HSBC Bank owned property

[Anonymous]

Hi all, New member here trying to purchase my first home. Just would like to know if any of you have dealt with buying a bank owned property? Specifically HSBC, they have a property that they just acquired back from a foreclosure, been on the market for a while. I made an offer,I have to admit  my offer was on the low side, but I think in this economy it is a justified offer. Listing price is 89,900, I offered 65k with a closing date of 30 days. Do you think the offer is too low? They countered at 83k. Was just wondering is this bank difficult to deal with or am I just shooting too low on the price? I thought they would rather sell the property than keep it on their books.Thanks for any advice or  information.

[mocha82]

I'm not familiar with HSBC as far has homes.  But usually banks are just trying to sell the property for what is still owed on it and not turn a profit.  Banks aren't that desperate to sell.  If so, there wouldn't be so many short sales and REOs on the market.  The banks often don't hold all of the cards.  It's the investors that call the shots.  I think that the 65k was a lowball offer.  I cant blame you for trying it but I don't think that they are going to budge a lot with their price.

[Anonymous]

Thanks for chiming in,Only reason I offered  what i did is because I've been seeing a lot of bank owned houses selling for 10-20k less than asking.Also been checking on our county auditors website and I don't know how accurate the info is there, but it says the bank bought the house back at 60k. I forgot to mention that when they first listed the house 560 days ago they were asking 160k, over the months they have been constantly reducing the price 105k,99k,89k. When the listing agent showed me the house she even said in a couple of weeks she was going to lower the price again,that's why I went ahead and made a offer.Thought I could save them some time by  not having to keep lowering the price every couple months. I dont know what my next move is right now.My family really likes the house but then again I don't wanna overpay in a soft market. I might counter at 70k and see what they say ,then just walk away if they don't wanna cooperate with me. Another question is I was talking with a friend and he was saying I might have a better chance of getting a good deal on the house if I got my loan from the actual bank that has the property, that way they can recoupe some of the money from the foreclosure.I don't know if that is accurate or not? Any suggestions?

[Anonymous]

*** Update ***  The bank lowered the price to $68,900, I offered 6700, they accepted.No I have to try and get a good interest rate, my first quote I got was 4.25, I'm a newbie and don't really know where to look for some better rates.Any advice out there for me or is the 4.25 a good rate? Thanks

[drkaje]

Awesome!!

I have to start looking for a home. Housemate is getting married so I need a new place to hang.