For example there was a home that was bought for $175k seven years ago. It goes into forclosure. The house is now worth $250k. Does the bank try and sell it for $250k or whatever is left on the mortgage? (sorry for the sentence structure)
2007-05-18 11:37:10 · 4 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
The bank will try to sell it at current market value, or slightly below if they want to dispose of the property quickly. They won't sell it for $175 if they can sell it for $250!
2007-05-18 11:41:44 · answer #1 · answered by operababe_61 3 · 0⤊ 0⤋
Going into the REO business is very lucrative bur you have to educate yourself for months before you even spend one dollar. Every property is different and the banks know that, however they will be glad to do business and cut you a deal on the house if it has not sold within a certain number of days 30 60 90 days depending on the bank. If the property has been on the market for more than 30 days you can make them an offer but they most likely will require for you to get a loan with them.
2007-05-18 18:43:59 · answer #2 · answered by Henry Sosa 3 · 1⤊ 0⤋
Most foreclosure homes also have liens on them, so the bank really needs to sell at market value to cover all of the liens and usually 2 mortgages.
2007-05-18 19:08:13 · answer #3 · answered by Anonymous · 1⤊ 0⤋
The bank tries for market value. Costs to the bank to initiate and complete a foreclosure are not small. They go for what they can get.
2007-05-18 18:43:00 · answer #4 · answered by acermill 7 · 0⤊ 0⤋