Houston, TX · Member since 2017 · 9 posts · 1 vote
Hi Everyone,
Still relatively new to REI. My question is, if you know how much someone owes on their mortgage and they are in pre-foreclosure, generally, what would you initially offer?
Would you offer what the same amount of the loan? Or, a little higher, a little lower (short-sale, right?)?
@Christy Tay, you should determine what your "best and final" Offer would be (regardless of why/how it came up for sale), then work backwards from there (never exceeding that b&f price)!
Whether you should start closer to their payout amount, or your Maximum Allowable Offer, will vary depending on the "feel" you get from them along the way. Not an exact science.
Obviously if a lower Offer than their amount owed is NOT accepted, then that means they are NOT allowing it to be a short-sale. But that's not YOUR concern. Stick with YOUR numbers! Good luck.
I'd be basing my offer off ARV and FMV. If it's a short sale, mortgage amount plays no role on what to offer. Mortgage amount is an important factor if looking for a subject to transaction or for other reference / negotiating reasons.