Your Questions About Foreclosures | foreclosureorder.com

Your Questions About Foreclosures

Your Questions About Foreclosures

David asks…

Can someone explain what determines the sale price of a foreclosed home?

A friend of mine had their house foreclosed on in October 2009. The minimum acceptable bid was $880,000 and the house did not sell at auction. They did try to do a short sale and had an interested buyer but the bank did not accept the offer for $800,000. Friends moved out of the area and asked me to check to see if their house was sold. I checked and found out that they were selling the home for $359,000 and a sale is pending. Can someone explain to me how this makes any sense?

Your Questions About Foreclosures

The Expert answers:

Banks can be difficult to work with. A matter of fact only about 10% of short sales go through. That being said, there actually may have been some logic in your friends case.

Without knowing the details of your friends situation, I’ll share a scenario.

Fact: A short sale has to be approved by all parties. If you friend has a 2nd loan holder that was different then the first, the 2nd has to agree and accept what little money the first is willing to give them for the short sale to go through. TO give you an idea how little the 2nd may receive, one bank offers $3000 to the 2nd if it amount is under $100,000 and $5000 if it is over $100,000. That’s it! Sometimes the 2nd rejects the offer because they can get more money if the sell the debt to creditors ( Watch out , depending on the state and the type of loan they had, creditors have 4 years to collect any un-recovered debt.).

If the 2nd doesn’t agree, then the 1st lender can’t get the offer accepted and may just cut their losses and foreclose.

Your Questions About Foreclosures

Michael asks…

Homes for sale and foreclousures.?

Do any one know of any websites that you can go to and look at homes being sold and foreclosed and they actually show pictures and home info etc….? Most of them want you to subscribe and fill out all that crap and they send you riduclous amounts of emails. Im wanting websites with out that. for ex homes.com is one. Thanks much appricated!

Your Questions About Foreclosures

The Expert answers:

The websites won’t help because banks don’t sell their foreclosures (called REO) directly, they list them with Realtors. You might try realtor.com

realtor.sailor

Your Questions About Foreclosures

Susan asks…

MLS Listing info of foreclosed homes?

Does the MLS listing of a foreclosed home that has been Rehabed and ready for sale, contain information about the foreclosure history of that property. Does it list the amount of debt owed and what price the property auctioned etc etc

Your Questions About Foreclosures

The Expert answers:

The MLS in my state, lists all of that, you can go back several years.

The mortgage amount, and auctioned price will appear, but not the exact amount owed. However while it is in preforeclsure status you can obtain the deficiency amount, so I am guessing if you pay to print up the actual foreclosure docs that data will be there.

Your Questions About Foreclosures

Paul asks…

How do you go about getting lower comps for a short sale package?

I need lower comps from either reo’s or foreclosed homes
that I can send with the short sale package
That are near the same vicinity of the home
How do you go about getting these ???

Your Questions About Foreclosures

The Expert answers:

Title companies and people who have access to the MLS. Don’t forget to give a copy to the person doing the BPO as well.

Regards

Your Questions About Foreclosures

Mary asks…

Would 20% below asking price be reasonable on bank owned foreclosed home?

I am interested in purchasing a foreclosed home the bank owns. The asking price 107,900. Would 20% below asking price be considered unreasonable in west tennessee? That would make my offer a little over 86,000. Do you think they would even consider that? I know nothing about purchasing a home or real estate, and this would be my first home. Of course, I want to get as cheap as possible, but I don’t want them to not take my offer seriously. There’s many homes up for sale in this area that’s cheaper, other foreclosed homes, and plus knew homes being built, Asking prices range from 80000 to 130000. It’s been listed for a while. I know nothing about this, so I was just needing a little head ups. I will be working with a realtor but I want the realtor to also know that I know somewhat of what i’m doing. I’ve already been approved for my loan and paperwork is being drawn up, I heard this helps when making offers? Is foreclosure the way to go? Does it take a lot longer and is it pricier
I meant to mention the house is listed through a real estate company, don’t know if this matters.

Your Questions About Foreclosures

The Expert answers:

Your agent will prob tell you that’s to low. That’s a lie. They are obligated by law to present your bid to the owner. Stand up and tell them that’s your bid. If they are still reluctant then thank them for their time and find someone who wants to represent you, not just keep their commissions up.

If you don’t ask you don’t get. Be prepared to raise your bid and more importantly be prepared to move on this if your offer is accepted. That means be pre-approved for the loan. No one will take you seriously if you don’t have the money.

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Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures

Your Questions About Foreclosures

Your Questions About Foreclosures