How Flexible are Banks on Foreclosures?

By
Real Estate Agent with Century 21 New Millennium

Time and time again the question comes up from my clients, How flexible are the banks on a foreclosure property?

Well based on my experience with these type of deals, more and more banks are paying for closing costs and will negotiate on the sale price.  Of course they want to make the most money possible on a sale but it never hurts to make an offer.  The best they can do is accept it or Counter-offer.

My last foreclosure deal closed and when all was said and done, the bank payed 3% in seller subsidy and accepted a sales price of $5000 under list price.  It's all about negotiation.

Let Stacy Magid help you buy your next home.  Call me today and we can get started!!

 

Stacy Magid
REALTOR® 
Licensed in Virginia

Coldwell Banker Elite
703-599-5337 Cell

703-445-9100 X479 Office


mailto:smagid@coldwellbankerelite.com

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If you are looking to buy or sell a home in the Prince William, Fairfax, or Arlington County area contact Stacy at stacy@stacymagid.com or call me at(571) 357-2748. Put my record of great customer service and experience to work for you. 

 

 

Stacy Magid
REALTOR®
USAA MoversAdvantage Preferred Agent

 

Century 21 New Millennium
12581 Milstead Way Suite #400
Woodbridge VA 22192
703-599-5337 (cell)
540-658-2185 (fax)
www.princewilliamhomesales.com
stacy@stacymagid.com
PWAR  Top Producing Team

 

 

Short Sale & Foreclosure Resource Specialist
Licensed in the Commonwealth of Virginia 

 

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Location:
Virginia
Tags:
buying a home
foreclosure
prince william real estate

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Rainmaker
57,406
Paula Smith
Paula Smith Red Rock Real Estate
Red Rock Real Estate St. George
good info.  We have started to see many foreclosures in our market...I have not done any offers on one yet, so I wondered if they budge at all.
November 09, 2007 07:42 PM
Rainmaker
329,110
Sandi Bauman
Chico CA Realtor
Chico Homes Real Estate
One of my bank representatives readily admitted to me yesterday that he had just accepted an offer $50,000 below asking price... not $5000! 
November 09, 2007 11:49 PM
Rainer
27,682
Sandy Bacon
MacDoc Realty
Stacy--in a class I attended a couple of days ago on short sales and foreclosures the attorney who gave the class from one of our local settlement companies told us that they are seeing banks accept offers $100,000 below what is owed.  This is very telling in our market.
November 10, 2007 10:33 AM
Rainmaker
77,096
Stacy Magid
Century 21 New Millennium

Sandy, Wow that is amazing!  Wish more buyers were placing offers on them.  There are some great deals out there.  It's up to us as Realtors to educate them on the process. 

November 10, 2007 10:42 AM
Rainmaker
150,161
Nancy Moeller
Seven Gables Real Estate
I've seen it both ways. We had a bank last week, counter back at asking price acting like an insulted seller. Go figure.
November 10, 2007 11:04 AM
Rainmaker
57,419
Anthony Saunchez
Realtor, San Bernardino
Summit Realty Group
I guess it varies from bank to bank. I would take a look at how long they have been holding the property. The longer the better. Also bid on multiple properties. With time and a forum like this we will find out who really wants to get those properties off the books. 
November 10, 2007 12:27 PM
Rainmaker
77,096
Stacy Magid
Century 21 New Millennium
Nancy had the exact same thing today.  It's pathetic in this market since there are over 1000 other homes to choose from.
November 10, 2007 02:28 PM
Ambassador
526,531
Konnie McCarthy
Associate Broker - VA & MD
Realty Direct, LLC/Realty Direct, Inc.
Hi neighbor....hey Stacy do you think lenders are getting more flexible..?  I have had a rought time negotiating in the past...have not worked a foreclosure in the last couple of months...so didn't know if banks were changing their tun a little..
November 10, 2007 04:38 PM
Rainmaker
77,096
Stacy Magid
Century 21 New Millennium

Konnie,

I believe they are flexible if you submit a reasonable offer.  However if you submit an offer that is extremely low, like $90K on a $400K home  and the comps are consistent with the list price they are going to reject it out right.  At least that was my experience today.

November 10, 2007 05:36 PM
Rainer
3,505
Corinne Shepard
Realtor
Better Homes and Gardens

Good tid bit of information.  Banks will negotiate but it also depends on the REO officer who is holding  the listing, some won't budge.  It never hurts to try, you have to start somewhere.

November 10, 2007 08:00 PM
Rainmaker
470,195
Trey Thurmond
College Station , Texas Homes
BCR Realtors

I have handled 4 foreclosure listings over the last 2 months . The representative were willing to be reasonable, which is not what I witnessed in the last downturn. Back then some banks sat on their inventory until the cows came home and the bank was forced to close by the FDIC. When I say reasonable   that       doesn't  mean give away the bank , it means they want to get it sold.

November 10, 2007 08:10 PM
Rainmaker
1,072,243
Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375
Real Estate Services You can Trust!
Flexit Realty "Flexible Home Selling Solutions"
Hi Stacy, I have found lenders and the mitigation departments to be more flexible when actual information is used, photos, repair costs etc.  Rarely have I found a foreclosed property in move-in condition.  Nice post Stacy.
November 12, 2007 05:54 PM
Rainmaker
77,096
Stacy Magid
Century 21 New Millennium

Gary, I have a foreclosure that is in move-in condition.  We have so many foreclosures in our area that are brand new or close to brand new and are immaculate.  Then of course there are the other ones that are infested with roaches and stuff. 

I am starting to notice that the banks are getting ever more and more flexible as days on market increase. 

November 13, 2007 07:22 AM
Rainmaker
198,592
Nick Good
www.TheGoodHomeTeam.com
The Good Home Team with Keller Williams Realty

It seems like every client I have right now wants to buy a foreclosure... and thats when I know the headaches begin.  I closed on a property a month ago that was one big headache... when I first talk to the listing agent they told me that the bank would not allow my client to roll in his closing cost (turned out to be not true) and I did not know until the house was under contract that the title policy would be my buyers responsibility (a little bit my fault for not going back over the small line a 3rd time to see what it had actually said)... in the end I was able to talk to the listing agent to talk to the bank to allow us to bump the sales price to roll in his closing cost, but it really was like pulling teeth.

 

I think there should be a more uniform contract and requirements for handling foreclosures! 

November 15, 2007 11:03 PM
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Rainmaker
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