Will offering the existing loan amount on a forclosure home be good enough to get the house?

Asked by Ligood, Wilton, CT Wed Jun 10, 2009

Help the community by answering this question:

+ web reference
Web reference:

Answers

7
Richard Bre…, Agent, GREENWICH, CT
Fri Oct 14, 2011
Maybe people are forgetting something? Houses go into foreclosure for lack of payment by the borrower. Not because they are underwater although thats the case in most instances. People can stop making payments for numerous reasons and still have equity in the house. Loss of job, loss of income, insufficient credit score or income to refinance and lower their payment, etc.. I work with bank owned properties and as weird as it might sound sometimes banks get more then what is owed. It depends on the market value of the house more so then what the mortgage owed is? I would have a agent do a BPO and come up with a value range for the property. If it comes in the range and you want the house then offereing full price might make sense. Others will try for a discounted price and will usually be outbid unless the house is undesirable to most other buyers. I call those buyers dreamers. They run around low balling bank owned properties and never get to buy one.
0 votes
James Gordon…, Agent, Hamilton, OH
Wed Feb 17, 2010
Ligood why would you want to offer more than list price. If a lender forclosed on a 300,000.00 loan and the home is on the market at 220,000.00 of course they would be happy to take the 300,000.00 loan amount and we the people of the United States of America would thank you!
However if you are looking at a property that was priced at 220,000.00 in a 250,000.00 neighborhood and the loan amount was 180,000.00 they are going to want to see close to that 220,000.00 price. After all if the 180,000.00 was alright that is where they offer it at!
Web Reference:  http://www.Find1Home.com
0 votes
Ninfa Valella, Agent, Wilton, CT
Wed Feb 17, 2010
I agree with most of the comments here . The bank wants to get the market value on the property and they have had several appraisals done to insure that the $$ of the listing is right on the money. Now if the house sits for a long time there might be more of an incentive for the banks to get rid of the property at a lower price. It never hurts to put an offer out there --the worst they can say is no.
0 votes
Darcy Sledge, , Westport, CT
Wed Dec 9, 2009
My recent experience with short sales (ones in which the bank does not own the house, but still has to approve the sale) is that the banks are resisting selling a house for less than what they feel is "market value" which, in many cases, is full list price. I have seen it recently in Weston on both the buy side and the sell side. The face value of the mortgage is not what they have in the house. You have to factor in other costs, back payments due, maintenance, taxes, commission, closing costs, etc. and you might not know what those costs are. So I doubt you would get the house if you offered $600,000 because that is the amount of the outstanding mortgage, especially if the house is listed for a higher price. But to you, there is no cost of making the offer - try it ,and then you will know. Just be prepared to get a negative answer. You can always come back with a higher offer.
0 votes
Laura Feghali, Agent, Stamford, CT
Fri Jul 24, 2009
Hello Ligood,
Usually the banks will try to get back more than what is currently owed on the mortgage as they still have expenses involved in maintaining the property and paying off any liens or taxes due. The banks have their agents perform a comparative market analyis of similar homes that have sold within the neighborhood to arrive at an offering price that is slightly below the market value to get the property to sell quickly. I hope this is helpful to you.
Laura Feghali
laurafeghali@prudentialct.com
203-536-4802
0 votes
Don Fabrizio…, Agent, Danbury, CT
Wed Jun 10, 2009
Typically, when banks are selling homes they have foreclosed on, they seek to sell for at or just a bit below current market value. The banks, when listing their foreclosed properties for sale, have already received multiple appraisals on the property, so they are aware of the current value.

The existing loan amount is not taken into consideration.
Web Reference:  http://www.FabRealEstate.com
0 votes
Minna Reid, Agent, Woodbridge, CT
Wed Jun 10, 2009
It all depends....Who owns the property and is making the decision? Is it a preforeclosure or a bank owned? Is that all that is owed on the property, or are there other liens, arrearages, back taxes, etc on it? What is the market value of the property?
There is not information here to give you an answer to that question.
Web Reference:  http://www.homesbyminna.com
0 votes
Search Advice
Search
Ask our community a question
Home Buying in Wilton Zip Codes

Email me when…

Learn more