Buying a foreclosed lot - approaching owner (bank) directly? (Carolina Beach: bank owned, lender)
Raleigh, Durham, Chapel Hill, CaryThe Triangle Area
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I have seen a lot that we like that has been foreclosed. It is now owned by BB&T. It's in a development where there is an existing marketing realtor. I'd like to know if it's possible to approach the bank directly to offer to purchase and if someone knows who/how to specifically approach BB&T?
Sorry found the answer myself. They have a listing of bank owned properties on their web site and found the lot I was interested in. They don't take direct approaches and re-direct you to the realtor
Just curious as to opinions on this... somewhat divergent I know but looking at a couple of lots in this development.
This first one is owned by BB&T and they "bought" for 160k so basically that's how much they were owed. Tax value is $220k and they are trying to sell for a "bargain" $340k. What gives here? I'd have thought bank would be happy to sell for anything above the $160k plus interest they're owed (which I admit could be hefty)
I see in the same development another lot that a builder bought in 05 for $225k, valued at $297k. I see that same builder has just had two other big properties foreclosed. Would an offer of $250k be unreasonable?
If the fair market value of the property is in fact $340K (accepting that for argument's sake), why would the bank or anyone want to sell it for less than that, just because they paid less? They should be "happy" to sell it for what it's worth (and, presumably, a buyer should be "happy" to pay that). Also, do they have any obligation to the former owner for proceeds in excess of the debt that was owed?
CHT - guess that's my point. Under my understanding of typical lender/borrower arrangements the bank is only allowed to keep it's principal, interest and reasonable fees. Anything else goes back to the foreclosed borrower. I understand for sure concept of market value etc but if I'm lender once I've got my PIE (principal, interest and expenses) why do I care about anything else? I think the law would require them to make best efforts though so I guess that's why they get a realtor to market... but presumably they'll listen to the offers. One way to find out I guess....
CHT - guess that's my point. Under my understanding of typical lender/borrower arrangements the bank is only allowed to keep it's principal, interest and reasonable fees. Anything else goes back to the foreclosed borrower. I understand for sure concept of market value etc but if I'm lender once I've got my PIE (principal, interest and expenses) why do I care about anything else? I think the law would require them to make best efforts though so I guess that's why they get a realtor to market... but presumably they'll listen to the offers. One way to find out I guess....
I think you're right ... they have some duty to attempt to maximize the proceeds. Just guessing, but seems reasonable.
I found an example at the other end of the spectrum. BB&T has a lot at Carolina Beach on the market for 150k. They "bought" it back from the owner for 320k.
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