Making an offer on a foreclosure
I was wondering if anyone new the percentage range that banks want to receive from a foreclosure sale? For an example some banks want to make at least 84% of the list price. So on a home costing $199,900 that would be $167,916.
Offer what you think works for you.
Banks want full market value if they can get it.
If you put in 90% of list with zero contingencies, they might consider it if there are no other real offers on the table.
If a lot of investors are interested in the house, expect to pay over list with all cash and zero contingencies.
Hi Christopher,
I will keep that in mind. I know you have to keep in mind the number of days the property has been on the market. I have heard that banks have a bottom line percentage that they want to obtain for the properties. Some are at 84% and others are less. All depends on how hot the property is and if they have multiple offers for it.
#2 Foreclosures Contributor
- Paradise, CA
Originally posted by @Carl B.:
Hi Christopher,
I will keep that in mind. I know you have to keep in mind the number of days the property has been on the market. I have heard that banks have a bottom line percentage that they want to obtain for the properties. Some are at 84% and others are less. All depends on how hot the property is and if they have multiple offers for it.
I would not plan your strategy on what you think the bank's bottom line ratio is but instead, what YOUR bottom line ratio is. DOM means less in this environment than it did a couple of years ago. While yeah, each day on market, interest continues to accumulate (assuming there is still a loan) and/or maintenance costs accrue, taxes become due, HOA's may become due, etc. but, at least in this market, it also appreciates daily by some amount.
For what it's worth, I have loans in my portfolio I completely charged off in 2011-2014. in 2018, I'm sending intent to foreclose notices because values have come back.