Upcoming Foreclosures - How much should my offer to the bank be for on a potential pre-foreclosure short sale?

How much should my offer to the bank be for on a potential pre-foreclosure short sale?

I am working with a customer that has $161k mortgage that is about to go into foreclosure. However after getting a couple of Broker Priced Opinions on the property it only appraises at $129k because of several other foreclosures in the neighborhood. What would be a reasonable short sale offer to the bank given these circumstances. I would usually offer no more than 75% of BPO - repairs, but I want to know what have others experienced that have been in this same type of situation where the BPO is much less than what is mortgaged and what was the bank willing to work with you on a short sale...

Public Comments

Don't count on it. The bank is already going to take a shot in the backside to the tune of about $30K. Banks will certainly work with you on short sales, but they're not going to sell the property for 75% of actual current value unless they have no other choice.
I would agree with the first poster on a higher valued property, but with a property like this one and when you consider the fixed costs of trustee sale and foreclosure proceedings, you probably can offer them something around the percentage you've stated. With what the future 36 months might hold for lending institutions I'm guessing that any cash coming back in to the institution would be looked at favorably.
I would say you should go with your plan of offering 75% of the BPO less repairs. If they don't like that number, you can always increase it if you think it would still be a good investment. More and more of these properties are coming along, so banks are really not wanting to hold property unless they absolutely have to. I worked for an inspection company whose clients are banks and/or their asset management companies, and they end up losing alot on these homes that they take in a foreclosure. I've seen instances where they have had to demolish properties and have lost everything, plus had a huge out of pocket expense too in addition to the mortgage loss. Good luck!
Hi, I used "Credit Solution" to settle my debt and avoid foreclosure.They managed to reduce my debt up to 58% .It's legitimate.I came across this company on NBC News Special Edition.Check it out here: http://nanoref.com/linksynerg/DB0yjA