Posted by John on October 17, 2005 at 21:23:24:
I won’t say it can’t be done. What you are doing is trying for a short sale after the auction. Why not contact the owner and try this approachwith the cooperation of the owner prior to foreclosure sale.
In my area the banks after the sale it is automativly listed with an agent.
property available after auction - Posted by Paul
Posted by Paul on October 17, 2005 at 19:04:47:
What is the best way to negotiate with a bank of a property that is not taken at the auction? How willing are they to accept a discount? Is there a certain percentage that they accept? House has $117,000 plus interest in the paper that is owed? It needs repairs that I am sure the bank is not aware of. I was thinking to attend the auction and see if the house is snatched up. If not then immediately after offer the participating lender about $80 to $85000 with a complete package of why I am offering this amount. Does this sound like something that can be done?
Re: property available after auction - Posted by Tom¶
Posted by Tom¶ on October 18, 2005 at 15:56:20:
Paul-
As soon as a bank starts the foreclosure process the bank asks
local realtors to perform a BPO (Brokers Price Opinion). This is a
market analysis of what other houses on the street, and area in
similar condition are selling for. They have this done shortly
before and shortly after the Auction. Point is- it is a myth that the
bank is dying for anyone to buy the house. They have the
information and know what market value is. They sell it
accordingly. Right before it goes on the market- 1 to 3 realtors
have taken interior pictures and informed the bank on condition.
In my opinion REO’s are a great place to purchase homes you plan
to rent or buy to live in because they are generally 5% to 15%
below market value. The homes are generally pretty neglected.
People don’t choose lose their homes. They are the product of
divorce, death of the main bread winner, illness. If they can’t pay
the mortgage- chances are they are not fixing the roof when it
leaks, windows when they break, or updating.
I flipped an REO earlier this year and only made about $10,000.
Once I got in there I found a lot of things I had to address. I spent
4 months on it and for the time and energy- I won’t do it again.
Spend your time on pre-foreclosure and help someone out. It will
be a win-win and you will make a lot more money.
Good luck!
-Tom