REO Property - Posted by DC

Posted by Ronald * Starr(in No CA) on August 18, 2003 at 20:13:09:

Danny C.-------------

Sure, banks can take a profit on the sale of a property if they can get it. They are the owners. They can sell for whatever they want, provided that the market will pay that amount.

The typical foreclosure costs a lender something like $3K in loss. That was the figure a few years ago, anyway. Some properties are greater loss, some turn a profit. So that figure is an average.

The only think you can do is wait until HUD puts the property up for sale. In most areas of the country the asking prices on HUD houses are full market value. In some areas the houses might sell for less. As you don’t say where you are, it is hard to predict what will happen for this property.

In general, it is not wise to spend much money trying to get any one property. This is a game of numbers. You have to consider a lot o properties to find a few great deals. Desiring a particular property is not a good investment stance. I advise you to not care if you get any particular property. Only start getting excited after you own a property.

Good InvestingRon Starr**

REO Property - Posted by DC

Posted by DC on August 18, 2003 at 18:11:09:

I found an REO property via the web [on a foreclosure site] and the listing indicated the amount of the foreclosure was $8,100.00 [may be wrong, prop appraiser site indicated last sale in 1999 for $45,500.00]. When I contacted the bank, I was told that the property would be going to HUD and to check with them in about a month. The person continued to tell me that I wouldn’t want to buy the property from them directly as they would have to ask for something in the ball park of $44,000.00 so as to recoup their foreclosure costs [and I do want it for less than that].

Can banks make a profit on REO’s? And, what does it typically cost the bank to process a foreclosure? I’m really interested in this property. What should I do for a next step?

I appreciate any help you can provide.