What Does It Cost Bank To Foreclose?
Hello all, I am submitting info to the bank on why they should accept my offer. I am wondering if there is an industry standard on costs to foreclose for the bank. What kind of fees and how much. Attorney fees, court costs, their paperwork etc. I can pretty much figure out the taxes, holding costs and commission for my area but I am not sure what it costs the bank to follow all the way through on a foreclosure. Any info you could pass on would be greatly appreciated. Thank you God bless Marty
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Hey there
I guess it might not be the same in all parts of the country, and I don't know if there is an industry standard. Others may have a more expert opinion.
But I will tell you that I've followed one particular property closely for the past three years as it went to foreclosure three separate times (and was stayed each time by the owners' filing bankruptcy). Each time, the opening bid increased (while the condition of the house deteriorated) by about $6,000 -- now that could be $2,000 in legal costs and $4,000 in payments missed, but you have to figure in those missed payments, (in this case, about $900/month) too. Hope that helps.
Joni