Do they just want what is owed on the mortgage? Or are they looking to make a profit?
2007-01-21 09:13:28 · 9 answers · asked by PMD 2 in Business & Finance ➔ Renting & Real Estate
Is it what is owed on the mortgage? Or are the interested in making a profit. I'm just wondering b.c. I'm thinking of buying a foreclosue.
2007-01-21 10:38:58 · update #1
The answer to your question depends on which stage the foreclosure is in.
#1 If the foreclosure is in the first few days, the bank will accept the back payments plus any late fees and re-instate the mortgage loan.
#2 If they are in the later stages of the foreclosure the bank will want you to bring the loan current to include all late fees and any foreclosure cost that will be added.
#3. If the properety goes to the bid or sale the lenders will take the highest bid offerred. The minimum bid is the mortgage, late fees and any foreclosure cost
If the bid exceeds the mortgage, late fees, and any foreclosure fees the excess goes to the person that had the loan or home owner.
#4 If no one is successful at the bid or the lender don't get enough to cover the loan the lender then accepts the property as colleteral for the loan and the property becomes a REO (Real Estate Owned) for the lender.
At this point the bank or lender will turn the property over to a real estate broker to be placed on the, market for FMV (Fair Market Value) or the highest that can be gotten from a normal real estate sale.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-01-21 09:37:47 · answer #1 · answered by Skip 6 · 4⤊ 1⤋
A property that is being foreclosed upon goes to public auction. It is the bidders who determine the price that the property sells at. The lender will submit a minimum bid equal to what they are owed (all costs including the legal fees).
If the property does not sell then the lender becomes the owner. The loan is retired. The lender then tries to sell the property for the best price they can achieve. They will not based the price on prior loan. They will want to get the best price in the shortest amount of time. Some of the time they will take a discounted price compared to the market as they just want to get it moved. Other times they will expect full price. It will vary by the lender, the market condition and the property.
Note that when bidding at auction you need to show up with cash or cash equivalent for your full bid. There is no time to arrange a loan after the auction. You pay cash and then do what you want if you want to apply for a loan after taking title as the owner.
2007-01-21 22:53:21 · answer #2 · answered by Anonymous · 0⤊ 0⤋
When a bank forecloses on a property, they list it with a Realtor at whatever it's worth - so they end up losing money.
So many people envision a house where $30k is owed, it's worth $100k, and the bank makes a killing on it. That NEVER happens. That homeowner will be found by investors before the bank forecloses, and given $60k for it.
The typical scenario is this: Bank lends $100k for a house worth $103k. After 8 months, the buyer is three months behind - the bank lets it slide and places the back payments "in the back". Now they owe $103k + some attorney fees = $104k. In another year it happens again and this time the bank takes the house. At this point, what is owed is about $109k, and the house is worth $104k (needs paint, carpet, and some sheetrock work done). At the courthouse steps, nobody gives the $109k owed, so the bank takes it, spends a little to fix it up and puts it for sale for $106k. They end up netting enough to only lose $10k. The PMI covers this loss.
2007-01-21 13:33:15 · answer #3 · answered by teran_realtor 7 · 2⤊ 0⤋
I list foreclosures. They have a appraisal and a broker price opinion done. They also look at what is owed on the mortgage. They list at fair market value.
2007-01-21 11:44:44 · answer #4 · answered by NH Realtor 2 · 1⤊ 0⤋
We were interior the exact same difficulty, they needed 145k for a house they offered 5 years in the past for 125k. We went ahead and agreed on a cost of 140k, CONTINGENT on appraisal. The economic organization and my realtor didnt imagine it would want to appraise for that a lot and they were top. even as the appraisal got here again at 137k, the seller ageeed to promote it for that, otherwise theyd possibility dropping the sale. it really is had to appreciate that you CANT get a private loan for more effective than the appraisal value. uncomplicated as that. in the adventure that they don't pick to comply with promote on the appraised value, you are able to arise with the version out of your pocket, or walk away. in spite of the undeniable fact that, the subsequent shopper who comes alongside is going to get an identical appraisal, and for the seller, this can keep taking position till they discover someone who has the money mony to pay the version. fat danger of that taking position,
2016-10-17 02:39:59 · answer #5 · answered by ? 4 · 0⤊ 0⤋
The figure is arbitrary, the bank has an expense for lawyers, and specialists. If you paid the accrual cost your bill would be ten times what the average charge is.
PLEASE STAY AWAY FROM foreclosure!
In the event you can not pay a mortgage, move and return the property to the bank, "DEED IN LUE OF FORECLOSURE". If you know that trouble is coming, sell the property. You may walk away with some assets to improve your life.
If facing foreclosure, someone may buy you out. Sell, worrying that you are loosing something will cause you to loose your ability to enjoy your life.
2007-01-21 09:30:51 · answer #6 · answered by whatevit 5 · 1⤊ 3⤋
They base it on the amount including everything that is owed on the house.
2007-01-21 09:17:17 · answer #7 · answered by Sherry 2 · 0⤊ 0⤋
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2016-08-23 15:48:56 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Great question
2016-07-28 07:49:18 · answer #9 · answered by ? 4 · 0⤊ 0⤋