Buying a foreclosed home with Citifinancial as the owner.?

Question

I have placed a bid on a foreclosed home just recently. I am just wondering if anyone out there can shed any light on what Citifinancial is thinking. I found a home that was listed for 139K. It foreclosed on in Nov. of 2007. Citifinancial bought the property for 107K. I have offered them 109,200 in cash for the house. They rejected the offer so I offered 110,300. They once again rejected the offer. Today I have jsut placed another bid for 115K. Why are they not accepting this offer? I am paying cash for the house. Can anyone shed some light on how these mtg. companies work. I live in Michigan and we are one of the highest states of foreclosures. I just thought they would want to get off the house. If anyone can give me some advice it would be greatly appreciated.

Answer 1

They want to make some type of profit..iuf they paid 107k ,they at least want to make 20k-30k profit on that home...

Answer 2

Is it back on the market?  Have they countered?  Have you presented the offer to their listing broker?  Some banks are withholding inventory to keep prices up and they may not have this home on the market.

Answer 3

The price Citi “paid” was their starting bid at auction. When no one bid at the courthouse auction, Citi effectively bought the house at that price. It’s less than they need to get on the house, and at this point, they’re not willing to go as low as you’re offering.

You should epect to pay pretty close to list.

Answer 4

They are rejecting your offer because your offer is below their minimum, a number that you will never know.  It makes no difference to them if you are paying cash or borrowing from a bank as they will get cash either way.  Have you tried to contact a Citi representative to discuss the house and your offer?

Answer 5

they want to make a profit as well as get the house out of their inventory.  big companies usually have a large profit margin to begin with and its why they can turn around and lend hundreds of thousands of dollars to customers all over the country, so when one goes into foreclosure, it doesnt usually matter to them if you pay cash or get a mortgage with another bank because either way they get their money.  so keep offering until they accept your offer or move on to a cheaper house if you cant come close to the listing price or afford the listing price of 139K.  they probably arent going to budge a whole lot, maybe 5-10K at the most! good luck!