Foreclosure in 75080>Question Details

Jennyb, Home Buyer in Dallas, TX

What offer would a bank likely take on a foreclosed home?

Asked by Jennyb, Dallas, TX Thu May 12, 2011

We are looking to make an offer on a HUD home listed for $44,000. What amount would a bank likely accept for a HUD property? We have $30,000 cash, but are willing to take out a loan to bridge the gap.

Help the community by answering this question:

Answers

14
Hi Jenny, If you only have $30,000 cash have your agent submitt your bid. THere is really no way to know what will get accepted because the HUD bids are submitted electronically through a blind bidding process. If all you have is $30,000 it doesn't sound like you have a much of a choice. You do not risk anything by submitting the bid! Good Luck!
0 votes Thank Flag Link Sat Jul 2, 2011
Hi Jenny, If you only have $30,000 cash have your agent submitt your bid. THere is really no way to know what will get accepted because the HUD bids are submitted electronically through a blind bidding process. If all you have is $30,000 it doesn't sound like you have a much of a choice. You do not risk anything by submitting the bid! Good Luck!
0 votes Thank Flag Link Sat Jul 2, 2011
Hello Jenny,

The answer likely is not so simple as $xx,xxxx.00
Depending on if the property has been listed for a while and the current price is $44,000, that is one thing, but if it is a new listing then how long the property has been listed, as it may be slated for owner-occupant bidders first since HUD is a federal department whose goal is to promote homeownership.

Of course, if the price of $44,000 is a good price, then it may be in your best interest to act quickly by working with a Realtor familiar with foreclosed properties and get a contract written up while getting your mortgage approval taken care of. Of course, if the property needs work, then you may be dealing with a FHA 203b type loan. Depending on how familiar you are with the area, you may already have a CMA from a Realtor

Additionally, if you have the opportunity to work with any HUD or Fannie Mae / Freddie Mac listing agents who are directly representing these entities, they will let you know that there are some specific formulas that the agencies like to follow. Namely, they are looking for offers that are close to the list price (definitely within 10%), if the property has been listed for a while, then the band (or discount to list price) can open up to 20%.
If you have the opportunity, you may choose to reach out to the listing agent directly, but will likely be met with the request of who is representing you in the transactions....so it then comes back to a Realtor.

Federal agencies which are selling off their foreclosed inventory don't tend to firesale properties like individual banks sometimes do.

Hope this helps.
Web Reference: http://www.pahroo.com
0 votes Thank Flag Link Fri Jun 24, 2011
No one can answer that except the bank. I would offer what you are willing to pay, and don't worry about anything else. If you stall out trying to figure out the perfect price, someone else might beat you to it.
0 votes Thank Flag Link Fri May 20, 2011
Sometimes people offer too much but that's something you don't know since it depends on your competition but that is something you don't know. I would come as close as possible to the listing price if you really like and want that property.
0 votes Thank Flag Link Sun May 15, 2011
They will take what they decide to sell for. No magic formula nor way to establish this in advance. Just write the offer with the number you wish to make and let them either respond or not. If you get no response after a week you can be sure they did not like nor are they willing to accept the offer you wrote. If they respond within 72 hours you may be in the ball park.
0 votes Thank Flag Link Sat May 14, 2011
Depends on what other buyers will offer. I've bought several foreclosures and repped buyers of foreclosures. Novice foreclosure buyers routinely get caught up in what will the bank take, instead of considering the other bidders on the home. Also, cash is king today, and a lower cash offer can sometimes win the bid.
0 votes Thank Flag Link Fri May 13, 2011
As a Registered HUD Agent/Realtor, my experience with individual home buyers and investors tells me you'll need to likely offer $42,000. That's just a bit more than 5% off the list price. Ask a family member for a gift for the difference. Happy HUD House Hunting!
0 votes Thank Flag Link Fri May 13, 2011
Hi Jenny,

Nobody can really answer that question. Another buyer may swoop in and pay full price while you are trying to find out how low you can go. Unfortunately that happens all the time. If you $30,000 is your maximum price without taking out a loan submit an offer. If the property has been on the market for a while they will most likely at least consider the offer or counter at the very least.

Have your Agent pull the comps so you know what the home is actually worth... then you need to make a judgement call. Would you be upset if you lost the property if somebody came in and offered more before you got the chance? Nobody can say for certain what a bank will take... not even your Agent. Every foreclosures or short sale stands on its own and there are no hard and fast rules. In the end the only rule that can be applied is the bank wants to get as close to market value as it can in the shortest period of time. Do your homework to ensure you get the best deal you possibly can without losing it to a more savvy investor.

Best of luck to you.

Don Groff
REALTOR | Mortgage Broker | Consultant
Keller Williams Realty | 360 Lending Group
o.512.669.5599 m.512.633.4157
listings@dongroff.com
0 votes Thank Flag Link Fri May 13, 2011
Your buyers agent should be assisting you address all your questions. Each home stands alone how to determine to place a sales offer

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Fri May 13, 2011
Hi Jenny, I am a HUD registered Broker so if you need help please contact me directly. As far as making an offer if it were me personally considering you are making a cash offer I would go low. Its just a numbers game.

Good luck my friend, let me know if I can help you!

JP Piccinini
EXIT Advantage REALTY
Dallas - Texas
972-836-9295
http://www.dfwtxrealestate.com
dfwtxrealestae@gmail.com
0 votes Thank Flag Link Fri May 13, 2011
In my experience with hud. They will rough take around a certain % of the net price. Call me tomorrow and I would be happy to discuss.

RJ
214-682-0598
Web Reference: http://www.findapadfast.com
0 votes Thank Flag Link Fri May 13, 2011
HUD is tricky because they have a open BID process. Also be sure your agent has HUD experience as HUD has many pitfalls in their escrow process. Have your agent run the comparables and take your best shot at it. If you need a loan to bridge the gap it might be worth it if it's the perfect property.

Good Luck!
Web Reference: http://www.ajsocal.com
0 votes Thank Flag Link Thu May 12, 2011
The banks always have a bottom line for properties that they need to meet. Everything depends on that. HUD homes are a sealed bid situation, so one never knows who bids what until they are opened. If you REALLY want the home, and it looks like a great deal for the area (have a Realtor run Comparables for you) then you should probably get close to the asking price. Otherwise, if you are a gambler and know that "if you don't get this one, there will be others" then talk to your Realtor and place and aggressive bid that may get accepted. GOOD LUCK!
0 votes Thank Flag Link Thu May 12, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer