How is a foreclosure price determined?

Once the par market value is established, the starting asking price is then determined by calculating how much work needs to be done to bring the subject property up to par. As a rule of thumb, most foreclosures go on the market initially at par value minus repair costs, give or a take a couple of bucks.

What does plaintiff max bid mean in a foreclosure?

Plaintiff banks can post a so-called maximum bid — meaning once bidding exceeds that number, the bank cannot bid further. Feinberg said it would be in the bidders’ best interest to have an attorney look at the title issues before bidding.

Can you negotiate foreclosure prices?

Banks are willing to negotiate foreclosures because they are losing money on the property when it sits vacant. Banks can negotiate directly with buyers without the assistance of a real estate agent. Because they own the property, banks can set the price for any value they deem acceptable.

How much should I offer on an REO?

As you can see, there are a few too many questions here to provide an accurate offer. But if pressed to “ballpark” it, I’d say take at least one-third off what you’d otherwise pay for a like-size, good-condition conventional home, particularly given the glut of distressed units.

Can you offer less for a foreclosure?

Ask About the Number of Offers Received If there are no offers on the REO home, you can probably offer less than list price and get your offer accepted. However, if there are more than two offers, you will most likely need to offer above the asking price.

What is a final Judgement amount on an auction house?

Amounts. The final judgment amount in a foreclosure case is how much money is owed on the foreclosed property. The final judgment amount is typically what is listed at auction when a foreclosure is put up for sale.

Can you make a lower offer on a foreclosed home?

If there are no offers on the REO home, you can probably offer less than list price and get your offer accepted. However, if there are more than two offers, you will most likely need to offer above the asking price.

How much will banks negotiate on foreclosures?

Mortgage lenders sitting on foreclosed homes, though, may consider negotiating somewhat over their homes’ list prices. Discounts off foreclosure homes’ list prices vary by location and typically run between 5 and 10 percent when lenders actually do discount.

Can you negotiate price on a bank-owned home?

Remember however, that you’re dealing with a bank, so more than just the price is negotiable. If you get your mortgage from the same lender, you may be able to negotiate other aspects of the deal as well, such as the interest rate or closing costs. 9. Similar to a foreclosure, some REOs made need extensive repairs.

Can you lowball a bank-owned house?

You Can Lowball the Bank and Get a Huge Discount. Since banks are usually desperate to unload a foreclosed home, it’s easy to assume they’ll accept any offer. It may be true that banks have no interest in owning these properties, but they still need to make enough to service the defaulted loans.

Can you make a contingent offer on a foreclosure?

It is highly unlikely that the bank will accept a contingent sale. In some rare cases they will, depending on that particular property. It’s best to contact the listing agent so they can help you and to see if there is a possibility of the bank accepting a contingency.

What is the asking price in a foreclosure?

In a foreclosure, as in any home sale, the asking price is simply the starting place for negotiations. The following is an example of how the process of buyer’s offerings may work. This should help you understand the process behind each offer and price.

How do you calculate the foreclosure discount?

What’s common in these analyses is the computation of the foreclosure discount using the median (or average) sale price of foreclosures compared to the median sale price of non-foreclosures.

Is the final sale of a foreclosure lower than an offer?

In some cases, the final sale might come in lower than some of the offers. When a bank-owned home comes on the market as a foreclosure home, it can attract many buyers if it’s priced attractively. Say, for example, the bank wants to sell the foreclosure for $250,000.

How do I make an offer on a foreclosed property?

If the property is a foreclosed home, then more than likely you will be making an offer to the lender who has acquired the property. You should only make an offer after you have created a wish list, looked at several properties, and have compared and contrasted your findings,…