House in Pre-Forclosure...Is this a deal?

Question

I got a call from a lawyer about a client stating they were going into pre-foreclosure and wanted to get out the deal before it goes into foreclosure. It's a 3/2, a little over 1816 sq ft on about 10 acres with an ARV in the low 200s. He stated they are willing to let it go for 160k. It's going to need about 5k in repairs.

Should I talk them down?

I'm thinking mid 120's would be a fair offer.

Any other suggestions?

Should I talk them down?

I'm thinking mid 120's  would be a fair offer.

Any other suggestions?

Mark Bosworth · Answer

You should perform your due diligence and understand what the mortgages outstanding on the property are.  If this is going to be a short sale, then you are going to be negotiating with the lender instead of the owner.  Regardless of who you are negotiating with, the outstanding debt balance is a key piece of information you need before you make any offer.

Jay Hinrichs · Answer

just run your numbers and give it your best shot... I would ask attorney whats owed.. you don't want to waste a ton of time if they owe 160 and don't have the ability to sell it to you for 120

Leah Bonner · Answer

I would just ask the home owners, Either ask if they will sell for what they owe (or just ask how much is owed on the loan)

If the wont take lower just tell them "I am willing to buy your house today and save your credit, what is the absolute lowest you will let this house go for?" See what they NEED to walk away from the house, maybe they'll just need 10k for moving money. but like stated above if they OWE 160, you dont have much wiggle room. You'll never know till you ask.

BJ Henderson · Answer

The lawyer wouldn't disclose how much they owe. They've owned it since 1996.

Is there any other way for me to find out what they owe?

BJ Henderson · Answer

Thank you very much.

House in Pre-Forclosure...Is this a deal?

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