Fri Jun 2, 2017
Thank you for that very informative response. Trying to understand the mumble jumble of house buying can be so overwhelming!
Flag Fri May 5, 2017
I appreciate your very detailed response. It was very helpful. BTW "If things need fixed" is a common expression in the South and it was kinda cool to see you use it.
Flag Thu Apr 20, 2017
"If things need fixed" If things need to be fixed, you idiot.
Flag Thu Apr 6, 2017
Wow, your response was extremely informative! You explained terms and options in a clear, easy to understand manner. I appreciate you taking the time to educate the average person.
Flag Thu Mar 23, 2017
Great advise. We are travelling to Hudson FL this month from the UK to look for a vacation home. All the info here that you guys have shared is fantastic! Wish us luck!!
Flag Thu Mar 2, 2017
Thank You, a well defined explanation on the subject of buying a home that may-be: 1. Non-distressed sale. 2. Short Sale. 3. Foreclosure and not mention is 4. Auction. Real Estate is a complex process depending on what state you live. If and only if, you live in MN., the foreclosures that have been on the market for a long time; usually end up on the Auction block.
Flag Thu Jan 19, 2017
I appreciate the response. I am looking into buying a short sale. I am concerned because the owners are still in the house.
Flag Wed May 11, 2016
I say heck no.To a short sale. Been down that road. After driving 10 hours. The deal melted away. as we arrived. I blame the realtor for not having her ducks in a row. Too many what ifs for me.
Flag Thu Apr 14, 2016
Thanks Howard for the good easy to understand information!!
Flag Thu Apr 14, 2016
I got a foreclosed home and my broker had me make a low offer AND got the bank to fix the things I needed for my FHA loan approval, even though it said "as is"
Flag Thu Apr 14, 2016
Oh yes, if the house needs renovation - in addition to 203K loans, which can only be used for a primary residence, there are Fannie Mae HomeStyle Renovation Loans, which can be used for investment properties and second/vacation homes.
Flag Thu Apr 14, 2016
Great response. I would add that for a short sale, it is very important to see if there is a second mortgage. Legally the second mortgage holder is supposed to get only a few crumbs from the table (unless the short sale is only very slightly short - unlikely), so it is in their best interest to hold things up until they are offered a bigger slice of the pie. My best investment was a short sale, but it took 11 months to close. Not the sort of thing you can do if you are planning to move into the house.
Flag Thu Apr 14, 2016
Anyone paying $35000 for a septic system is dealing with a shister. You can get a tank,the drainfield and hooked up for $6000 - $9000. Most cases all you need is a new drainfield. Then there are those that are old,terra cotta pile and all you need to do is dig it up,clean it out with a hose and maybe lay a little more gravel,lay the terra cotta pipe back and it's like new. I know we did that at my Pop's house in the early 1970's, and our own house in Florida in the mid~1990's. Never had another problem. I mean unless you have moving ground, how is the tank getting broken underground?
Flag Sat Jul 11, 2015
One complication I found is local infrastructure considerations when buying that apply to urban, and rural. It can cost 35k to have a new sewer line or septic installed which can be tricky in a distressed home. Howard may want to tell what experiences he has found and how buyers navigate this, in their favor. Being from Chester Howard may recall Doyelstown,Pa specifically tried to replace septic with sewer at above cost levels.
Flag Fri Jul 3, 2015
To answer Brent in Battle Ground IN: Zillow has options for home buyers to search pre-foreclosure and foreclosed homes in their website, and at no charge to the viewer. Auctions, or sheriff's sales, usually require earnest money down, and can vary between 5-20%. Zillow lists them as well. There's also hudforeclosure.com, which for a monthly fee, will show all the above as well as ByOwner homes, auctions, distressed homes, and government-owned foreclosures. Many of the foreclosed homes do not have photos, and with pre-foreclosure you have to be careful, as the owners may not be interested in selling yet. Good luck in your search!
Flag Fri Jul 3, 2015
Springwaterbooks-I have 3 properties. 2 in Jacksonville Beach & 1 in Jacksonville. I will try to call you Friday night, July 3, 2015. Thanks.
White Dove (904) 247-9403.
Flag Thu Jul 2, 2015
bravo looking for a home in st. aug, palatka, jacksonville, green cove springs area realtors call at 585229-7449 by 9 am or aft 8:00 till 10 pm est...thanks
Flag Thu Jul 2, 2015
Okay information --- But there are TWO LARGER more important factors to QUALIFIED and interested buyers: 1) WHY is the seller seling? EXTREMELY important to me as a buyer. More important than price or location. 1) WHY SELL? The FIVE D's of real estate are what I look for. The more D's the more pressure on the seller. Sellers and their agents try to hide these---but I DILIGENTLY search for them---nosy neighbors---County Recorder---etc etc.

