How much can you negotiate with the bank on a property that will be soon a foreclosure?

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So when looking at purchasing a foreclosure you need to not only look at the property's current condition, value, and resale value; you also need to consider how much property the bank has, how long have they held it, and how many more properties are in danger of beccoming a shortsale or REO foreclosure canidate. These numbers will be almost impossible for you to get.

My best advice is to determine WHY the local market in your area has gone done, when and IF the market will return to prior levels and then after taking the property condition into account; bid a price that will make you money on the day you BUY and not hope for a profit in the future.

I just closed on a foreclosure here in Las Vegas last Monday. The house sold Feb 2006 for 300K, the bank foreclosed for 255K and I offered them 152K. they countered with 169,900.00 and I accepted that. So here is a case that the bank PAID 255K for the house at foreclosure, amount owed on loan. And they received 155K at closing on the sale to me.

I am in the process of putting 5K into the house for paint, landscaping, and a few small repairs. After we finish we will rent the house for $1400 a month and then get a new loan(paid cash at closing) on the house for 70% of the new appraisel. House should appraise for 250K so I should have almost ZERO money of mine in the deal, breakeven cashflow and hold the property for 4 or 5 years until we are back at a 300K valuation. I KNOW the Las Vegas market will go back to that level because we still have lots of commercial construction going on, 5,000 people a month are still moving here, and gambling is not going away anytime soon. This market was a very high % of "investors" chasing rapid growth and had high % of subprime loans that now can't be paid for with current rental rates. We are also number 1 in the nation for foreclosures. NOW is a GREAT time to be a REAL investor as opposed to all the "flip" experts who chased the market.

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How much can you negotiate with the bank on a property that will be soon a foreclosure?

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