Can you negotiate the price of a home that is in foreclosure?

Question

There is a house that's for sale that's in foreclosure and it's a bit over what we want to pay, but we like it. Can you negotiate that? Is it easier to negotiate or harder? What is the potential you can go down?

It's a $132,000 home in a good neighborhood and needs some updates.

Answer 1

I'm not sure what ssi means either, that's a first for me.

Yes, a foreclosure is negotiable.  Once you submit an offer expect to wait a week to hear an answer.  While you are waiting for your offer to be accepted or countered, the bank can still show the home and accept another offer if it comes in.

It is easier to negotiate, although it is a slow, frustrating process.  The bank will always counter if you offer is too low.  A typical seller can get offended by a low offer, and not be willing to work with you at all.

I recently sold a foreclosed home that was listed at $134,000, we started negotiating at $118,000; my buyer ended up paying $127,000.  I sold another one listed at $105,000, we started at $75,000; and my buyer got it for $83,000.  I hope this info helps!

Answer 2

YOu haven't told us the pertinent information

. . . . is house well priced for area, condition, market?

. . . .how far in foreclosure process is it

. . . .how much is mortgage amount--is it more than you're offering

. . . the fact that the house needs some updates doesn't mean it isn't worth $132,000--or that it is

. . . in my neighborhood you couldn't get anything but a studio condo for that price, and it would definitely need updating

are you talking of buying from the bank, from the owners, in a short sale?

Answer 3

That depends. If the foreclosure is with a lending institution like a bank where the buyer was unable to make mortgage payments, than yes, you might have a little wiggle room.

However, a Tax Foreclosure is different. If a home is forclosed by the Federal Govt for failure to pay backtaxes, you might get a great deal on the house, but whatever the backtaxes owed are non-negotiable. The positive side is a Govt foreclosed home wipes away all other claims to other lien holders so you can own the home free and clear after taxes are paid. You then become responsible for all future federal, state, property, and school taxes.

Answer 4

If there is a foreclosure sale, the sale will go to the highest bidder.  Homes for sale due to foreclosure are always negotiable as the company who owns the home wants to cut their losses as much as possible but are also willing to take a loss now instead of a bigger loss later due to the way the home mortgage rates and property values are dropping..

Answer 5

Who are you trying to buy from?  The owner being foreclosed on?  Is he/she trying to do a short sale in lieu of foreclosure?