2) TIME---is it important to sell NOW? if I can speed up the transaction with a clean FAST CASH offer---no contingencies---- I can have my offer accepted NOW. if not---there are plenty more sellers in MISERY---making monthly payments on a house they want to sell--- TODAY.
Flag Thu Jul 2, 2015
Why are foreclosures hard to find or are not listed. Is it like an action that you must attend? and third can you view the home first. TY
Flag Thu Jul 2, 2015
J. H. Smith, Home Buyer, 28763
Thu Apr 14, 2016
In 2010 I purchased a foreclosed $100.000.00 (appraised value) home for $25,000.00. Before moving in I had the roof shingles replaced and the wooden deck repaired. The repairs cost me $10,000.00. I paid cash for the house and the repairs. I feel like I got the deal of a lifetime. I live in this home today and probably will for the rest of my life. The house had been on the market for two years and the bank had turned down a $25000.00 offer a year before I bought the house. The Real Estate Agent did not want to present the offer to the bank saying that the bank had previously turned down a $25,000.00 offer. I insisted that she take the offer to the bank and threatened to contact the North Carolina Real Estate Commission if she did not present the offer to the bank. Since the foreclosed house had been on the market for more than two years, the bank was quick to accept my cash offer. I learned three lessons from this experience. 1) Cash money speaks loudly. 2) The longer a house has been on the market, the more apt the bank is to take an offer. 3) Never accept a Real Estate Agents refusal to present an offer. Find another agent if you have to, but do not accept no for an answer from a Real Estate Agent.
79 votes
Nilescranee, you're the idiot. All you did was throw in a PP, which isn't needed. "If things need fixed" is correct. DA Newyorker!!
Flag Thu Oct 12, 2017
Well
Its a little late in the game for me. But, I have learned a lot . AND this will help me in my next endeavors. also to pass this on to others, THANK YOU VERY MUCH!!!
SANDRA HALFMOON NY
Flag Fri Aug 18, 2017
Thank-You for you're optimistic answer, if more people were not likely to accept a negative position from real estate agents, that are looking for commission for their jobs, not that they don't deserve it, but realistically there are many people out there that would become homeowners, and get the houses, town houses, etc. out of the business of the banks. Banks are not supposed to be real estate agents, plus there are still plenty of gray areas that are out there on this topic.
Flag Thu Aug 10, 2017
it is ILLEGAL for your agent not to present an offer. If it is ridiculously low expect to be rejected. It depends on how desperate the seller is. Ex: As happened with me, the people selling their home had put down $5000 on a space in a retirement home and would lose their money if they didn't pay the rest by a certain date. They took our low offer to keep from losing their $5000. Plus some crooked agents know they'll make higher commission if the house sells for more money so even though the seller may accept the low offer, if your agent dosent present it then he/she just cost you a house or a lot of money! They tell you it was rejected when it was actually never presented. ALWAYS demand to see the signed denied offer in writing. That way you know it was presented.
Flag Thu May 25, 2017
Yes, you confirmed something for me as well. We are trying to buy a foreclosed home that has been on the market for a little over two years. They're asking 139.000.00 but we're gunna offer 100.000.00 but now I'm thinking lower perhaps!? Should we chance it??
Flag Thu May 11, 2017
This is the best advice. Thank you. You confirmed something for me.
Flag Thu Sep 29, 2016
Terri Wilson…, Home Buyer, North Little Rock, AR
Thu Apr 14, 2016
Just make an offer. The worst they can say is no. Check the homes on http://www.hudhomestore.com and watch a few houses. See what they sell for. I have been watching it and have seen some good deals. If you want to buy a HUD home as an investment property, you have to check first to see if you are eligible. New listings aren't open to everyone. If you plan to live in it (owner occupant), then you are free to bid on any. If the listing period is marked "extended" then it's open to all bidders. There are other avenues besides HUD. This is just one example. I like HUD because you can go view the home. Auction.com, for example, often says that people are still living in the homes and that they are not to be disturbed. And if you bid on that property and win, and the people still live there, you have to get them out. No thanks!

We bought a foreclosure last year that was listed with a real estate company. We did negotiate a little, but there was another person also trying to buy the house. The price was already about half of what is normal for that neighborhood, so it was still a good deal. There was a little more red tape than usual, but it wasn't that bad. The realtor said that the bank that owned the home was one of the better ones to work with. It is called V Mortgage REO on the recording at the assessor's office. This is the company that handled it for the bank.

Just one more bit of advice... To be safe, assume that the house will need some work and know that the home inspector cannot see everything. Once you start removing carpet and stuff, you may find some more work that needs to be done. I hope that this was helpful to you.
24 votes
Check into HUD homes regularly...don't fall for the subscription site that charges a fee ...HUD is NO charge to access. Listings are arranged by state and counties. There are special deals for Fire Fighters, EMTs and Teachers of K-12 in a public school ...they're known as Good Neighbor Next Door Programs. The first 10-12 days of a listing is limited to non-profits and owner-occupants and it will indicate if it is a GNND eligible home. Now this is really important: Shop for an experienced agent who knows how to submit bids correctly online. A smart one will go to the site of the listing office and be prepared to jump in with a second bid in case your's comes in low. Also...interview lenders! Each state and specific counties and cities are offering grants (you don't pay back) and mortgage interest credit certificates. It can save you thousands each year at tax time. Do you research and ask to see their qualifications and to speak to a satisfied customer. Try FHA too. Good luck~
Flag Thu Apr 13, 2017
Great advise!
Flag Thu Mar 2, 2017
hi I like to buy invest or foreclosure houses in Houston texas
estela._2000@yahoo.com
Flag Thu Feb 2, 2017
very good information, thanks terry.
Flag Thu Apr 21, 2016
Terry Farnsw…, Agent, Lisle, IL
Sun Jul 14, 2013
The bottom line is - it depends on what comparable properties have sold for, and how long it's been on the market - relative to the asking price. Banks are typically like clockwork when it comes to market time and price reductions. With most properties, they'll gauge the activity, and do strategic price reductions generally at the 30, 60, and 90 day mark until the property sells. Often, the properties are priced well from the start - and depending on the market they typically don't last 30 days. The ones with major condition issues, or an undesirable location - will last until the price is dropped to low enough where it's still a deal for the buyer regardless of the problems.

Banks will negotiate to a point, but if you try to lowball them - you will likely simply get ignored by the asset manager handling the case. While it is true that the bank wants to dispose of these properties on their books, they are not stupid and not typically going to peddle them off for pennies on the dollar - like some people think. Often, the properties are priced low/well enough to attract multiple offers - which in turn often drives the selling price up to over asking. Not that it is "impossible" to "steal" a property at a bargain price.....it's just that for any good property with an attractive initial listing price - you are likely going to have competition for it.

You'll want to enlist the services of an agent who can run the numbers for you and determine whether or not your offer is going to be realistically considered, and a good deal for you, based on the comparables and the condition of the home. You'll need an agent to write an offer anyway, as the asset manager for the bank isn't likely going to answer any of your questions, or deal with you directly without one.

Hope that helps!
15 votes
Be very careful. I looked at an REO with a variety of unpermitted improvements. My buyer's agent said that because the improvements were so well done, the city would likely approve them "as built," and so I should pay the bank's full asking price (which was close to the recently sold, renovated twin house next door). I balked because if the city disallowed the improvements, my contractor's estimate for restoring the house was roughly equal to the bank's asking price.

