Posted by gerald(tx) on June 11, 2006 at 15:03:24:
The amount owed at foreclosure is immaterial to the lender at this point. He merely looks at it as having a non-performing asset to dispose of, and would like to get as much for the asset as they can.
The 70% ARV formula is great for a person rehabbing junkers, but when you step up to higher end properties such as this, it doesn’t apply so much. Common sense should be your guide.
And since this is going to be your personal residence, and don’t want to let it slip by, you can offer enough and still get a good buy. Start low and counteroffer higher to the point where you are happy.