Why Wouldn't A Bank Negotiate Over A Foreclosure?

I found a nice simple home that will require little %26quot;fix up%26quot;.

The home has been owned by a bank for over a year after a foreclosure.

I have preapproved by them but they will not budge on their terms.

For example I counter-offered their price. I was told the terms were non negotiable.

I tried to talk down all the ridiculous fees they want upfront like points, etc. They did offer to roll the approximately $5,000 of these charges into the 7.45% loan. Gee Thanks!

I pay less interest on my car! Why is this bank being so stubborn, when you would think they would bend over backwards to get rid of the property?

Why Wouldn't A Bank Negotiate Over A Foreclosure?

If it is a foreclosure then they have a certain amount tied up in the property. If they take less than that then they will lose more money then they have probably already lost on the house. As to why they won't budge on the terms, they probably are using that to gauge how serious the buyer is. In their minds, If somone can't meet the up front costs then that would likely mean they'll be left holding the bag on another foreclosure for this house. I hope you get it.

PS..... Paying the points up front will buy you a better interest rate so it might be worth it.

Why Wouldn't A Bank Negotiate Over A Foreclosure?

Well, you don't need to get the financing from that bank! My guess is, you've got less than stellar credit (7.45% rate indicates that), and they don't want to foreclose a second time on that house.

They must think they can sell this without much difficulty.

Why Wouldn't A Bank Negotiate Over A Foreclosure?

The bank is playing this game because the manager and the loan officer in their department doesn't want to have to report a loss on their shift . They will lose much more by not selling the house at reasonable market value but its no skin of their nose.

We have a bank foreclosure in our neighborhood that has been on the market for about a year . The owner put zero down and made no payments, so the bank has the house priced at $580,000 instead of the market value $470,000 to cover their costs.

Why Wouldn't A Bank Negotiate Over A Foreclosure?

Take the highest rate possible with the lowest fees. Then refi afterward.

Or find another house and screw these guys.

Why Wouldn't A Bank Negotiate Over A Foreclosure?

Something is not right in the negotiations or the terms you are offering. Maybe you are low balling them?

Regards