Another buyer did pay the full asking price, the city disallowed the improvements, and a couple months later the house was down to studs. So that poor buyer was all in for roughly twice the after-repair value of the house. This was all after the bank rejected my so-called "low ball" offer.
Flag Thu Oct 6, 2016
Debra Peters…, Home Buyer, 85616
Thu Apr 14, 2016
BTW - it is spelled "Negotiable..." Sure, you can buy one unless you live in Arizona. Real estate law here must have been written on a bar napkin. Three occasions in the past year I have made offers on foreclosed homes that were sitting for over a year with no action. Never once did I receive any type of correspondence from the lien holder or anyone other than the realtor. The realtor would verbally tell me the bank had "countered," at a ridiculously high price, usually full market estimate, regardless of the fact the heaters were ripped out, walls with holes, etc. Within about a week, the realtor would say the property had sold and was no longer available. What I believe happened is the realtor would contact her buddies or other, she'd present my offer then one from her posse for a few thousand more. I looked up the sales records later to confirm this. Crooked. In Texas, they'd be in jail.
6 votes
Happen two times to me in Morton city la
Flag Fri Jan 12, 2018
Nope. I am in New Boston Texas. Same thing just happened to me. I can't find one honest realtor or one that isn't super lazy. Frustrated and I have all cash.
Flag Thu Jan 11, 2018
Thank you Debra - if I saw an offer with a mis-spelling like that one I'd laugh the illiterate fool off the property
Flag Thu Dec 7, 2017
Texas not too bad with Crookedness either. I worked with an agent there, sent money for Down payment and never heard from her again.
Flag Thu Apr 14, 2016
Debra, I suspected something fishy like this was going on when we were buying a foreclosure last year, and that we only won out due to the fact that ours was a cash offer and the other was not. We got the same story that the house was suddenly off the market. Our realtor presented an offer anyway and we got it through.
Flag Thu Apr 14, 2016
Eat-more-kale, Home Buyer, Merced, CA
Thu Apr 14, 2016
My favorite are the stealth short sales that you may find listed. Most listing services have them but they are hidden. In California, you may look at an Open Active listing and not know secrets about the house that only the listing agent knows and they aren't anxious to tell others unless they have a CLEAN offer with cash and/or well qualified conventional buyer who can close FAST. As a buyer there is no way you can detect these listing just by reading the listing. There are some clues though. The listing agents for stealth listings don't want to advertise or market to other agents so they may list it, but there won't be signs up, no lock box and they will be EXTREMELY reluctant to answer the telephone since they want to pick up both sides by bringing in their own buyers. What is a stealth listing? It is a property, usually a house weeks from auction where the owners just kept procrastinating ( or conspiring) until the very last minute. There is not enough time for a short sale, since by the time there is any interest in the house, it will be too late.
6 votes
Lord, i will continue to dream, and look at lovely houses on site.I'm too old anyway and at poverty level.Haa! Good to tell people that are planning home ownership, about great comments on here. My daughter viewed her dream for me when she gets her Degree...Zillow Realtors has this on the market..1425 Morganton Rd. Fayetteville,NC.28305..Built in 1959..We've been on the grounds.Wow !! Nothing beats this lovely combination. We wonder why this home has been for sale since we saw it 2016. Don't know how long before that.
Flag Fri Dec 15, 2017
teach us MORE, please!
Flag Thu Apr 14, 2016
Bill Eckler, Agent, Venice, FL
Sun Jul 14, 2013
Another way of looking at this is considering how long the property has been on the market and what, if any, have the price decreases been.

Generally, banks are much less receptive of accepting lower offers within the first days a property is listed. They feel they have done their homework and priced the property in step with the current local market.

As time passes, and an absence of good offers, their position often softens. so usually, the longer a bank owned property is on the market the more flexible they can be with pricing.

My advice on the nature of home to consider is to not limit your options by seeking only one of your categories. If you focus only on "foreclosures" you could miss out on even better options within the other groups. The best approach is to determine your own personal search criteria and then focus on the entire market not just one segment of it.

