Can you make a lower offer on a home that is listed as a preforeclosure? My realtor is telling me that I can't

Question

San Antonio, TX area...

The listing goes to a foreclosure as of Aug. 1

Answer 1

That is because your realtor is an idiot.

Yes you can make a lowball offer on ANY house. He is just trying to make sure that a sale goes through and he gets paid.

A challenge of a house going through foreclosure is that the seller may not be able to authorize a low ball offer if the amount is less than what is owed on the property and the seller can't make up the difference.

In this instance, you will have to do a "Short Sale" on the house. This is when you get authorization from the lender to allow the sale of a property to go through for less than what is owed on the property. If this realtor doesn't know how to do this, then find another realtor to represent you that does know how to do a Short Sale.

P.s. there are other ways to buy a house - especially ones in which the seller is motivated to sell quickly. Contact a local title company or Real Estate Law Firm and ask them about buying a house "Subject to" existing financing, or doing a "wraparound mortgage".

Just imagine buying this home without having to use your own credit, and only needing enough down payment to get the current loan (which is behind on payments) back into good standing. This is one way I have bought more than a few homes here in San Antonio.

Answer 2

Is it listed for sale?  If not then don't see how you can make an offer on it.  If it is for sale, I don't see why not.  Maybe it cuts your realtor out of some $ if you do.

Call a different realtor office and just ask them.  Someone should be able to validate it for you.

Answer 3

Your Realtor is under a ethical duty to present all others that are official and in writing no matter how low it maybe

Now is it a waste of time? maybe but that is part of being a Realtor and they must submit the offer

Answer 4

You can ALWAYS make a lower offer, but you risk the offer not being accepted.

Your broker is thinking about their fee (a lower sales price lowers their fee).

Answer 5

sure you can, the bank may even take it.  It's called a short sale.

Answer 6

yes you can you can submit an offer for what ever price you would like. even if the offer you send is lower then what they owe on the note, that is called a short sale.

Answer 7

we just bought a forclosed home and we could bid lower then what the bank / mortage company was asking for.. umm im not sure on a preforecloser home... You could contact another realitor and see what they have to say

good luck