Is there a way to find out how much a bank needs to break even(foreclosed property)?

Asked by Sarah, Wichita, KS Thu Jan 13, 2011

Looking at foreclosed properties and wondering where to start offering a price. I've been given advice to find out just how much the bank would need to break-even and that this is public record. I check, however the house isn't on that site. Is there a way to find out? Or would it be to call the lender?

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A Keyson, , Nevada
Tue Jun 26, 2012
Good answers, yes I agree that the bank will base their price off their BPO and will do a small price drop accordingly as time goes on if it doesnt sell.
1 vote
Robyn Funk,…, Agent, Wichita, KS
Mon Jun 25, 2012
Sarah, I am a local agent who specializes in selling and buying foreclosures. My husband is at the sale every Wednesday at 10 am. I help Buyer's buy foreclosures and I help seller's as soon as they go into default and as late as when their redemption period ends. Realty One has established relationships with local attorneys who represent the foreclosing banks.We also have a full time researcher at the court house who can get all the research on the home prior to your making an offer. This can save you time & headache if there are unforseen title problems or just give you peace of mind & knowledge to make the best $ offer. Realty One Corp. takes the stress away so that there are no surprises.
If you are not working with a realtor, feel free to call me anytime 316-644-9101 and we will discuss all the possibilities and explain all your options, regardless of whether that involves us and our company at all!
0 votes
Bill Eckler, Agent, Venice, FL
Thu Jan 13, 2011
The bank will likely base their "asking price" on a recent appraisal or BPO(broker price opinion), not the amount the previous owner owed on the property. We just had a dealing on a foreclosed home in which the bank took the home back because of a $90,000 debt. Based on an appraisal, the bank put the home on the market and priced it at $175,000 before selling it for $168,000.

0 votes
James Gordon…, Agent, Hamilton, OH
Thu Jan 13, 2011
Sorry my point was most lenders anticipate losing thousands of dollars getting rid of these REO liabilities.
0 votes
James Gordon…, Agent, Hamilton, OH
Thu Jan 13, 2011
Sarah I am glad you asked. Many people feel that the amount that the property went for at the trustee or sherriff sale is what thelender paid for the property. These people are way off the mark! You need to look up the court case and see what the judgement amount in the forclosure is. That is the true price that the lender paid. No one out bid the judgement amount at the sale so now the lender ends up with the property. I just looked up one where the lender was awarded 151k plus court cost,plus advances for taxes and insurance. The lender was the high bidder at 143,200. The property is on the market at 129k!
So for the lender to break even you would need to bid 151k plus 1k for court cost, plus 2 years of property tax, plus any maintance they paid to take care of the property or be happy and offer full list knowing that we the tax payers are taking it in the sh--ts for every one sold.
0 votes
Mitch Larriv…, , Orlando, FL
Thu Jan 13, 2011
Check the property appraiser's website for your county. All you need to do is google "XXXXX county property appraiser" and it should come right up. Every website is different, so just click around and you should find all you need there.

If you need any further help with this, just contact your local real estate agent.
0 votes
Rachel LaMar,…, Agent, Carlsbad, CA
Thu Jan 13, 2011

It is public record, but if you are having trouble finding information I suggest you contact a Realtor in your area. He or she can pull the public tax records and see how much is owed on the home, and can also contact a title representative and mortgage brokers for you so they can dig further. If you like you can contact a title company yourself and probably get them to help you. Best of luck!

Rachel LaMar, J.D.
LaMar Real Estate
0 votes
Good answer Rachel. I miss Carlsbad. I used to wok for JetSource at the airport. Are the flowers blooming...oh forget what that was called. Beautiful there
Flag Mon Jun 25, 2012
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