Foreclosure Townhomes
Need help with buying a pre-foreclosure?
Listing price is $100,000
The problem is all the townhomes in the neighborhood are listed for around 80-90k. Our realtor said we should offer 90k. How likely is it that the lendor will accept that offer. We would also like 3% closing costs paid for.
According to tax records the townhome was purchased for $216,000 in August 2006…
Sounds like the bank would have to agree on taking a HUGE loss.
Good to know banks know when to accept a loss. As for more details…
I think pre-foreclosure and short sales are the same thing, I may be wrong. I would say almost, if not all the homes for sale are in pre-foreclosure. There are a few bank owned as well. Considering these people paid $216,000 and now are listing at $100,000; I’m sure just about everyone in the neighborhood is in the same boat.
Let me know if you need more info.
You say it’s a pre-foreclosure so I must ask, Are you trying to purchase a short sale property? Also, the other homes in the neighborhood that are listed for 80-90k, are they foreclosures or private owned homes? I ask because both situations will affect how much you should offer and which concessions you are likely to get.
I’ll go ahead and give you an example of how large of a loss the banks are willing to take. There is a home here across the street from me that is currently pending. The list price for the home was $38,700. The home was foreclosed on in September of 2006 with a defaulted loan amount of $142k.
Ok, the difference with a short-sale is that the owner of the home has negative equity in the home and is trying to sell it for less than what they owe to satisfy their loan with the bank. This requires the banks approval of course. This also affects the bargaining power a purchaser will have because it’s not up to the owner.
Something you may want to find out is how far into default the owner is. If you know how far away the sheriff sale is, you will know how long you have to negotiate.
Another thing to consider is the fact that this home is priced higher than the surrounding homes. Someone looking to purchase a home in this neighborhood is more likely to look at the homes with lower price tags, meaning that the home you’re looking at isn’t getting as much buyer traffic as the others which increases your leverage in negotiations.
I would request that you have your Realtor show you the recent home sales for the neighborhood so that you could make a well educated decision.
One last thing. There have been agents in my office that have had buyers put in bids on bank owned homes for half of the listed price and the banks have accepted them. We are in uncharted Real Estate territory where nothing would cease to amaze me anymore.
Naples Florida Townhouses Stratford Place Foreclosures.
