[Shara]

...price? Foreclosures specifically? My husband and I are looking at a bank owned home. Just put a bid on it tonight, but we heard that several bids were put in. It was much better than what the other houses are that we looked at in that price range. We're using a VA loan though, so that's a negative I guess if one of those other bidders have cash.The bank was asking 55,000 and we bid 56,600. Is it common for foreclosed homes to go over the asking price? Or maybe we have a chance?I'm trying not to get my hopes up, because if something looks too good to be true, then it probably is. All we know is that there are other bidders. What are the chances that they bid under the asking price? This is our first time buying a home, and we didn't even intend to look at a foreclosure because we heard that they're harder to get into, but didn't know it was until we got there. I guess I am kind of hoping to get some idea of what to expect.Thanks!

[olga]

when we were buying bank owned homes we would always bid under the asking price. Here the problems we would run into1. other people got the home because the Realtor did not like our mortgage people2. we could not get the home, because the roof would not qualify for a loan ( we bid 50.000 and once our loan fell through some people bought it for 35000 cash )3. they will always tell you that there are more than just you bidding on a home4. if you will not get this home, try to get a different one.5. consider the amount of money you will have to spend on the repairs as most of the bank owned homes are sold "as is".

[Realtor Man]

Congratulation on making the decision to buy your very first home. I know this is a very anxious time for you.In reply to your question is it common to see the bid price go over the asking price? I would have to say a good rule of thumb is anytime there are multiple bidders the price is going to go up. Often times the bank or the foreclosure entity will have the price on the as much as 5% to 12% off market price anyway so its not unheard of for a bid to go over asking price. What you must look at when making an offer on a house is what it is worth to you? What kind of work will it need? Will it even pass inspection for the loan? If you feel comfortable with the amount of repairs needed and you know that it will pass inspection for the loan (the reason I bring this one up is because this is the #1 reason most people can't buy foreclosures with an FHA or VA loan) than as long as you are planning on being in the area for a while than don't be scared to bid a little hire on a house then you might have if there where no other bidders at all. Besides in most cases you will be bidding against investors and unless the house is saverly under priced or needs a lot of updating to bring it to its true potential so that it might be worth at least 30% more than asking price they will be trying to by it for a lot less. I hope this is helpful. I know this can be stressful, be as I tell all of my first time buyers this is to be fum so enjoy yourselves if this house doesn't work out there will be another one.