Best wishes,

Bill
6 votes
Everything is worth what the buyer's agent pushes the buyer to pay on a particular day. Buyer's agents become very difficult to work with if you do not want to offer what they suggest, even if they have no rationale for their suggestion beyond, "Trust me."
Flag Thu Oct 6, 2016
The way I see it is everything is only worth what a buyer is willing to pay on any particular day!
Flag Fri Jul 3, 2015
Jim Marron, , 14615
Thu Apr 14, 2016
AN empty house in cold weather (EVEN THOUGH WINTERIZED) for any length of time is in danger of water heater rot, furnace failure, Mold, buckled floors, paint failure, vandalism and a host of other problems.
Bank buricratcity precludes a quick sale, so the property sits, deteriorates and loses value. Everyone looses
5 votes
High humidity and warmth for mold, so mold is not an issue.
Flag Thu Apr 14, 2016
I've been bidding on a Hubzu owned home that's been empty for at least 2 yrs.Water comes in the basement when it rains and the mold reeks through the whole house and paint is peeling off the walls and cielings. They want $55,000 for it and the online bidding starts at 35,000. No one is bidding but me and I've gotten up to 42,000 and they won't accept that and every 6 days restart the bidding clock. I refuse to go any higher because of the serious mold problem and the cost of clean up. I told them of the mold problem and got a call from someone from Altisource who spoke in a broken tongue I could barely comprehend. Someone from EPA informed me of the dangers to my health to buy a house because getting rid of it and the smell is almost impossible. It's the 1st house I've found that suits what we are looking for but should I not risk buying a house. I was told I may have to replace ductwork and exterior walls. the basement had no door nor the 2nd floor had no door allowing the mold spore
Flag Thu Apr 14, 2016
You silly. Had me laughing Hard.
Flag Thu Apr 14, 2016
loses. If everyone looses, then they all need to be tightened up.
Flag Thu Apr 14, 2016
Christine O'…, Home Buyer, Verona, NJ
Thu Apr 14, 2016
Thanks for "lobbing the old and out of date junk" into my email. Really! 3 years ago I was neither a buyer nor a seller. Now I am both and I'm studying all the options as I consider relocating to a much warmer climate in a resort-adjacent community. I am priced out of the neighborhood at the current market prices, but there are some very attractive foreclosures and short sales. The real estate experts who have responded to this question have provided a good deal of valuable insight. Thank you! Much appreciated.
4 votes
Hi Christine, I've been weighing my options as well as to whether to relocate out of state like my parents did (hardly ever see them as a result of their move, mom passed and dad is 87 never flies to NJ anymore). I lived in Verona and moved North into Sussex County. There are some great lake properties (resort properties in Crystal Springs as well) and the taxes are a lot cheaper than Essex County. If you'd like to consider Crystal Springs Resort in Hardyston or lake locations, please feel free to contact me. Crystal Springs is not a 55+, anyone can live there. I have been quite successful selling distressed properties. You do need a lot of patience sometimes but an agent whose goal is service and integrity with tenacity can get you through. Donna Brady - Exit Neighborhood Realty - 973-271-7417
Flag Thu Apr 14, 2016
The Stephen…, Agent, Portland, OR
Mon Feb 2, 2015
Banks are very patient and will always slow play the market. They slowly and steadily decrease the price over time. They will not accept a low ball offer, usually at any point in the process, but often will consider a 1-5% discount.
4 votes
akbes2000, Home Buyer, Bonita Springs, FL
Fri Apr 15, 2016
When buying a foreclosure it usually states "as is" But make no mistake, repairs can always be negotiated in the deal after it is inspected. Oddly enough though most banks I have dealt with don't want to reduce the price but will make concessions on giving money towards closing costs. But there have been a few where they did drop the price. I'm not saying they will all do that but every one I have bought has negotiated later in some fashion. Sometimes it has taken me telling them the deal is done if they don't play ball. Even with foreclosures you can write up in the contract an inspection period where you can walk away. They usually don't want to loose the deal so they go ahead and play ball. Do your diligence and get the inspection period in the contract and use it. I also recommend when you do an inspection first use a certified home inspector. 300 bucks roughly. But at the same time you really need to get craft specific inspections, Have an HVAC pro, a roofing pro a pest pro and a plumbing and electrical pro. Most home inspectors can find deficiencies but will usually say to refer to a professional on some matters. With all those inspections you are up to a grand or so in cost. But what is it needs a new HVAC system or new roof or have termite infestation? That money was well spent. You can use it to negotiate with the bank. If you find repairs can cost up to several thousand you were not prepared for, then id rather lose the grand and walk away.
3 votes
Just bid on and won a property in Little River, SC through Hubzu.com. House was nice. Bidding started at 92K, but went to 105K. My realtor who could submit to Hubzu (most realtors can't or won't) told me the bank's reserve was 120K. I put in 120K and won. The house was sold in "As-Is" condition. After my due diligence I found some offsetting factors I thought I would use to renegotiate down to my 100K "feel good" price. The contract from Hubzu through Altisource said that the house was sold "As-Is", the clause for inspection wa99s disabled, and the clause for financing said the deal would go through even though I could NOT obtain financing for the additional 20% downpayment. It further stated that they would keep the deposit if the deal fell through. Needless to say I declined to sign the contract because of "conditions in the contract that were unacceptable". I see Hubzu relisted the property at a minimum bid of 99K. Good Luck with that.
Flag Thu Mar 16, 2017
The seller pays the fees out of the proceeds. The proceeds come from the buyer. The buyer is the one ultimately paying.
Flag Thu Oct 6, 2016
Just another note- Get an agent to look at foreclosures. they will make sure the contract and offers are correct. Unless you are an agent of course. The seller pays the fees so it does not cost you anything.
Flag Fri Apr 15, 2016
David Parker, Home Buyer, Great Bend, KS
Thu Apr 14, 2016
I've bought bank owned homes before. As long as you don't make a low ball offer - more than 20% below asking price, the chances of getting a bank owned home are pretty good. Expect to pay for remodeling and repairs. Forget about trying to flip a bank owned home. Banks will rarely sell homes at prices you might see on tv shows
3 votes
Dkpatel58, Home Buyer, Jersey City, NJ
Fri Apr 15, 2016
Go for bank owned more than year
2 votes
iamlostru, Home Buyer, Princeton, NJ
Thu Apr 14, 2016
By the time a bank owns it the best deal opportunity is probably gone.

Understand, banks have the financial ability to own it and are prepared to maintain it. In the world of banking, ownership of a property generally just isn't that big amount of$.

Then when you consider that they may own many properties in the same market.....have a substantial interest in market values both now and future (driving down prices by selling low could make all property - that they own now - mortgage now and in the future, etc) worth less. So they have capacity to own it and lose more than most anyone else would be selling low.
2 votes
Eat-more-kale, Home Buyer, Merced, CA
Thu Apr 14, 2016
How does a buyer buy a Stealth listing? There are two methods, both require buyers who are strong with the ability to close FAST before the auction date. A Listing agent ONLY can run this faster than sharing with a buyers agent. TIME is the most important factor for an agent---if they want to get paid. Price is a secondary consideration. 1) The buyer can set up a conference call between seller, buyer and bank mortgage underwriter and explain the situation ( I do not like agents involved here they talk too much and waste time). The objective is to have the seller explain the facts and introduce the buyer and present an offer from the buyer via email or FAX. The next goal is to get acceptance by the loan underwriter on the offer ( high or low offers). 2) A buyer can go through the listing agent directly and make a clean fast offer at the asking price. Contingencies will slow the process down, so it can't be a government backed loan. My last deal as a buyer , got an accepted offer by seller and THEIR BANK at 37% below asking and a loss of over $300,000 to the bank. Why so low? The bank was in an audit and they wanted the property off their books!! NOW! So I helped them and from the date of listing to the date of close was three weeks, No contingencies and no time wasting for a very good buy.
2 votes
Mike Utech, Home Buyer, New York, NY
Thu Apr 14, 2016
this question is over three years old. why is trulia lobbing this old and out of date junk into my email box?
2 votes
Try CANCELLING vs whining
Flag Thu Aug 10, 2017
Maybe because it's still relevant.
Flag Thu Apr 14, 2016
Scott Godzyk, Agent, Manchester, NH
Sun Jul 14, 2013
There is no common sense when figuring what a bank should do. A bank will have the home appraised and then deduct for work needed and how quickly they want to sell it. The amount of foreclosures are declining sharply and the amount of homes on the market is near shortage levels in most areas. banks do not need to give the homes away any more and will wait to sell it near market value if it needs little to no work and the best deals are the homes that need the most work.
2 votes
Bruce Nemec, Home Buyer, Kalispell, MT
Thu Oct 12, 2017
Don;t kid yourself that banks are losing money on foreclosures. Just the opposite as they have made tons. There is a good YouTube video on the topic of banks and what happened after the last downturn. Search it out and I would share the link if I had it handy.
The gist of it is that the person buys a home and pays inflated payments and interest on the loan (loan money by the way is not the banks but yours and mine that are sitting there so banks are loaning our money to other people and paying us next to nothing on the interest but charging the borrower 4-whatever%). So the bank isn;t using their own money in the first place so they lose nothing. they have made tons of money over the years in interest on the property and once the person cannot make payments the bank gets to take it back and then resell it for a massive profit.
Never feel sorry for the bank as they are all predatory, money grubbing, insensitive, morally corrupt institutions. They just make you feel good by offering you a free toaster for opening a new checking account:)
Just my humble opinion based on observations and experience. Your experiences may differ.
1 vote
Brad Whitcomb, Agent, Bend, OR
Thu Jan 19, 2017
Lori B.,
Not sure of your financial situation, but there are several options to consider. Depending on the health of the real estate market in your area, banks will view their holdings differently. For instance, in Bend, Oregon the market tanked in '08 and banks unloaded their inventory while they could. But now the market has fully recovered and prices are well above pre-recession levels. As a result, banks are not willing to give homes away, and are more savvy regarding pricing. Nationwide, banks were allowing some people to stay in their homes for three years, mortgage-free just to ensure the home didn't suffer from deferred maintenance due to vacancy.
So to your question about options. It is in the bank's best interest to take offers. If the home has been on the market for over 70 days you are likely to see the listing agent ask for a price reduction. Ask your real estate agent to check with the listing agent regarding what comparable were used for the bank to set the price they have in place. It is the listing agent responsibility to inform the bank of any changes they believe need to be made to get Buyers to make an offer.
Foreclosure: Bank owns the home, but the original Buyer has a period of time to reclaim the home if all back payments, and fees are paid. Quicker process, Buyer has responsibility to turn on utilities for inspection, then turn them off. Most Banks require a 10 Business Day inspection period.
Short Sale: Long process and paper intensive (Banks often do NOT like short selling their homes unless it is a medical hardship).
Seller Carry Contract: Depends on the willingness of the Seller and Buyer to play well together. There are no shortcuts! Use all of the standard real estate contracts, addendum, and lean heavily on the Title and Escrow companies for critical fund protection, and title insurance...
If it were me, I would likely go the route of Foreclosure. If you have the cash you can also do an Auction purchase, or Sheriff Sale.

