Quote:
Originally Posted by ranchlandsselling
I always look - but I don't often see value that's different than maybe the usual listings. Or, the ones that might have better value (crappy shape ones) don't show any pictures so I'm not as intrigued.
What would make the foreclosures more interesting is a back story.
"This wonderful bungalow, on a busy street, in poor shape, beside a dirty 4-plex was purchased by a couple that thought they'd flip it in 24 weeks and make a killing. Unfortunately when the price declined from $400,000 by 15% and they couldn't make the payments anymore they vanished. Glad we approved a 35 year mortgage for 95% at the time, now that it's at 85% of what we originally underwrote it at and a 105% LTV we're listing it for a steal at $390,000. Although there's some weird stipulations about coming to see it and we've got one picture of the front from 2008.
"This beautiful home in Aspen was "supposedly" purchased for $1,200,000 newly constructed in 2008. We say supposedly because we're now not sure how a guy with stated income of $600,000 annualy, 2 luxury SUV's, a boat, suddenly couldn't afford it anymore and vanished. Our lawyer, broker and BMO underwriter all checked it out. If you google street view it to get an idea of the neighborhood you'll notice the previous owner drove a Large H2 and a Porsche Cayenne. This shows you it's a classy neighborhood! If you can't imagine how wonderful it would be to live in this neighborhood go ask the neighbors. They'll rave about how much the prior owner, a real modern day hulk hogan and his 2 pit-bulls loved the quiet street, enjoyed sitting outside with the dogs, enjoying the west facing backyard and sunsets. If you come for a tour you can actually see plenty of his stuff laying about and see the lifestyle he enjoyed so much. Only $1,099,999"
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Some foreclosures are over priced, some under priced and some right at market value. The ultimate deal is had in the negotiations. A bank is much more willing to negotiate than say the owner of a property who has sentimental value with the place.
If a foreclosure is at or slightly above market value it may sit around for a couple months as the bank is only looking at close to asking price within the initial listing period. After a couple months goes by the bank is much more willing to look at any offers.
To be honest, there is a ton to know about foreclosures.
Also, a difference between bank owned and court of queens bench properties which is so in depth I am going to save the explanation for another night.