Buying a house that is a bank foreclosure????

Question

My husband and I are going to look at a house tonight. It is being sold buy a real estate company, but I just found out that it is a bank foreclosure. I'm not sure what this means for us if we decide we want to make a bid. They are asking $89,000. It has 1.1 acres of land and is 4 bedroom 1 1/2 bath. The realtor I spoke to said it is in a housing complex, but just happens to have a large piece of land. She also said it needs work. The kitchen is old, needs new carpet, and painted. Any thoughts on what price we should have in our heads going into this?
I'd love to know any other thoughts you may have on buying a property like this.

Thanks a lot

Answer 1

Without knowing what comparable houses in that area have sold for in the past 6 months, we really can't answer this one for you.

If totally remodeled homes in the area sell for $90k, they want too much. If they sell for $150k (recently, NOT a year ago) it is a hell of a deal. Call the realtor and ask her to bring RECENT comparables with her. Compare lots, # beds/baths, renovations/age and square footage. That will give you the best idea of a going rate and your offer.

Good luck and happy hunting!

Answer 2

OK, first of all you are not making a bid, that is what you do at auction, you would be making an offer. If a realtor is showing it to you it means it did not sell at foreclosure and the lender owns it. You should have a buyer's agent if you do not have one, insist on one, it will cost you the same or rather the lisiting agent and buyers agent split the commission but if they are same person then the real estate salesperson keeps both, ask if the agent is working for the seller. Ask your real estate agent to do a comp check for you to get an idea of the value. If the real estate agent represents the seller they cannot really be critical of the property. Now you should pay the bucks to have a home inspection if you do put in an offer. See how long property has been on market, the longer the more likely they will take less. Do not be afraid to low ball if the property has been on the market for a while, the lender will counter, and then you can decide. Bank owned props, or REO props, such as this one, the lender will not do cosmetic fixing, they just want to be rid of the thing, so don't ask them to fix or replace things in the offer, it will reflect it in the bairgain price you get.

Good Luck.

Answer 3

The house is mortgaged to the Bank and the borrowers have defaulted on the payments. There will be an auction of the property and $89,000 may just be the opening bid.
Be prepared to pay more if you're really interested in the house.

Answer 4

Honestly i would offer 40k under the current real economic reality and not finance past 15 years! That's right offer less than half and stick to it! no negotiating upward! Homeowner who see's the fraud of the lenders!!! Better yet look at the reality of job/income security in USA "there is none and what the employers are doing to wage earners the forms of immigration in the name of cheap labor etc!" Small business success is NOT so bright either in USA! Also California who has had beyond most people means real estate price-wise since the mid 70s i can assure you that many mortgage consumers wish they had negotiated 50% less purchase price, they and Florida lead the nation in foreclosers currently.

Answer 5

Pay no attention to those who advise offering half or less for this property. The bank won't even respond to your offer. Your guide should be, as others have suggested, comparable and RECENT sales in the same area for similar properties, in good condition. From that point, you can determine your costs to bring the property back to good condition, deducting that from your offer, and then decide upon an offering price.

Contrary to popular belief, banks aren't unloading these properties for half of asking price, assuming that the asking price is where it should be.