Hope this gets you started,
Brad Whitcomb, Broker
John L Scott - Bend
1 vote
Leysa Enz Lo…, Home Buyer, Hot Springs, AR
Thu Sep 15, 2016
We just found out yesterday that our offer on a bank owned home was accepted. We offered less than asking, less than what was owed. It took a while, but we were told the cost of going to auction would end up costing the bank more and so the short sell was a smaller loss for them. I think it depends on what's on the market in your area.
1 vote
Kurt Stiefel, Home Buyer, Flagstaff, AZ
Thu Apr 14, 2016
As someone who has bought two bank owned / foreclosure properties, I totally disagree with most of the responses here. If you're in a strong position, i.e. cash, the bank is more likely to work with you. The first house that we bought the bank lost $150K and we closed in 12 days. The second one we made an offer and the bank turned us down. 6 months later the bank dropped the price to what we offered and we closed in 30 days.

The key is to understand how much the bank has into the property, what work needs to be done, and have enough liquidity to close the deal.

I've heard stories of deals going 18 months - they typically are when a buyer needs a mortgage or they aren't willing to take the house "As - Is"
1 vote
You can find out what the bank has in the property by going to the recorder's office and looking at every filing pertaining to the property.
Flag Thu Oct 6, 2016
how would one find out what "the bank has into the property" and what work needs to be done?
Flag Thu Apr 14, 2016
b.salt.and.l…, Home Buyer, Taunton, MA
Thu Apr 14, 2016
It depends on a variety of factors, but generally banks do not want to be in the business of owning homes. I bought a house where the bank ate $100,000. It had been on the market for one year for the amount of the loan they granted (it was an equity line loan the owner did not pay back). I offered slightly below market value (be sure you have a good real estate agent who knows what market value is for that home in that neighborhood at that time). In response, the bank, 3000 miles away, sent a local appraiser to determine why the house hadn't sold. He said it would not sell for more than $25,000 more than what I was offering. In response, the bank lowered the listing price by $100,000 and I had my agent hand-carry my P&S to the bank. But you have to be pre-qualified or have cash and be willing and able to move fast--because as soon as that new price hit MLS a feeding frenzy broke out. My agent said there were five people behind him trying to buy that house but he got there first.

If you don't ask, the answer will always be no.
1 vote
Lloyd.walker, Home Owner, Little Rock, AR
Thu Apr 14, 2016
When a bank first takes over the property, they are trying to sell for as much as possible to avoid a charge-off. During this period, the property may not be very negotiable as they test the market for buyers. If a house has been sitting for a period of six months or more, chances are the bank will be forced to take a charge-off.

Once the bank has actually taken a charge-off for the loan, they can become very negotiable. At that point, anything collected becomes a recovery on the bank's books.
1 vote
Nick & Trudy…, Agent, Devon, PA
Wed Apr 17, 2013
Banks will accept reasonable offers. But you usually need to pay both sides of transfer tax and u and o permits plus any repairs. Short sales are moving a little quicker. Some of the issues are condition of home.
1 vote
Froyse, Home Buyer, Lakeland, FL
Thu Feb 8, 2018
How to figure a payment for 30 years
0 votes
Thomaskimmi9, Home Buyer, Parkesburg, PA
Thu Jan 18, 2018
I know someone thats losing there home how can I step in if I wanted to take over the home thats about to be foreclosed
0 votes
DB, Home Buyer, Raleigh, NC
Mon Jan 15, 2018
We are putting a bid in on a foreclosed home. Comments here are correct in that agents don't guide you much. The house we want is in an awesome neighborhood, but has been sitting in disrepair for over 3 years now. The bank has done a few cosmetic updates, but nothing major. Yes we know we will have to repair it and most likely gut the kitchen and master bath but are hoping for a good deal. We offered 34% below the list price. The listing price is ridiculous for this property. They haven't changed the listing price in 3 years. Luckily a flipper bought a comparable home in the neighborhood for a considerable discount and in much better condition just a few months prior which helps us regarding comparable sales.
0 votes
The bank will reject your offer because they are losing money on the deal. When a home is foreclosed, it means the owner failed to pay their mortgage or property taxes and the lender is owed money. This means you are reimbursing the lender for the amount that the seller never paid. Don't expect the lender to lower their asking price when they expect you to pay the loan that the owner failed to pay. If the flipper paid a lower amount, it's highly possible that flipper knows the lender and worked with them before, so maybe that lender allowed a lower sales price. In your situation, you don't know the lender and you can't expect the same courtesy.
Flag Mon Jan 15, 2018
Info, Home Buyer, New York, NY
Thu Jan 11, 2018
When you buy a car you get a carfax, get a building violation report on a house you want to buy from BuildingViolation.com

