Foreclose offer after property has been on Auction.com and now back to homepath?

Asked by TravisUlshafer2009, Pompano Beach, FL Sun Sep 30, 2012

This foreclosure property I have been looking at for quite some time now is currently listed at 132,500. It started at 170,000 In march 2012 to 150,000 in May to 140,000 in June and now its been sitting at its current price since July 25th. This property had recently been sent to auction.com for a week from homepath however it is not up for auction no longer and had been re-listed on market through homepath back at 132,500. The surrounding properties with simulair lots have estimated values of 120,00 to 140,000 however they have swimming pools and are in living condition. This property needs minor repair however there is no pool and the a/c compressor had been stolen from outside the house. Does it seem as if Fannie Mae is trying to sell this quick with the whole auction.com deal. and if so now that the property is re-listed with homepath is there a good chance I would get an approval for a low bid. Id be willing to pay 125,000 based on FMV but I would like to offer $107,500

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4
Erin Gargan, Renter, Laguna Beach, CA
Mon Oct 1, 2012
Hi Travis,

My name is Erin, and I work for Auction.com. If you have any questions outside of this conversation that you would like to discuss with us, we are happy to help you with our auction process and make sure that your experience with us is as smooth as possible. Peter Chevalier is our Director of Customer Service and you can email him directly at PeterC@auction.com.

Thanks and good luck!
Erin
1 vote
Annette Law…, Agent, Palm Harbor, FL
Mon Oct 1, 2012
Why do you ask?
It does not cost you anything to submit a $85,000 bid.
Or at $107,000 bid.
Or a $125,000 bid.
The truth can only be known if you stop talking and put in a bid.

Of course it's going to get shot down. That is exactly what you want. Jack up the number and resubmit. Of course if your plan hasn't a snowballs chance, you may find others are busy pursuing real business.

As you may or may not know, Fannie , Freddie, Ellie, and all the banks/investor groups have back door opportunities to unload these properties that do not include you. These back door bulk sales create invisible competition and in many situations eliminate competition. If you don't place a fair bid they DO have other options. It surprising how well fair offers work.

Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group, Palm Harbor, FL
727.420.4041
http://RealEstateMadeEZ.us
0 votes
Millie Lumpk…, Agent, Homewood, IL
Mon Oct 1, 2012
I agree that Fannie Mae is unlikely to take a low bid. You may be able to get approved for $125,000 depending upon the competing offers, the updated bpo and the flexibility of the asset manager. This is not a traditional seller. Don't pay more than FMV but Fannie Mae foreclosures are not generally an opportunity for low bids.
0 votes
Stephen McRo…, Mortgage Broker Or Lender, Tampa, FL
Mon Oct 1, 2012
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The bank or Fannie Mae are not going to play games with buyers making low bids, especially from buyers who have not even taken the bare minimum steps to obtain a pre-approval letter and deposit more than a $1,000 (which is a complete joke of a deposit) in a title company's escrow account to obtain an escrow letter.

I see it every day, buyers stepping into this crazy 2012 market with their so called "experience" and "know it all" attitude, telling you they've purchased homes before as 5 or 6 purchases in their lifetime can somehow compare to a Mortgage Broker or realtor's THOUSANDS of deals we've been involved in and refusing to take good advice on how to how best to make their offer.

It's like Michael Jordan trying to give advice to a High School basketball player with few games under his belt back in Jr. High and that player refusing to listen, saying they've played before and know what they're doing, Then watching them lose game after game, still refusing take professional advice, still claiming how they have played before.

Two items that will greatly improve chances

1. Pre-Approval Letter- for as much OVER the asking price as possible, don’t make it look like you can barely afford the property, rather go in from a position of strength.

2. Escrow Letter- with a substantial amount in it, not some weak $1,000 either, put at least 3% or more to show you are a serious buyer

Steve McRory
Pro Option Mortgage/ Florida
steve@pro-option.com
http://WWW.PRO-OPTION.COM
Ph: 888 662 4404

Prior Service U.S. Marine Corps
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