Can i offer less on a foreclosure

If you are experiencing a financial hardship due to COVID, you may be able to suspend payments for up to 12 months with no late fees or credit impact. Before initiating a foreclosure proceeding, your loan servicer must send you a notice that the loan is in default and give you a chance to get caught up and avoid foreclosure.

For a judicial foreclosure, your lender will file a foreclosure lawsuit. If you do respond, the case could go to trial or the judge could file a motion of summary judgment. Skip to content Home » Helpful tips » Can you offer less on a foreclosure? When a bank-owned home comes on the market as a foreclosure home, it can attract many buyers if it's priced attractively.

Underpricing is one way a bank can get multiple offers for a foreclosure home. The problem that can arise is sometimes agents don't do a very good job explaining to potential buyers why underpricing occurs and how to make underpricing work for the buyer's benefit. If the home is priced too low, many buyers will probably make offers over the asking price.

In a foreclosure, as in any home sale, the asking price is simply the starting place for negotiations. The following is an example of how the process of buyer's offerings may work.

This should help you understand the process behind each offer and price. You will also see how each offer might rank, depending on the order in which they are received. And so it goes, the bank receives seven or more offers; these offers can be all over the board—some low, some high, and some incomplete.

In the right market conditions, it might seem as though everybody and their uncle are throwing offers at the bank. If a bank receives several high offers, why would it ultimately accept a lower one? There are a few reasons this might occur. A lot can happen during an inspection period and offer negotiations. The terms a bank agrees to in advance can change. A tree can fall on the house or market conditions could suddenly worsen. Not to mention, interest rates could go up, putting downward pressure on prices.

Sometimes the home could require extensive work, which was revealed during a home inspection. In these situations, buyers can ask the bank to lower the price to reflect a newly discovered condition. Also, in some cases, the listing agent represents the buyer making a lower offer and purposely—although it is generally against the law in most states—pushes their own buyer's offer to the top of the pile while downplaying the other offers.

Not every real estate agent is an ethical agent. Any advice? Lock We hate spam just as much as you. If you signed up for BiggerPockets via Facebook, you can log in with just one click!

Log in with Facebook. Full Name Use your real name. Password Use at least 8 characters. Using a phrase of random words like: paper Dog team blue is secure and easy to remember.

All All. Menu Menu. Recommended Vendors. Real Estate Books. Featured Book. Get the Magazine. Search Nova. Log In Sign up. Create post. Rotate Log in or sign up to reply. Around here one important factor is how long a property sits. Kal, Are you planning on keeping the home for yourself or are you going to resell it? Kel - if this guy's a builder he may be hurting business-wise.

As an investor he'll understand that. Mark, All I can see on our county records is that he bought it back in I felt like saying Good luck with that LOL! The real question might be: Why does he have 11 vacancies? Your area may be in trouble. Not my problem. There are other deals. I'd appreciate some insight on this. Free eBook from BiggerPockets! Download the eBook Now. Log in Sign up. Log in Email Password Forgot password?

Name required. Why create an account? Find investor-friendly agents, financing options, and more. Plus, get FREE access to articles, webinars, guides, and more.