I'm trying to negotiate with an owner to buy his home that is in pre-forclosure. In your experience, how many owners are willing to make this kind of deal?
I don't know yet how much he owes on the home. I'm hoping it will be in my price range. If not, I'll ask if he'd work with me on a short sale. He should qualify as his recent divorce and stagnant real estate market has left him unable to sell his home and business. On average, how much are banks willing to lose in a short sale?
There is no "on average" amount banks are willing to lose (anymore). These loans are owned by thousands of different investors and they change hands quite frequently. There is no "ordinary" situation.
Couple important questions:
Why do you want to buy this particular home?
Is it for a primary residence or for an investment property?
Why do you want to buy this particular home? / Is it for a primary residence or for an investment property? We like the home and intend to buy it as our primary residence. The owner has had it for sale for several months. His price is out of our range, but now that he's running out of options we're hoping he'll negotiate with us.
What is your relationship with the home owner? We don't have any dialogue going just yet. I was going to get a letter with our intentions tomorrow
What do you mean by "it's in pre-foreclosure"? His home is in pre-forclosure. Status: LIS
Considering the fact that he has been served a lis pendens, it is important that he notify the lender immediately that he has a potential sale. This would most likely cause the lender to postpone the foreclosure.
I would meet with the home owner as soon as possible just to determine if he is willing to work with you or not.
I contacted the owner directly, but he's not interested in selling. He's going to try to work things out. He's over $30k in arrears and has other properties he's trying to hold. I think I'll be standing on the courthouse steps shortly. . .