You can use a building violation report to negotiate any sale of any house.
0 votes
Robert H., Home Buyer, Sweet Home, OR
Thu Dec 14, 2017
My admittedly limited experience with this subject tells me the following:

Each property and each bank has unique elements, so the process requires you to contact and present a proposal to each holder. Some banks have kept the property "on the books" so as not to show a large loss on their quarterly or annual P&L statements. Some are eager to recoup some money and avoid the hassle, paperwork and sales commission entails in listing the property. Many will want a cash payoff of what they are owed or what they will accept. Some may consider financing your purchase of an REO (earl estate owned) property.

I find most FSBO properties to be over-priced via a vis the market in their area, and you also have to deal with, in many cases, an unsophisticated seller and missing critical disclosures of unknown-to-you items that you would want mentioned in the deal.

If you go the REO/bank route, as you know or can understand, they have oversight committees, departments, auditors and boards looking at the decisions of the officer who decides your proposal, so you will probably need to come to the table equipped with a BPO - broker's price opinion. Ostensibly, it is done by an independent r.e.broker who can justify the price you are offering. It may not be F.M.V but it should not be too distant from that. Depending on what percentage of the property's F.M.V. is owed to the bank, your price offer may be favorably received or not. One option: Seek out a knowledgeable r.e. broker familiar with the process and ideally who had dealt with the specific bank holding the REO property you are pursuing, and ask what his/her expected compensation might be to assist you. It never hurts to have experience in your corner when dealing with monolithic banks.

Some or a lot of this you may already know, but I thought I'd chime in with what I've learned. Using Google to learn more about the process can help you a lot also.
0 votes
Katsplace501, Home Buyer, San Juan Capistrano, CA
Thu Nov 2, 2017
Are there any types of grants or assistance with closing costs? I have a usda loan and the bank won't do closing costs.
0 votes
If you're asking for assistance with closing costs, then you can't afford to buy a home. Even with 0% USDA loans, the buyer is expected to pay for their own closing costs. In a foreclosure, the banks are not going to help you. They are already losing money on the sale.
Flag Thu Nov 2, 2017
Bondsgirl2018, Home Buyer, Parkesburg, PA
Thu Sep 7, 2017
HI MY. NAME IS SHANNON MY BOYFRIEND IS LOOKING INTO BUYING A HOUSE FROM THE BANK BUT WE NEED MORE INFO BEFORE WE DO CAN YOU HELP US WITH THAT
0 votes
Aamecs, Home Buyer, Greer, SC
Thu Aug 31, 2017
The direction that you go will depend on what type of financing you will be using to purchase your new home. Not all houses will qualify for all types of financing. Typically houses do not sit on the market unless there is something wrong. Most times it is the price is too high for the condition or for the location or both. In the case of foreclosed properties although they are called bank owned actually the bank represents the investors that hold the lien on the property. If the investors believe that the property is worth more or if they are not willing to take it off their books yet, they will sit on the property but that is not the norm. Short sales are not often the best way to go as you are dealing again with a 3rd party that may decide quickly but also may not. There may also be additional liens on the property that you would have to clear. Foreclosure properties typically do not have additional liens but make sure you do your due diligence. Unless you are knowledgeable about real estate and your market, I would highly suggest as a buyer hiring a Realtor to help you navigate the process and to protect your interests as well.
0 votes
Makeitright, Home Buyer, Parkesburg, PA
Fri Aug 25, 2017
The "banks", (most are not banks but collection agents") don't lose any money at all. They don't actually by the debt,(note) but the illusion of buying the debt,(mortgage assignment). They actually make money on a foreclosure and then again when they resell the property. Tax credits, write offs and cash are three ways of many in their ponzi scheme. Of course don't forget the American people gave the banks $750billion because they were to big to fail. Save your money and buy your home without a mortgage.
0 votes
Gloria, Home Buyer, Haverstraw, NY
Thu Aug 10, 2017
Yes, I would agree with you're position, it can be hard at times to sell a home due to extenuating circumstances, not all candidates that come to view a home are able to get a mortgage. When time is of the essence in real estate sales, time is not on you're side. So if taxes and mortgage become due, and three months have run out, the home owner that has the burden to pay, must forgo and give the house to the bank. Sadly, situations that homes fall to short sales, or worse end up being foreclosed on, are then put back on the market, and flipped. Which can mean a contractor or people that have funds saved can make a good investment, and will still have review all costs attached to the title that have not been paid. The perspective home buyer will still have to come up with at least 20%, plus other unseen expenses that may not be clear until foreclosure company identifies a buyer as a good candidate with appropriate credit to move forward. Also a housing inspection should clarify the necessary updates and other problem areas that may need to done before the perspective owner decides the investment is worth the it.
0 votes
Zannymomma, Home Buyer, Saint Ann, MO
Thu Aug 3, 2017
Banks do not negotiate at first. Watch how long it has been on the market. The longer on the market the better for a lower price. You should have a line of credit to show what you will pay. This will make the bank more agreeable to your offer. Barb, real estate broker 25 years.
0 votes
Alinaluthan, Home Buyer, New York, NY
Thu Jul 13, 2017
I wish to pass my first buy property on my self my name is Luis Flores my zip code were i leaving is 90033 im going to ask you if you could cualifide me just with 34,000 /35,000 closed.
0 votes
Reedproperti…, Home Buyer, Bell, CA
Thu Jul 13, 2017
Bankers are stupid... that is why they are bankers and not in a higher paying financial profession.

Now that I got that bias out of my system... It depends.

1) REO - bankers do not always act rationally. When you have an out-of-town bank they are more likely to be more stupid because they don't know the neighborhood. Their general response and wiggle depends on the neighborhood, perceived condition of the home, what their note was when they foreclosed, etc.

