Bank Owned Foreclosure and Offers

[Nick Dillaha]

Question BP family, Do banks ever accept cash offers less than they get a property back for? For instance, I’m looking at a local foreclosure and the price is $90k, and the county website shows they took back the property at 90k. Do they ever accept lower offers if paid in cash?! The ARV should be around $160k to be safe and needs around $25k in repairs. Thanks!!

[Ray Johnson]

@Nick Dillaha depending on how long the Asset Manager has been holding this maybe you can offer much lower, Are you looking to offer more than 15% below list? The location and activity in that market will also play a part in the Asset Manager decision to accept more than a 15% discount. Because of the price point of this property you'll be limited to how low you can go. The Asset Manager can't go to him VP and say he sold a unit for 50% of list. The answer is yes, the property I got for $199,000 from Bank of America I put $27k into and it appraised at $305,000 after rehab. I purcased it to add to my Buy and Hold portfolio but I have been thinking about selling it to take the money now and move on to the next deal.