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I have just seen another house that may work for me (maybe)! It has just been listed for $30k. It is in a great neighborhood, very nice homes. From the pictures it could use a new kitchen but I drove by and the roof looks almost new, it's relatively new (1989). Other houses in the neighborhood are selling for $80-100k.
The issue I have though, is the price is so low, I don't know if I can mortgage it. It states that all financed offers must be approved with the bank that owns it. So I am thinking it is possible? It also says no offers will be considered for 6 days, there is no sign on the house yet even.
I know in the past I was looking at a house that was $24k, and my Credit Union told me I didn't have enough credit history, so I am guessing they would have financed it if I did have? I know I have enough history now as I was approved for a mortgage for more $ about a year ago.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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If it's a nice as you say, chances are there will be many offers, driving it up well over that amount and closer to the $80k average, and probably some will be cash. It's hard to imagine a mortgage that small, with average home here at over $400k, and with our first house in 1978 being $50k, but if $80-100k is normal, even $30k is not so low that a bank would pass up giving a loan on it to a qualified buyer. I would just expect the competition to be your problem.
Yes, if it's owned by a bank--and it's such a great deal--don't count on $30K being the final sales price. Nonetheless, depending on your area, bank-owned houses may still be selling for less than market value. The deals just don't seem to be as prevalent, or as good, as they were about 3 years ago.
You would have to shop the market a little. This is called a "junior" or "baby" loan. Many lenders do not do them. Those that do usually charge a premium on the interest rate.
My original loan was for $108k in 2003, which was over the limit for Wells Fargo to be a baby loan. My refinance was just $85k last year, which was not a junior loan at the credit union I refid with, but would have been at Wells Fargo.
I agree with others who say the final price the house goes for will likely be significantly higher than listed price. But even if it ends up at $80k, that is still a junior loan at many banks. If it did go for under $50k, many national banks wouldn't do the loan at all. You'd have better luck with local banks or credit unions, especially if home prices in your area are that cheap in general.
If it's a nice as you say, chances are there will be many offers, driving it up well over that amount and closer to the $80k average, and probably some will be cash. It's hard to imagine a mortgage that small, with average home here at over $400k, and with our first house in 1978 being $50k, but if $80-100k is normal, even $30k is not so low that a bank would pass up giving a loan on it to a qualified buyer. I would just expect the competition to be your problem.
Unless we know where the OP is it is hard to say......" there will be many offers"
Many houses by me are listed really cheap but even flippers are reluctant because they need more work than the final selling price has justified.
The OP hasn't even stepped inside that house yet and is going strictly off pictures.
(and already he noticed the house needs a new kitchen just off the pictures )
Never mind. I checked mls today and it's already under contract apparently. It was just listed Friday evening and the description said no offers would be considered for 6 days. Weird.
Someone could have came in with an assessed value offer. We do this often on a property we are really interested in, we make a all cash As-Is assessed value short close offer from the start. The bank now has a valid As-Is offer for cash based on the assessed value and they don't have to do anything beyond just saying yes. Sure it may fetch more at auction or it may not. They have no idea what will be at auction but with us, its all out in the open and they usually will say yes or no immediately. Of course, it goes without saying that we know more about the property than the average auction attendee before we even make that offer. So, when it comes available, we are ready to act right away.
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