As an investor, I don't really care whether a banker is smart or dumb, I just move on when they want an unrealistic price... or I diligently resubmit my offer, DROPPING my offer $1,000 every 30 days.

As an individual, my wife and I have watched a home in our neighborhood for 7 months while 4x other identical models in much better condition have sold for less. This property needs $40,000 worth of work to match these other that are selling for less... but this is an out of town bank that doesn't know any better. Even their Realtor hates them. We're in a position where we can wait, so every 60 days the bank's formula is to drop $5,000 off the list price. By December, they will be at a reasonable level for a 203k buyer - at the price I've been offering them for 7 months now (but they'll still be too high for an investor.)

So, if you have patience, you can find and wait out a good deal this way. DO NOT RUSH. You make all your money in real estate when you buy it - whether for yourself or as an investor.

BTW DO NOT LISTEN TO YOUR REALTOR WHO WANTS YOU TO OFFER $2,000 LESS THAN LIST... DONT HESITATE TO OFFER $10K OR $20K OR $30K LESS THAN LIST!!!!!!!!!

Nothing against Realtors, but their interests are aligned with a quick sale for the higher price.

Short sales suck - these are worse than REO becuase it's very hard to get the bank to agree to take a low-ball offer.

You can also look at buying a foreclosure direct at auction - use Trulia and Zillow or Auction.com to find them. You'll need roughly 5-10% in cash for the deposit and it will take 45 to get to settlement, but you can get a good discount before the bank takes it and relists it as REO or before an investor takes it an rehabs it to relist.

SHORT ANSWER
Anything you can do to buy a house at a discount is an AWESOME idea
Just be prepared for the process to suck and it to take more effort than a normal purchase
0 votes
Jhoan Chacon, Agent, Miami, FL
Thu May 25, 2017
this properties are very desire by investors, it actually comes of where the property is located if a property as been sitting on the market for quiet some time then there is a possibility that the lender will consider a reduce price but remember lenders are not personal attach to this properties they are just looking at numbers.
0 votes
Mkleier2010, Home Buyer, Melbourne, FL
Thu May 4, 2017
The banks don't have to acknowledge the losses until they put it on their books by selling or foreclosing. It's all about their financial appearance. There's a good possibility prices will fall again before long if you can wait for it.
0 votes
Me2uguys, Home Buyer, New York, NY
Thu Mar 23, 2017
I recently made offers on a Short Sale property in GA. Offer was made in Aug 2016, October 2016 & finally in Dec 2016. House was way overpriced at $84,900 at first and had sat on market for a year listed at this price. It did not begin to drop gradually and by December they dropped to $59,900. A $9,000.00 decrease to finally had brought it to my price range. They asked I resubmit the offer I had on the table, which did not change my offer at all, but they finally accepted it the beginning of Jan, 2017!

I thought we were getting somewhere, but unfortunately it was a long road ahead. Back in October I was informed there were tax liens against the property, but supposedly were cleared then per the Broker at Listing Agency, ALTA Realty of Norcross, GA. Then, there were issues with the current plat on file at the county. It appeared the house sat on the neighboring property. An encroachment and there was no updated deed on file from when the current owners had purchased it, nothing had been filed by their Surveyor or Closing Attorney.

When contacting the Listing Agent insisted all this would be taken care of. All the while, my agent and I agreed, the other side should have had all this taken care of months before when we addressed this issues in Aug 2016, months earlier when my first offer was made.

Finally in February, when the fifth Ammendment was done to push the closing date to end of March, my Lender was fed up and sent an email to insist the other side resolve the above issues, as well as having the water source to the house on, so that I may ask my Home Inspector to return to the property to finish the inspection, as he had been out in December to complete it, but discovered there was no water source for the house!!! Here, the neighboring property had diverted the water to their home and cut off the home's water entirely!!

We were waiting to hear if any progress had been made, but were not getting any returned calls, emails, etc. from the Listing Agent. Almost a month had passed and we were nowhere closer to any resolve. Finally, almost a month later we get an email from the Listong Agent that he is no longer willing to work with this Lender and he has pulled his Real Estate License. WHAT!! My Agent writes an email after a week of waiting for a return call from anyone from the ALTA Office, nothing. Finally we get a reaponse from ALTA via phone, telling us they no longer have this file and claiming the Lender has changed and we will have to contact the homeowner who has not lived in this house for over three years or the new Lender. They did give us their infomration, but we had no way of reaching out to the owner.

I finally called the Listing Agent and he was willing to give me the homeowner's number. My Agent gave her a call and was able to get a call returned and many answers from her. She was also in contact the new servicer and we thought we now had reached someone that was actually planning to get this moving and to a closing.

Unfortunately, March 21st came and went and my Lender gave me a courtesy call to let me know I could no longer proceed to buy this home. Just when our hopes are high that we can finally get this done.

Much of the problems I encountered were caused by the lack of work being done by the Listing Agent at ALTA, the mortgage servicer MCM who were all Partners with their Title company Linear Title. One continually passed the buck amongst themselves.

My family and I had our hearts set on this house when it finally dropped down to our price range in December to $59,900, but we never got there, due to ALTA, MCM misleading us throughout this process all those months telling us everytthing was being done. I came to the conclusion that they had no intentions of getting anything resolved to sell this house any longer. They all passed the buck until it was transferred to a new mortgage servicer.

