newbie ? -- does the foreclosure amount mean anything to me?

[Jill Curran]

I'm a newbie looking at my first single family, and I have this question. Looking at a foreclosure for sale by the bank (listed with an agent) I can see this on Zillow: "The lender, US BANK TRUST, assumed this property for $114,667 during foreclosure proceedings and now owns it." Should I take this amount into account when coming up with my offer amount? It's been on the market for $147,500 for over four months. Is there a bank formula for a price that they'll accept, or is that wishful thinking? Thank you all for your help!

[Sam Craven]

Your offer should be based on what the property is worth not the underlying mortgage.  A lot of wholesalers run into this issue and try to get an offer accepted before realizing they are over promising on something they cant deliver on.

Run your analysis based on the ARV, Repairs and rental rate and offer what you can pay according to those numbers.

Banks ARE willing to take a loss, so always offer and ALWAYS follow up.  Just dont try to make a deal work that isnt a deal because it wont end well for anyone!