Real Estate and Home Mortgages - bank owned..... will the bank pay closing cost or down payment???

I'm looking at making an offer on a bank owned home.

I was considering asking the bank to pay closing cost or 3% down payment.

I am just curious as to whether this is unheard of or something I shouldn't ask at all.

I haven't contacted our realtor as the home hasn't been officially put on the market and the listing realtor doesn't have a price (appraisal completed today). She won't know a price until Monday or later in the week.

To be honest, I am considering NOT using a realtor ONLY if we can get the listing realtor to agree to kick us back 2%. If she won't then I'll gladly call up the realtor I use. I understand the risk but I feel confident in not using one. I will have our attorney review docs prior to closing and so fourth.

Just looking for some input.

Thanks

For the record. We have the down payment and closing cost. I'm just looking for that REALLY good bargin. I think they are going to list the home between $60K-$80k. We really don't want to spend more than $60K but would love to get the home for $50K or below.

Absolutely! Never hurts to ask for credit for closing costs. Not sure about the down payment. Most Lenders will not allow them to help with your down payment so find out specifics first.

I've seen most loans with accepted offers where the bank will credit $$$.

Be careful on their specifics on the contract. Lots have a per diem.

A bank is little different than a homeowner.. when the house is first listed, they expect full price - as it sits, they get nervous and take a half decent offer: For Example... I purchased a repo last year that was listed at $180K - on the market for 2 months... I offered $170K and was turned down..... I waited 30 days and made an offer of $160K - which was accepted within minutes of the fax to the bank.

Thanks for the advice!

I looked at the home today and was not impressed. IMO it is way over priced. Well, at least 30K more than I really want to pay.

The realtor told me upfront the broker at the bank is an a$$ and he won't take anything less than the asking price.

I won't waste my time even making an offer on it right now. It just went on the market today and I was the 3rd person to look at it today. I will be surprised if ANYONE makes an offer over $50k. The bank is asking $66,900.

The basement is very wet and the home needs a lot of work. There are some major cracks in the basement walls. I can't see an investor even offering more than $25k on this house. Its full of mold and unbelievably dirty. Needs all new carpet and paint. Needs windows, appliances, flooring, toilets, sinks.......

I am still shocked at the asking price.

Thanks again.......... I'm gonna let this one sit for a while and just see what happens. I don't want this major construction job that bad.

I think they are going to list the home between $60K-$80k.

I'll buy it today, no matter how much work it needs! (The house we're looking at is 5 times more expensive!!):eek:

You must be in California FirstTymeHomebuyer... :D ?

I'll take it too.

Actually, New Jersey...:wall:

This house is in a small town and not in the big citty of Indy. lol

Indy home prices are very affordable. I did buy a nice bungalow for $65K in a decent area of Indy almost 4 yrs ago. Very well built and well kept. Outdated like the home we looked at yesterday but no where near the poor condition.

I know the two homes sit in different areas but the home prices for sq ft are pretty comparable. Thats why I belive this home is WAY over priced.

I can't buy a garage for that kind of money.... I'm currently looking at a serious fixer upper down the street (I mean "serious") that is offered for $250K.......

That being said: be patient - if it was meant to be then it will happen... the longer it sits on the market, the banker will be more apt to bargain. He's sitting on a lot of repo'd property right now - and will eventually look to cut his losses any way he can. If this particular one doesn't work out - the next one might!!

The willingness to walk away from a home purchase is the buyer's strongest asset. He looks elsewhere - while the seller continues to pay interest/taxes/etc., on the property.

For strategy - I would make the cheap offer if I wanted the house.... that offer might get turned down, but will sit on the seller's desk - reminding him daily that he needs to dump that piece of property...

The home sold fairly quick (like a month or two). Not sure of the sell price but I have a feeling it was close to the asking price.

We walked from that property and a few others. We decided to hold off a little while longer.

Thanks for the tips.

You can check the sale price of a home from the county records, and most places have them online now.

You couldn't buy an outhouse in my area for 60K. Even in the current dismal market local prices have gone down only about 5%.

There is a 1100 s/f ranch about a mile from where I live. It's a typical 50's build, in rough shape. It went on the market as a "starter home" for $249K.

DIYLiz - count your blessings.

It is pretty amazing how the so called system works. A real Estate Broker is typically who comes up with the list price for the banker it is called a BPO (brokers price opinion) sometimes they are high sometimes they are low. I am still surprised at times by how little some so called real estate professionals know about property that needs work. Some of these guys seem to operate in a glossed over world that has very little wrong or at least if something is glaringly wrong they see it as a quick/easy and cheap fix no problemo. Buyer beware