What's the earliest you can make an offer on a foreclosure?

1 Reply

I am currently looking at a foreclosure in my area. I saw a "For Sale By Owner" sign out front and decided to stop by and ask the owners if I could look around. The property needs some work which I am OK with, but I think they must be in over their heads. My valuation puts the house at around $250k, but they will not go lower than $300k. They had 4 offers that all fell through and finally decided to let the house go back to the bank.

I checked the county records and it appears the bank bought the house back in June for $260k, and they have until December to pay their loan back. If the owners won't take an offer below $300k, do I wait until December for the bank to take it back, or can I make the bank an offer now and save them the hassle of putting it back on the MLS?

Thanks for your help!

Originally posted by @Mark Softich :

I am currently looking at a foreclosure in my area. I saw a "For Sale By Owner" sign out front and decided to stop by and ask the owners if I could look around. The property needs some work which I am OK with, but I think they must be in over their heads. My valuation puts the house at around $250k, but they will not go lower than $300k. They had 4 offers that all fell through and finally decided to let the house go back to the bank.

I checked the county records and it appears the bank bought the house back in June for $260k, and they have until December to pay their loan back. If the owners won't take an offer below $300k, do I wait until December for the bank to take it back, or can I make the bank an offer now and save them the hassle of putting it back on the MLS?

Thanks for your help!

If the house goes back to the bank, the bank will process it and eventually, usually in a few months, it will hit the MLS at whatever amount the listing agent thinks it will sell for. Currently any offer to the bank would be rejected since apparently the house still belongs to the owners & would require the owner's approval anyway.

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