You may want to check how this works in your state with foreclosure investors or a foreclosure atty.
I believe in some states that the homeowner does not get the excess amount-the lender, if the high bidder would get to keep whatever profit they make during the resale(REO). If it is a high equity situation and the lender is outbid then the homeowner would get the excess after late fees,atty fees,etc. are totaled. Homeowners have a lot of ideas about how their situation will magically turn around at the last minute-another reason they are stubborn.
Well, I followed up on my foreclose deal. I offered to assume the existing mortgage ($33,000) and make up the back payments. The house is valued at about $160,000. The seller wouldn’t budge. This is the last week before the bank forecloses. I don’t understand what I’m doing wrong here. The seller said she would rather lose the home to foreclosure than “give it away” to me, an investor. I didn’t believe her reasoning. I really think she’s waiting for a miracle and someone to buy the house at full retail value this week. I explained to her how I could help her save her credit and get her out of this mess. She didn’t want to hear it. Has anyone else faced this situation before - when a seller is welcoming a foreclosure with open arms? I just don’t get it.
Posted by steph in tex on April 03, 2000 at 19:03:18:
this is just my perspective…
but…
why just offer to save her credit???
33K??
give the lady some cash! for pete’s sake! if the property is worth 160K…???
offer her 83K and pay all closing cost- use hard money-
leave something on the table. i always try not to get greedy, and i try to ALWAYS leave some cash on the table,.
looks like…
THERE"S PLENTY OF ROOM IN THIS ONE… give the lady some cash… help her out… offer to have her moved…
Posted by JoeKaiser on April 03, 2000 at 14:54:55:
What’s in it for the seller? Saving her credit? That ain’t gonna do it.
I suspect a little dough might help.
You need a better approach.
It’s likely that if she just lets it go to foreclosure sale, someone will bid it up to over a hundred grand, and if the choice is between having her credit saved and picking up a check for $70k, I’m betting she’ll take the $70k every time.
Posted by Anthony Henry on April 03, 2000 at 15:31:02:
Hey Joe Ive got a question. In all my research surrounding Foreclosures it seems I must have missed a vital ingredient here. Are you saying that in this case the seller owes roughly bout 33K. The property is comp at $100 for argument sake. Now the property goes to sale. Are you saying that everything up and above the mortgage amount goes to the seller???
My GOD if this is the case no wonder they are so darn stubborn at times :).