Can You buy your own REO back?
I am currently going through the foreclosure process. I am at the very begining and was wondering if it is possible to let it go to auction and wait until it doesn't sell then offer the bank more like what it is worth. I am currently 75000 upside down and the best the bank is willing to do is give me a 6 month 5.25 intrest rate after that it adjustes back to 14.9%.
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#3 Real Estate Deal Analysis & Advice Contributor
- Rental Property Investor
- Mercer Island, WA
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#3 Real Estate Deal Analysis & Advice Contributor
- Rental Property Investor
- Mercer Island, WA
Will, I'd agree that buying your own short sale is going to run into trouble. But if the property becomes a REO, and you end up buying it after the fact, what grounds would the bank have for either refusing to sell it to you, or coming after you if you did buy it.
If "currently 75000 upside down" means you owe $150K and its worth $75K, buying it back at $75K would make a big difference in payments. If the OP means they owe $500K and its now worth $425K, then I agree it won't make much difference. All that notwithstanding the fact you're not going to get a new mortgage just after going through a foreclosure.