Repo house

krushing · 07-15-2012, 10:02 PM

Anyone know how a repo sale works? There is a house in our neighborhood that was repo'ed. The bank is asking 190k. Several folks have put offers in on it at or above that number. Does it go to the highest bidder or the first to meet the minimum offer?

saintsfan84 · 07-16-2012, 03:05 PM

It depends, I think.

I put an offer in on a repo not long ago, I offered over the asking price, but asked for closing. I didn't get the house. It came back on the market, I put an even higher offer in over the asking price (again asking for closing), still didnt get the offer.

I may have missed because I was asking for closing, not entirely sure.

I'd think the person with the most amount of cash to put down would be the one to get it. The bank is going to want to get as much as they can as quickly as they can.

BIG E · 07-16-2012, 03:11 PM

I think it has more to do with who has the cash and close quickly.

FWtex · 07-16-2012, 04:40 PM

Quote:

Originally Posted by krushing

Anyone know how a repo sale works? There is a house in our neighborhood that was repo'ed. The bank is asking 190k. Several folks have put offers in on it at or above that number. Does it go to the highest bidder or the first to meet the minimum offer?

Cash is king unless it is a lowball offer or there is a financed offer within the appraisal range, it is considerably higher than the cash offer, their is a large down payment, and the buyers can close quick.

efil4stnias · 07-16-2012, 06:47 PM

Is it bank owned or Fannie Mae? If the latter, I can tell you all about it.

krushing · 07-16-2012, 07:06 PM

Quote:

Originally Posted by efil4stnias

Is it bank owned or Fannie Mae? If the latter, I can tell you all about it.

I think it's owned by one of the monster mortgage companies. It's listed by century 21. Several folks claim to have offered the asking price or more.
It's in a subdivision that I developed and still have a lot of interest in. I'd hate to see the sell effect values in the neighborhood. I know it has a messed up septic system. And way partially trashed when the folks left.

efil4stnias · 07-16-2012, 07:40 PM

Quote:

Originally Posted by krushing

I think it's owned by one of the monster mortgage companies. It's listed by century 21. Several folks claim to have offered the asking price or more.
It's in a subdivision that I developed and still have a lot of interest in. I'd hate to see the sell effect values in the neighborhood. I know it has a messed up septic system. And way partially trashed when the folks left.

Well if bank owned then I'm not sure.

The home next to me was bought from BOA by Fannie Mae. Had foundation issue ( but engineer and shoring contractor both said its was from settling not sinking ) anyway the home was built in 2005 and sold for 232,000. Neighbor bought ( out bid me by 5000 ) for 125,000. But it was tough. Fannie Mae wanted 50% of purchase price in liquid assets ( we kept wondering why we would see contract then back on market) cannot sell for 3 months. So he had to liquidate some assets to get to the 50% but fixed the home and will list for 220,000 or 205,00 if buyer wants shoring work done.

Gets to kinda determine buyer and keep "rental/lease" from subdivision. Still will mess with the comps in area but it sure beats an out of town investor who is looking to do minimal work and unload to highest bidder.

krushing · 07-16-2012, 08:33 PM

Quote:

Originally Posted by efil4stnias

Well if bank owned then I'm not sure.

The home next to me was bought from BOA by Fannie Mae. Had foundation issue ( but engineer and shoring contractor both said its was from settling not sinking ) anyway the home was built in 2005 and sold for 232,000. Neighbor bought ( out bid me by 5000 ) for 125,000. But it was tough. Fannie Mae wanted 50% of purchase price in liquid assets ( we kept wondering why we would see contract then back on market) cannot sell for 3 months. So he had to liquidate some assets to get to the 50% but fixed the home and will list for 220,000 or 205,00 if buyer wants shoring work done.

Gets to kinda determine buyer and keep "rental/lease" from subdivision. Still will mess with the comps in area but it sure beats an out of town investor who is looking to do minimal work and unload to highest bidder.

Thanks great info. The folks bidding on this house think they can get conventional financing. It should be interesting. I found out the house appraised for 320 but is listed at 190. I heard the amount owed was 275.