low bid on bank owned asking price

[Gary Sweeney]

I am looking to purchase a bank owned property here in NJ. It's ARV is $325-340k, the bank was asking $234,000 originally and is now $199,990 (reduced 35k after septic failed). it needs 120-140k in necessary renovations including the septic (cant get CO without the repairs). Following the %70-75 rule I should offer anywhere from $86-115K. I am planning to use a Fannie Mae Homestyle loan with %20 down. The home has been on the market for 80 days. I am going through a divorce and this will be my primary residence. So my questions are: How do I prove what it needs in repairs to be habitable and the cost involved to back up my low offer and when do I do this? Would I qualify for a first time home buyers grant after my divorce and my name taken off the current mortgage? We didn't get that when we bought our home together and I've never owned a home prior. Also, what has been others' success rate with offers similar to this scenario? Thanks in advance. I forgot to also mention it's ranch w/ 1440 sq/ft living space on 4.5 acres.

[Russell Brazil]

The bank doesnt care about justification of the offer price. It has zero to.do with their calculations, so I wouldn't bother trying to justify. Just make your offer. Wait for the next price reduction, then make your offer again. Rtc.