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The Million Dollar Question
Related article: 3 Things to know about foreclosure homes for sale and Deal or no Deal
What is a Colorado Springs foreclosures?
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First – Let’s define the word, Foreclosure. When buyers talk about foreclosure, what they mean is a bank-owned property that had been acquired through the foreclosure process.
What happens once the bank gets the property?
After the bank repossesses the property (typically at the Public Trustee Sale at the County courthouse), it is assigned to an Asset 
Manager and goes through several internal procedures before it is available for sale in the marketplace. One of the processes includes a market evaluation of the property which may include a full blown appraisal to tell the bank how much the property is worth. In some cases, the bank may order a BPO (Broker Price Opinion) from a real estate broker vs. a full-blown appraisal. Some banks order both appraisals and BPOs, or they may order multiple BPO’s. They may take the average price from the BPO’s or a combination of the appraisal and the BPO. The most important thing to remember, every lender seems to have a different process on how they price properties for sale. There is no set rule.
When a market value is established and procedures are completed, the property comes on the market available for sale to home buyers. This process may take 2 weeks, or months, months, and more months.
9638 Baltusrol – Foreclosure Date: 8/14/09
7872 Steward: Foreclosure Date: 8/31/09
6618 Bethesda: Foreclosure Date: 6/5/09
4849 Bluestem: Foreclosure Date: 3/25/09
2635 Deliverance: Foreclosure Date: 6/24/09
An important thing to remember: By the time, the property comes on the market, it is immaterial on how much was originally owed by the the previous homeowner. Banks are not trying to recover what was owed. They really want to to sell the property as quickly as possible based on the market value and property condition.
How Does a Bank Price a Foreclosure?
This is the Million Dollar Question
Some banks intentionally seem to price properties very low to attract multiple offers. Then they wait for the multiple offers to come in before making a decision on which contract to accept. By this time, buyers must submit their “highest and best” offer for evaluation. The key note here is the “highest” sales price may not always “win” and be considered the best offer. The bank looks at the “highest” net to them at the fastest closing time to the most “solid” buyer. Many banks are now having potential buyers sign off on a multiple bid forms, to let them know that the property has received multiple offers. Others are now saying that a offer final offer won’t be accepted for 7 days, hence more buyers have a chance to see the property and submit their offer.
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Related Articles:
- Don’t let your dream house become a nightmare
- Buying HUD homes in Colorado Springs, Part II
- Buying HUD homes in Colorado Springs, Part I
- Pre-Qualification or Pre-Approval, which do you need to buy a home?
To find out more information about buying a Colorado Springs foreclosure, call ….
