Why are banks not selling foreclosed homes?

Banks don’t want to hang onto foreclosures, the Real Estate Search Direct website states, because those properties drain money away. As long as a bank owns the property, it has to pay property taxes and insurance, and maintain a cash reserve for any emergencies.

Do banks take less than asking price on foreclosures?

Many banks won’t even consider lowball offers, and many bank-owned properties actually sell for above the asking price. Before a bank will take a lowball offer, they will almost always reduce the list price first, and see if that attracts a higher offer than the lowball one they have in hand.

Who gets the profit from a foreclosure?

Generally, the foreclosed borrower is entitled to the extra money; but, if any junior liens were on the home, like a second mortgage or HELOC, or if a creditor recorded a judgment lien against the property, those parties get the first crack at the funds.

Do banks really want to foreclose?

Foreclosure is not the bank’s first choice, they don’t want your home, and there are actually reasons that they want to help you keep it. While you took out a loan so you could buy a house for yourself and your family, your lender gave you a mortgage loan to make money for themselves and their shareholders.

Can you negotiate with the bank on a foreclosure?

Banks are willing to negotiate foreclosures because they are losing money on the property when it sits vacant. Banks can negotiate directly with buyers without the assistance of a real estate agent. Because they own the property, banks can set the price for any value they deem acceptable.

Can you offer lower on a foreclosure?

If there are no offers on the REO home, you can probably offer less than list price and get your offer accepted. However, if there are more than two offers, you will most likely need to offer above the asking price.

Can you negotiate with a bank on a foreclosure?

What are the downsides to buying a foreclosed home?

The Cons of Buying Foreclosed Property The amazing price you may be paying for your property might not actually reflect the price you’ll be paying when all is said and done. Foreclosed properties are often in poor condition and may require extensive and expensive renovations.