negotiating with the bank

7 Replies

So here is the situation, I had a guy call me off of my truck signs he is currently paying 2 house payments and is wanting to get out from one. He is current on his payment but he owes around 53k. He also told me he would like to get around 5k equity out, I really would like to help him out, but by my figures this may be high on the price for myself or another investor to buy this from him. So my question is can he negotiate down what is owed even though he is current on payments?

A shortsale is very unlikely if you aren't behind on payments. Also, the price may be high with respect to your investment criteria but that doesn't mean his property isn't worth what he owes to somebody else such as somebody looking to occupy the home. The bank will likely not have the same valuation as you. 

@Rob Beland I have found that in my market you have buyers that are looking for deeply discounted prices on houses that needs what I would consider light repairs, and you have the people looking for perfect houses with nothing to do to them there is really nothing that sells in between. Thanks for the input, I figured that the bank in no way shape or form negotiate, but I would rather ask here first to find out, thanks again.

Assuming the bank is willing to take a bit of a loss, the bank certainly isn't going to do so AND let cash go into the seller's pocket ...

Thanks for the input guys I was figuring what you all told me to be the case to begin with but it never hurts to ask. Thanks again and may you all be blessed.

With all honesty I believe the house is worth what he needs out of it. Sometimes the extra cushion built in helps, but I believe you could make some money off of the deal if you do your fixes and upgrades correctly.

Originally posted by @Brent Fleeman :

So here is the situation, I had a guy call me off of my truck signs he is currently paying 2 house payments and is wanting to get out from one. He is current on his payment but he owes around 53k. He also told me he would like to get around 5k equity out, I really would like to help him out, but by my figures this may be high on the price for myself or another investor to buy this from him. So my question is can he negotiate down what is owed even though he is current on payments?

If the seller is experiencing some form of 'extreme financial difficulty' that may adversely affect future payment, it would be in the interest of all involved. You just need to explain things to the bank. If the seller has the capability to perform though, the bank obviously wants as much as they can get.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.