Foreclosure costs in Baltimore City

[Sebastian E.]

I am working on purchasing a short sale pool of 5 properties in Baltimore City. They are all tenanted in a decent area. I haven't been able to come to terms with the lender with my offer and we are currently about 100k apart. My sense is that they are underestimating the costs of foreclosing on these properties and then dealing with the tenants post foreclosure to resell them.

Does anyone have a sense of what the costs of a foreclosure in Baltimore City would be? I'd like to present an argument to the lender that they would be better off taking my offer rather than move to foreclosure.

Any thoughts @Ned Carey?

[Tom Gimer]

Depends on the sale price. There is typically a ~5% trustees' fee in the DoT, plus costs and expenses of sale.

Tenant occupants may also have rights to purchase on terms close to yours. And if they aren't vacant but being foreclosed that raises other issues I would want answers to.