I am looking at a house that I just found out was foreclosed on in January. I also found out that this house "sold" in early January for $179k but the listing price is for $200k? I thought foreclosed properties usually sold for considerably less than market value. The apparant market value of the house is about $180k. Is the bank trying to make extra money, or ?? I am not sure how long the house has been on the market. It definitely needs some TLC (paint, carpet, etc) in areas but overall is nice. I am trying to get a good value and still have $$ left to make some nice additions (deck, landscaping, etc) without putting more into the house than I could get back out of it. What would be a fair offer that you think would be acceptable to the bank?
2007-04-22 09:27:00 · 3 answers · asked by sleepylilme 2 in Business & Finance ➔ Renting & Real Estate
Most people who are currently in foreclosure maxed the property out when they financed it, and the market has dropped, so it is likely that the house when foreclosed upon owed that much to the bank. The bank will try to recoup as much of the money that they invested as possible. If the bank is aware that the home lost value, then they may entertain a short sale, which means they approve a lower amount of money then they were due. Call the attorney for the bank holding the property, and get specifics before you move ahead. Good Luck!!
2007-04-25 06:25:07 · answer #1 · answered by novastarbanker 3 · 0⤊ 0⤋
It is a fallacy to assume that foreclosed properties sell for less than market value. Generally, there is not a great deal of difference in price purchasing foreclosed over conventional sale. The lender considers several factors, including how much is owed on the property, the condition of the property, and the general real estate market situation in the area in which the property is located.
Generally speaking, properties are not foreclosed upon when the owner has a reasonably positive equity value in the home. When owners cannot make payments, but have positive equity in the property, they sell it themselves prior to foreclosure and try to pocket as much of that equity as they can.
2007-04-23 05:58:07 · answer #2 · answered by acermill 7 · 0⤊ 0⤋
They may have listed it for what's owed against it, just to see what would happen.
On any foreclosed home, it's worth a trip to the county property records to see what is actually owed against the home. It might give you a better idea of what they'd be willing to take.
2007-04-22 09:30:25 · answer #3 · answered by Yanswersmonitorsarenazis 5 · 0⤊ 0⤋