Foreclosure house- Bank owns it: Experts - Posted by Green

Posted by JT-IN on September 03, 2003 at 18:57:35:

How long the Bank has owned and attempted to sell the property. It is a business decision for them, not an emotional one. However, many Banks have learned that they can do quite well in the resale market; (depending upon the area). Many are making money from their REO’s… or at least doing better than they ever have.

Yes, most list the properties dierectly with a Realtor, and they do pay a comm… Probably more like 5%, total.

Make an offer… What is as important to the Bank is the strength of the buyer, so if you can submit an offer with NO contingencies, then do so. If you can’t, then submit a guarenteed letter of funds availability as well as a committment letter from a Lender. Give them reason to take you as seriously as any CASH OFFER.

Good Luck…


Foreclosure house- Bank owns it: Experts - Posted by Green

Posted by Green on September 03, 2003 at 18:22:07:

Need some help-

I am actually looking at a house being listed by realtor. Its listed at 180K and is in a decent neighbourhood. All the houses for sale in that neighbourhood are also in same range.

I talked with the listing realtor and looked at the house.
The house is in good condition- Just minor stuff- need change vinyl flooring in kitchen and lawn is in bad shape…lawn needs lot of work. It been vacant for the past few(3-4) months. 7-9K in expenses needed to bring this to a perfect or “sell-able” condition.

My intension is to buy and live in it.

a)Its listed by a realtor- Does bank uses realtor to list their foreclosure homes?
b) Does the bank pay 3-6% commision to realtors for listing/selling it
c) Should I treat this houses as a regular realtor listing- OR these houses are owned by Banks and So chances are that they will entertain/aacept low ball offers.

Any info is appreciated

Re: Foreclosure house- Bank owns it: Experts - Posted by Connie

Posted by Connie on September 03, 2003 at 21:06:17:

I am not an expert, but I did buy a Fannie Mae repo. It was listed on the MLS for about 4 months, had been empty for a year, nice 2 yr. old home, but no landscaping and dead fallen trees in the back yard. They listed it at first for full market value $115K, 2 months later dropped it to 99K, two months later dropped it to 89K. They will try to make a big profit at first, when no takers they will start dropping the price. Then I did make a low ball offer (really low, but what the hey), they came back with their bottom dollar price and I ended up with the property for 85K. Found out at closing it appraised for 117K, as is. So if it is on the market for awhile, they might deal with you. But I missed out on 2 possible deals on repos this summer by waiting for the price to drop. Someone else thought they were worth the original asking price. I have since contacted the realtor that lists these repos in our area and gave her my email address so she can send them directly to me first. Just my small experience with these types of sales. And yes, the seller does pay the realty commission. They also wanted a letter of credit from a lender submitted with the offer.