$140,000 cash or $170,000 offer. which would be accepted in a foreclosure??? (contingency, agent) - Foreclosures, Short Sales, and REOs - - City-Data Forum

GiantRutgersfan · 07-22-2009, 06:02 PM

The house is in NJ, in an area with higher priced homes. its a fixer upper.

It was $182,000, but literally just dropped in price to $170,000

There is an $140,000 cash offer from someone else, or a $170,000 offer.

which would the bank accept? It is bank of america who owns the home.

clevedark · 07-22-2009, 06:04 PM

I think I read somewhere that banks want the most money they can get. But I'm no expert.

middle-aged mom · 07-22-2009, 06:08 PM

Quote:

Originally Posted by clevedark

I think I read somewhere that banks want the most money they can get. But I'm no expert.

This might be the best post of the year.

All sellers want the most money they can get.

GiantRutgersfan · 07-22-2009, 06:13 PM

Quote:

Originally Posted by clevedark

I think I read somewhere that banks want the most money they can get. But I'm no expert.

the most cash, or the most $$$ in the long term is the question though

Silverfall · 07-22-2009, 06:14 PM

I have done several cash REO deals this year for investors and every time the bank took less money and my cash buyer.

clevedark · 07-22-2009, 06:22 PM

See? That's why I said I wasn't an expert! I wasn't trying to be a smarty.

tryin2buy · 07-22-2009, 06:54 PM

It has been my experience that the conditions of the offer (cash, quick close, as is no inspections) all are considered when weighing offers by the bank. HOWEVER....if there is a significant difference in the amount of the offers, the higher offer wins! Obviously......I had the better conditions, but the lower offer and thus I am still tryin2buy! Wish I had that one back for a do over!

Bill Keegan · 07-22-2009, 08:17 PM

Quote:

Originally Posted by GiantRutgersfan

the most cash, or the most $$$ in the long term is the question though

The bank to which you make your offer isn't getting their money "in the long term" unless they are also making the mortgage loan for you to buy the house. If you are getting your mortgage money from another bank, they get all that money on the day you close. So they are going to be concerned with the likelihood of you getting the mortgage to buy the house. The greater the likelihood of your mortgage being approved, the more like cash it is to them, and the less of a discount they will give to someone offering a truly all cash contract.

missycaulk · 07-28-2009, 06:02 AM

We had a offer turned down for 20K over asking price, we asked for one inspection the well and septic. The bank took an offer of 20 LESS than asking price, with no inspections.

so the bank lost a net of 40K not to have to deal with inspections.

Banks don't care,they want it done quickly in most cases.

DMenscha · 07-28-2009, 09:38 AM

Quote:

Originally Posted by missycaulk

Banks don't care,they want it done quickly in most cases.

Banks and asset managers are just about as individual as, well...... individuals.

Some are "close yesterday" hungry, some are "show me the highest number" hungry, and some are "cash and no contingency" hungry. I think a lot of what goes on, is based on the contract they have with asset managing companies, and the individual asset manager's call on the property. The relationship between the asset manager and listing agent also works it's way into the equation.

I've had experiences all over the board with REO property, and none of them (even with the same lender) worked out the way I expected.