REO Offer
I am new to this. I have found a propety that is REO and is listed for $164,900. 00. The property has been empty for a year with reductions in the original asking price of $231,900.00. I have seen the inside and there is some slight mold. There is a barn like structure that was built in 2003 with no permit. The property was purchased with a loan for $130,000.00 in 1998 and defaulted on a loan in 2005 and listed in May 2005 for the inflated price. Which is what the motgage company bid on it for at auction.
I want to offer them $50,000.00 and am wondering if this is too low for them to consider/ By the way the area it is located in has the highest forclosure rate in the country at present. Any advice would be appreciated. kdigicat
I have the FMV as $132,282.00. and with all the work new floors redo the whole kitchen both fireplaces need to be redone and the barn has to be permitted. I plan to live there and not resell.
[ Edited by kdigicat on Date 09/21/2006 ]
What is the current FMV for the property? Off the top $50K sounds too low if they are asking $165K unless you can justify your low offer. I bought an REO a few years ago in Indianapolis which at that time was one of the highest foreclosure rates in the country. That property was already heavily discounted and needed much rehab. Also, you might tell us what you are planning to do with the property if you acquire it.
Perhaps $50,000.00 is too low, but with no one interested in it for a year I thought they would want to get it off the books. With the presence of mold I figure there will be plumbing work also. So perhaps I should offer in the neighborhood of $95,000.00/[ Edited by kdigicat on Date 09/21/2006 ]
You can and should consider the use of modified applications employed in preforeclosure short sale negotiations... in your pursuit of this REO.
Denigrate lenders perception of value. Devise a defendable
and irrefutable opinion of value.
This could be a textbook process.