5 Comments to “What are foreclosure prices based when a house is for sale?”
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Everyone else is crazy...but me! said:
On July 2nd, 2008 at 8:30 am
money left on mortgage + expenses incurred in the foreclosure process (legal) + expenses of repairs, lawn care, insurance, etc.
Blu said:
On July 2nd, 2008 at 11:40 pm
It depends. If they really want it to sell, they’ll ask for what the borrower owes. However, most of the time they are asking for the value of the home. It is best to contact the original homeowner and negotiate with them, before the lender becomes involves. Alot of times, the homeowner just want the property and the headache off their hands.
Five Stars Mortgage said:
On July 3rd, 2008 at 9:36 am
I buy foreclosed homes from banks all the time. They ASK for the default loan amount and any fee’s they have incurred.
Since it wasn’t sold at the auction they are now forced with the fact they will have to sit on it for an undertimed amount of time. This is not attractive to them at all.
You should go in with an offer substantially below what they are adverising as a sales price. It is their policy to counteroffer all offers. Expect to get a final price about halfway between your offer and their asking price.
John said:
On July 6th, 2008 at 10:20 am
Three anwsers. One to answer your question and the other two to put it in perspective.
1. Before the auction. The owner is the person on title and the one who owes the bank the money (in most cases). Hence they can sell it for what ever they like. To get the lien released means that they need to pay off the loan and any fees, back interest, etc. In some cases the lender will accept less than they are owed. This is called a short sale.
2. At auction. This is really your question. The lender can only ask for what they are owed (principal, interest, fees, etc). If the bidding goes over what this amount is then the surplus goes to the next lien in line or to the owner who is losing the property. The lender is not going to make a profit from a sale at an auction.
3. After the auction and when there were no bidders higher than the opening bid submitted by the lender the property title transfers to the lender. They won the auction. They are the owner now. The loan is retired. The prior owner might have some rights of redemption based on the process and the state. That means that they can redeem the house if they pay everything that is owed. Even if someone else won the auction the old owner who lost the house could have the same rights of redemption.
In the case where the lender is the new owner they might choose to fix up the place prior to sale or they might sell as is. In just about all cases they will list it with an agent. They might accept less than the opening bid at the auction. Situations vary based on the property, how long the lender is the actual owner and other factors related to the local market.
Paul V said:
On July 8th, 2008 at 8:05 am
Contrary to what the gentlemen said above, the bank does not counteroffer every offer!! You will be lucky to even hear back from the agent representing the bank if your offer is not accepted!! Many times the banks will sit on offers until they get several in and then take the best one and not call any of the others back!! I don’t recommend coming in at half the value of what they are asking either. You are wasting ink, paper and your time!!!
On July 2nd, 2008 at 8:30 am
money left on mortgage + expenses incurred in the foreclosure process (legal) + expenses of repairs, lawn care, insurance, etc.
On July 2nd, 2008 at 11:40 pm
It depends. If they really want it to sell, they’ll ask for what the borrower owes. However, most of the time they are asking for the value of the home. It is best to contact the original homeowner and negotiate with them, before the lender becomes involves. Alot of times, the homeowner just want the property and the headache off their hands.
On July 3rd, 2008 at 9:36 am
I buy foreclosed homes from banks all the time. They ASK for the default loan amount and any fee’s they have incurred.
Since it wasn’t sold at the auction they are now forced with the fact they will have to sit on it for an undertimed amount of time. This is not attractive to them at all.
You should go in with an offer substantially below what they are adverising as a sales price. It is their policy to counteroffer all offers. Expect to get a final price about halfway between your offer and their asking price.
On July 6th, 2008 at 10:20 am
Three anwsers. One to answer your question and the other two to put it in perspective.
1. Before the auction. The owner is the person on title and the one who owes the bank the money (in most cases). Hence they can sell it for what ever they like. To get the lien released means that they need to pay off the loan and any fees, back interest, etc. In some cases the lender will accept less than they are owed. This is called a short sale.
2. At auction. This is really your question. The lender can only ask for what they are owed (principal, interest, fees, etc). If the bidding goes over what this amount is then the surplus goes to the next lien in line or to the owner who is losing the property. The lender is not going to make a profit from a sale at an auction.
3. After the auction and when there were no bidders higher than the opening bid submitted by the lender the property title transfers to the lender. They won the auction. They are the owner now. The loan is retired. The prior owner might have some rights of redemption based on the process and the state. That means that they can redeem the house if they pay everything that is owed. Even if someone else won the auction the old owner who lost the house could have the same rights of redemption.
In the case where the lender is the new owner they might choose to fix up the place prior to sale or they might sell as is. In just about all cases they will list it with an agent. They might accept less than the opening bid at the auction. Situations vary based on the property, how long the lender is the actual owner and other factors related to the local market.
On July 8th, 2008 at 8:05 am
Contrary to what the gentlemen said above, the bank does not counteroffer every offer!! You will be lucky to even hear back from the agent representing the bank if your offer is not accepted!! Many times the banks will sit on offers until they get several in and then take the best one and not call any of the others back!! I don’t recommend coming in at half the value of what they are asking either. You are wasting ink, paper and your time!!!