Now, my family and I have to start all over. I spent over $900 on Home Inspections, including this home of $350. The first two bombed their inspections and the first two properties were owned by someone. The homeowners did not want to give to fix anything or at the very least give on their price, so that I may do the reapairs myself in what my loan allowed. The last was the only short sale or bank owned home. We recently found out that this short sale had been sitting vacant for over three years, but now listed for over an additional year. Unsure why they are called "Short Sales", because they are anything, but short!!
0 votes
Michelleb130, Home Buyer, New York, NY
Thu Mar 23, 2017
I just purchased a foreclosure home and the process is waiting on the bank to put the house up for bidding. Your more likely to get the house at a lower price but you need to get your bid in first. I had a realtor do mine and I'm very pleased..
0 votes
Robert Mobley, Agent, New York, NY
Sat Feb 11, 2017
They're not. The price is usually set by the bank before it's listed. Banks generally don't want to be in the business of selling houses which includes negotiating on the price. The usually price it lower than market value to move the property.
0 votes
P.jones321, Home Buyer, Baker City, OR
Thu Jan 19, 2017
I have an interesting scenario. I have a friend, whose sister had a common-law relationship. I do not have the complete details; however, the basic is the home, the sister owned; was used in a mortgage loan without her signature by her 'X' and during this process, it was put into foreclosure. The sister; called 'Y' tried using lawyers to straighten out the mess. 'Y' managed to get the 'title' signed back into her name and her daughters. However, the loan originator, i.e. J.P. Morgan tried and tried to sell it and they could not. Then they sold it to another financial institution. Still in foreclosure status. The way, I see it, the house used as, I assume collateral, by the former 'X' and the loan is in his name. The house in her name and her daughters. I do not see how this is happening as it comes up as fraud in my knowledge of legal area of expertise. First off; this is not legal advice, since I am retired from law. What is odd about this scenario is you have 'X' holding the loan in his name only. The house is held hostage by these above mention financial institutions. They cannot sell the house; as prospective buyers would see this as 'house' with 'no' clear title and 'a loan' that was fraudulently taken out on 'this house.' The financial institutions deliberately; ignoring the facts of the 'house held hostage' because of their 'ignorance.' "Y" according to my friend has been dragging her feet, I am assuming that because of the lawyers she hired provided no results! Next, MN., does not recognize>common-law relationships
0 votes
Laurapjpj, Home Buyer, New York, NY
Thu Jan 12, 2017
The longer a house is for sale the cheaper the bank will go but that means that sometimes you have to wait. But its worth it if you don't have a lot of money . And another tip is banks like cash buyers if y
0 votes
Halhammerjr, Home Buyer, Clearwater, FL
Thu Jan 12, 2017
If you want to negotiate effectively with a Bank on REO properties, it sometimes Helps to do a factual presentation of the homes damage and problems. Good photos are essential to illustrate this point to Bank officers who have probably never seen the property, are relying on comparable sales, and are unaware of serious problems with the Home. Don't assume they know, of that they have done a proper evaluation.
Dr. Hal Hammer, Jr.
Southland Asset Mgt. Co. Inc.
0 votes
Robin Bean, Home Buyer, Naples, FL
Thu Dec 29, 2016
Watch out for The assigned realtor having an interest personally or for a friend,either needing a loan
irend needing a mortgage a friend I missed a sweet deal on a foreclosure thru impatience and advising the realtor I was due back in Europe soon so lets get the water and electrics turned on so my handyman can check the the a/c etc works OK..He was in fact able to check the a/c and appliances as he knew hw to turn the power on ,the realtor did not.The water shut off was sealed by the county supplier.We hassled the realtor for weeks to get the water on whilst our deposit on the bank accepted offer just stayed there until a year later when it was returned
When I came back 9 months later the home was occupied presume sold to a "friend" redecorated. T the pool which had the cage kicked in when we viewed and the water thick with algae encouraged bya clearly visible dirty nappy was now in pristine conditionj
t I realised later we in theory still were the buyer as deposit not returned but was russhed to us as soon as we mentioned "not in our US Bank a/c as promised
So lessons for cash buyers on foreclosures:-
1.Don't let on to anyone your personal timetable or pressures to get the deal completed.
2.Do get your offer accepted by the bank and your deposit subject to a survey registered.
3.Leave a POA (Power of Attorney) to someone you trust to close for you once survey is done.

When a home can be bought for a fraction of its build cost plus market value due condition and locatio, you can bet your bottom dollar the guys getting first pick, the assigned realtors will do enough window dressing to be seen to get the bank its money back and enough to be able to pass of as acting impartially, but making a killing is going to motivate any of us ,so first nose in the trough gets the whole meal in real estate.
0 votes
Mscott007, Home Buyer, Chama, NM
Thu Nov 17, 2016
Banks face their regulators (OCC, FRB, FDIC and State) at least once every 18 months, more often if it is a problem bank. The regulators will always analyze a bank's assets (securities investments and loan files) to ensure the assets are being properly identified as performing or non-performing. Non-performing loans (real estate is referred to as OREO or Other Real Estate Owned) are scrutinized as to their collateral level and the borrower's ability to repay. If the borrower has no repayment capacity typically, the loan is called due and the collateral liquidated. The liquidation process can be a lengthy procedure hence banks can be motivated to shorten the process as much as is legally feasible. Liquidating collateral is expensive (litigation) and Regulators frown on the bank having to put good money into bad to resolve a delinquent borrower's loan. So yes, banks will often consider any offers made to pay off the bad debt! But remember the recent financial collapse wherein some large national banks were sued because they used rorbo-signatures on their foreclosure documents. Litigation hangs like a cloud over the finance industry and the Regulators ensure that banks take all precautions to avoid a repeat of those terrible times. Privacy issues prevent banks from outright advertising they have OREO but it never hurts to call your local lenders once a month.
0 votes
Ctc1158, , Naples, FL
Thu Nov 17, 2016
I almost purchased a bank owned home in 2011 in Naples. It was stripped of all its appliances and there was a big hole in the ceiling through the roof where I could look up and see the sky from the kitchen. If the bank budged at all on the price it was no more than $6000. And this was 2011! Personally, after my experience and seeing how greedy these banks are, they only released homes that were crappy kind of like a junk yard dealer, I wouldn't feel comfortable dealing with them. At that time had I lived in or wanted to purchase a home in other regions like Clearwater, or Cape Coral, I could have gotten a spacious home 3/,2 2 car w/ pool and even on a canal with appliances for less than what the bank was willing to part with this Naples home for. But this is Naples, Florida. They may conduct their business with a little more integrity in other parts of the country.
0 votes
Manny Christ…, Home Buyer, New York, NY
Mon Oct 31, 2016
Banks are not in a hurry to sell REOs. I recently learned that when a bank loans you mortgage money, that the bank actually has only about a tenth of the money loaned to you sitting in their bank coffers. So why the rush to sell? Its all paper money baby. Lol.

Seriously go to your local bank, befriend a loan officer, take him out to lunch after you become well acquainted, and somehow you'll get better access, and deals on the bank's REOs. It's all who you know baby; not fair, but the realities of life.
0 votes
Prosper Real…, Agent, Tucson, AZ
Wed Sep 21, 2016
Google "Home Loans For All". They'll be your best bet by far.
0 votes
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