I guess my question is: When dealing with the financial institutions, how close do you need to be to market if the amount owed on an existing mortgage is considerably less than market value?
Offer what you want to pay for it and see if they take it. They want to recoup all their money, but will take what they can get if the house is over priced or they want to get rid of it quickly.
Most times the bank will counter, and you can go from there.
If it is that good of a deal I would start at what the mortgage amount was. If they balk, then ask them what else they have and make a package deal to take a bunch of them off there hands. They will always counter, if they dont then you offered too much.
If you are really savvy then have them make the loan for you and to make it assumable, then find buyers to let assume the loan for a small down payment and a second for whatever equity is in the property.
We have a TON of REO's in our area, but that doesn;t mean they are all good deals. When a good property hits the market it's a feeding frenzy of investors to see who gets the property.
A bank will accept no less than 90% of asking price. If they have to drop the price, they will, and then still use the 10% rule.
Offer what you want to pay for it and see if they take it. They want to recoup all their money, but will take what they can get if the house is over priced or they want to get rid of it quickly.
Most times the bank will counter, and you can go from there.
If it is that good of a deal I would start at what the mortgage amount was. If they balk, then ask them what else they have and make a package deal to take a bunch of them off there hands. They will always counter, if they dont then you offered too much.
If you are really savvy then have them make the loan for you and to make it assumable, then find buyers to let assume the loan for a small down payment and a second for whatever equity is in the property.
Good Luck,
Kyle
We have a TON of REO's in our area, but that doesn;t mean they are all good deals. When a good property hits the market it's a feeding frenzy of investors to see who gets the property.
A bank will accept no less than 90% of asking price. If they have to drop the price, they will, and then still use the 10% rule.
Don't overpay, deals come along, just be patient.