Posted by JT-IN on July 16, 2003 at 09:27:33:
Who are you making the offer to…? The homeowner or the Bank… ?
The Bank does not currently own the property, so the only thing they can do is 1) Negotiate a short sale, by agreeing to take less than what is owed. 2) Sell you their note & mtg, 3) Negotiate a theoretical sale in that event that they buy the property at sheriff sale, providing it goes to sale.
If you are negotiating with the Homeowner, you need to stop right where you are… Reason being, you do not understand the impact of the IRS Lien, if you buy this from the HO… The lien will not be gone in 6 months of ownership… as you suggest.
If the Bank buys the property at Sheriff sale, they will then become the owner, in fee-simple. They can then ask whatever they want for the property, subject to the Banks Charter. There may be some limits (self-imposed) as to what they sell foreclosed assets for, but barring that, they can make as much $$$ as any other investor in that situation.
Please clarify who you are negotiating with.