How do i get the amount that the bank foreclosed on.

Question

Wayne Brooks · Answer

@Miguel Romero How much the former owed is the most irrelevant thing you could look at, and be of absolutely no help in determining a proper offer.

Jassem A. · Answer

The amount the previous owner owed the bank might exceed what the bank is trying to get for it.  The trustee auction is where you might get it for what is owed on the property because at that point the auctioneer is acting as a debt collector for the bank and not it's realtor. If no one bids on it at the auction then it is deeded back to the bank and listed with a realtor. Some banks are not very flexible with pricing but they are also not in the business of owning real estate and it will be the call of the asset manager. Private homeowners tend to be more flexible.

David Dachtera · Answer

@Miguel Romero,

@Ron S. hit it. You want to compare the bank's asking price to the comparables on the property which will indicate what the house should sell for in good condition. The difference between the comp.'s and the lender's asking price MAY give some indication of the property's condition, it may not.

David J Dachtera

"Success is not a destination. Failure is not an event. Success is a process, failure is a choice."- DJ Benedict

Ron S. · Answer

I get it Miguel...but again, your offer should have nothing to do with what the bank foreclosed on. Your offer should be based on what the property is worth, compared to what you are willing and able to spend to acquire it. There is your formula. "Buy low, sell high" is your formula.

If the bank is asking $119,000 it's because their formula says that is what its worth. Your job is to find a flaw in their formula. Is there deferred maintenance? If so, how much? Do the comps in the area support that selling price? if not, what do the comps support? Is it for investment purposes and if so, what is the needed rate of return for it to be a viable investment? Is it for personal acquisition and if so, what makes it desirable? That kind of stuff is what you should be looking at, not what the bank foreclosed on it for.

Miguel Romero · Answer

@Ron S. @Wayne Brooks reason I asked was because there is a property that shows the foreclosed amount to be $79,800 and the bank is asking $119,000.  Si I didn't know really how low I could go. I don't know if there is some sort of formula.

Ron S. · Answer

Agreed...that's like asking what the original owner paid for a new car five years ago, that is now sitting on a used car lot. what they paid (or owed) has nothing to with what you might pay or what it's potentially worth.

Mike Bicho · Answer

@Chad Urbshott, thank you

Kris Haskins · Answer

Man, u just never know what these banks are going to do.  I've seen them 4close on homes where the person owed over $200k and they end up selling for $100k after being listed.  I've also seen them start with an opening bid over the amount owed, u just never know esp. since some of the banks got bailed out and have no incentive to sell....  good luck...

Chad U. · Answer

@Miguel Romero @Mike Bicho

Generally it is referred to as a Judgment or Final Judgment of Foreclosure, they are often abbreviated as JUD.  You need to look in your County Recorders section for public records, typically under public searches.  They may or may not be filed with the Deed to the property.   From my experience, every  county is different, and many require you to pay to access these documents.  If this is the case, then your search will be fruitless unless you pony up the dough.  Also, states like Texas, which are non-disclosure will not publish any of this online.

Fees that get tacked onto a Final Judgment can include:  Outstanding principal, past due interest & taxes, PMI, appraisals, property preservation, servicing fees, insurance premiums, property inspections, court costs, filing fees and last but not least attorney's fees.

Hope this helps.

How do i get the amount that the bank foreclosed on.

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