[Natasha J]

how do you know what to offer on a foreclosure home?

[877YouKeep]

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first get some solid comps, preferably homes that have sold in the last 6 months (3 is a good number and you can go out a few miles) that are very similar size, bed and bath, age and neighborhood. Then walk the property and look for every little defect and take notes. Once you complete your walk through determine the amount of money you are going to spend to get it to a decent condition. Subtract the repairs from the comps and that will give you a good value. Take the value and depending on what state, city ... you formulate an offer. Generically speaking you take the value and multiply times .60 and that will give you a starting point to negotiate with the lien holder. Many times the lender will counter offer the BPO price and you then counter at about .65 to .70 the counter offer. If you are in a metropolitan area there is a better chance to get even bigger discount. On a second lien you offer about 10% of the payoff.
remember you are negotiating for the homeowner so be sure To view links in this forum your post count must be 10 or greater. Your post count is 0 momentarily. and negotiate the 1099, if they do not bite report the information to the homeowner.
You will not get a negotiator upset with a low ball offer unless you just get stupid with your offer and many times you will not get a response.
Always put yourself in a position to meet the BPO (Brokers Price Opinion) and point out defects and there are a few other things...

[Corey1023]

I agree with everything Don said, except for one point. 2nd lien holders are my specialty. I would only offer them 10% if they actually have an equity position. Most 1st lien holders will not allow them more than 500-1000 dollars, so I would start there. If they have no equity you basically want to build a relationship of trust where they feel like you are doing everything you can get get them as much as possible and then illustrate that its the 1st lien holder and their guidelines tying your hands, not you trying to low ball them.

[877YouKeep]

Yes, Cory I think I am slipping on the To view links in this forum your post count must be 10 or greater. Your post count is 0 momentarily., haven't done one since I started 877YouKeep a few years ago, but I have save many homes and feel good about our continual growth. Just picked up 2 new negotiators one from To view links in this forum your post count must be 10 or greater. Your post count is 0 momentarily. and the other from To view links in this forum your post count must be 10 or greater. Your post count is 0 momentarily.. These guys unlike WAMU did both liquidation (short sales) and retention (workouts). I do not mean to confuse anyone reading this post but a negotiator at To view links in this forum your post count must be 10 or greater. Your post count is 0 momentarily. will specialize in one or the other and not work both cases. These new guys know their stuff and have taken on much of my work which is freeing me up to start building websites. If you are looking for a website that is guaranteed page one position and not 877YouKeep you may want to look at our enhanced business plan.