Relationship Selling

Jumpin out da window with this 1 says:

Are you buying a home already owned by the bank? If you are, then the loan balance (the balance on the loan already extinguished through the foreclosure) is pretty much irrelevant. At this point, the bank can really only get what the market will bear for the house. In fact, it’s really a business decision for the bank. They, like any investor who owns property, may even decide to make repairs to enhance market value. However, the market will dictate the price; and the extinguished loan amount has nothing to do with the bank’s thinking 99% of the time.

If you are buying a house that is in foreclosure then the outstanding loan amount will be key. In this short sale scenario, I’m not sure what banks generally consider a good loss. In other words, what percentage of the mortgage they are willing to write off, if any, of the total. I would have to assume that a number of secondary market factors (who owns the loan, how is the loan owned, etc..) would be in play as well as a number of other considerations.

I’d recommend, in this scenario, a realtor specializing in short sales.

I’d also recommend that you (with permission of the mortgagor), or your realtor (with permission of the mortgagor), or the current owner/mortgagor speak directly to the loss mitigation department at the bank with the loan that is in trouble. Ask them the same question.
References :

acermill says:

There is no such relationship. The lender selling the property is looking to get a sale price as close to market value as possible. What was owed on the property is irrelevant.
References :