How To Put A Home Under Contract When It's Bank Owned?

Question

How?  I'm a newbie just learning but I have a situation where is 
  appraised for $140k & they are asking 66k.  It's about 30yrs old & has
  been vacant for well over a year, but the bank owns it.  I would just 
  love to flip the contract to an end buyer.

Damien

Tom C · Answer

Not trying to be critical here, but 2 people have now seen this property listed and think it could have been a good deal, but failed to go look at it..

Folks, you are not going to make it, if you don't learn to move fast.  If you think you have a deal, go look at it.

Jimmy Farag · Answer

I think that property that you were talking about and i thought the same thing to buy it and wholesale it. but i stopped because it's been listed there for a while and i am pretty sure that there are investors who came across it. I haven't looked at it either.

Jon Holdman · Answer

It doesn't kill the deal, but it makes it tougher.  You might be able to double close.  You might be able to close, then resell it.

You need to be sure its really a deal.  Just because its priced so far under the appraisal doesn't mean its even worth the price they're asking.  I've looked at more than one REO recently that was honestly worth less than the value of the land.  The houses were so badly damaged they were nothing but teardowns.  But, it costs something to raze a house, so they're not even worth the value of the land.

Jon

Account Closed · Answer

thanks wheatie.  I havn't physically been out to look at the property 
  yet but got word it's been sitting up awhile & the landscaping is
  horrible..but I'm sure it's much more.  So  the bank not allowing me
  to assign the contract kills the deal as far as trying to wholesale it???

Is it dead already?

Jon Holdman · Answer

If its listed on the MLS, you make an offer on it though a real estate agent, just like any other house.

Banks generally will not allow the contract to be assigned.  They will have you sign an addendum that specifically says this.

You might be able to double close, but the bank my try to control the title company.

If its listed on the MLS for $66k and its really worth $140K, ask your self why someone else hasn't already bought it.

Jon