How much to offer to a bank on a foreclosed house?
The house is appraised for $120,000. It is going to auction October 3rd. I want to get it before it goes to auction. I have a realtor helping me but they have not got back with me. I talked to them about a week ago. How long does it take to get an answer back from the bank? We are already approved for a loan. Should I call the bank and try to make a deal with them? Can I get a better deal if I get financed through them?
I know that around here. NO houses are selling. One of our biggest employers that has 7,000 plus employees is going out. Nothing is selling. We live in Ohio. DHL/ ABX if you know what they are.
October 2nd, 2010 at 6:25 am
It can take months, especially since you are financing. Usually they want cash…..or at least mostly cash.
You can’t deal with the bank, you have to deal with agents, banks have no staff licensed to sell, they have an agent.
You need to offer pretty close to the 120k, with as much of that cash as possible.
The agent can find out if there are other offers, if they are “strong” or not, sometimes they will tell if there is a full tip (all cash at or above asking).
In CA houses are appraising under value and the foreclosures are selling above asking price. I keep missing out! The banks are not even calling to ask if I want to up my ante.
October 2nd, 2010 at 6:51 am
They usually won’t deal with you before the auction knowing they will probably get a better price if there is competition!
October 2nd, 2010 at 7:06 am
the bank is going to have no incentive to deal with you before it goes to auction. however, if the property clears auction and doesn’t sell, you will have a lot more leverage. it does not sound like you are dealing with a very good real estate agent, being that they don’t return your calls in a weeks time. keep in mind though that most of the time when you guy a home from a bank that is foreclosed, you are waiving the right to home inspection and you are buying essentially as is. make sure that you get your own independent home inspection done. chances are, the bank will not pay for anything that is wrong with the house.
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