In speaking with my friend who is a real estate broker he believes the house is worth 75k with around 6k in repairs, 1400sqft.If I understand the 70% rule the deal lays out like this:75k X .70 =52,500- repairs 6,000= Mao 46,500.I've offered 40 k and the owner didn't budge .

They do the rehab and make nothing or a few k and experienced rehabbers won't buy at those margins.Instead the experienced flippers focus on the 230k to 280k purchase in that market and sell for 330k to 400k getting away from the new "funny money" investors who do not know what they are doing.

Good point, @Rob K !

Some are sold in large packages to investors, but in my REO experience, they want to make sure they are getting BPO value for it.The deficiency bid at auction dosnt tell the whole story, unfortunately.

@Arjun K.

There is no point in researching title until a bid is submitted by the lender which is a deficiency and is at a price point that interests you.

K,It show Ditech in 2006.Joe Gore

She is in preforeclosure and the home is worth at a minimum 130 K.

@K Marie Poe - I should have mentioned that this particular buyer and the investor who referred him to us do deals all the time together.

We owe $240 k and its worth around $390k. we are at 5% interest on this one.We also have a line of credit that has a balance of $160k at 5%, payment of around $700/mo.So, my question is what to do now?