Posted by Bill K. (AZ) on June 06, 1999 at 19:17:49:
First of all, try posting this question over on Newsgroup I. You’ll get more responses.
Secondly, just a correction in your terminology. If the foreclosure/trustee sale is not until July 1st, you made an “offer”, not a “bid”. Bidding is what you do at the auction on 7/1. Offers are what you make to sellers.
Now, what is the amount of the outstanding loan(s) on the property? Perhaps your offer was countered because you offered less than the amount to pay off the loan(s) on the property. This would create a deficiency for the sellers. If they can’t make their monthly mortgage payment, they probably aren’t too excited about accepting an offer that requires them to pay a deficiency.
So, check on the loan balance. If it were, say, $53,000, and you add in the arrearages, the seller might not want to take less than $58,000 to get out with his/her hide. On the other hand, if the outstanding loan balance is $43,000, and arrearages total $4,000, I wouldn’t offer more than $47,000 to bring the loan current, take over the loan “subject to”, and get that deed. Once you get the property, you might be able to negotiate a discount on the balance directly with the lender. Does that make sense?
Your seller is getting close to “ultimate motivation”…a foreclosure on the old credit record is looming just a few weeks away. You can ease his pain, and get a home for yourself at a good price. Make a counteroffer armed with the facts. Don’t blindly counter higher just because the seller wants significantly more than you’re willing to pay.
I hope this helps.
Bill K. (AZ)