I need expertise... and maybe a loan officer!

[Chris Hamrick]

Hello! I'm 10 minutes new to this forum, and glad I stumbled across it. I am looking at purchasing a home that's foreclosed. The home was sold in March of 2007, and its asking price at the time was 1.5M, it sold for 1.1M but now is foreclosed and the bank is asking 740K for it.

Now here's what I was thinking, let's say the house actually appraised for 1.3M. If I were to finance 80% of the home's value, that would be $1,040,000, and I could walk away with 300K cash at closing.

Would that be possible? I read a thread on here about cash back at closing and it being illegal, and appraisers fudging the appraisal, but in this case the home is actually worth that and possibly could be worth more than 1.3! The bank just wants way under market value for it.

Help please! I've been running and punching numbers, and if I could do this deal legally, I'll be excited. TIA