Making offer on a foreclosure....help?

[kiminno]

I'm considering making an offer on a REO/(bank owned)/foreclosure. 

The list price is $160,000 (originally listed at $180,000). 

Homes in this neighborhood seem to have sold for  $150,000 and up in recent times.  There is another smaller house nearby also listed at $148,000.  Other homes in the neighborhood are all asking for upper $150's upwards to $200,000+.

From what I see on sites that list foreclosure information, it seems this home previously sold for $170,000.  But it also seems that what is owed to the bank is $125,000 (listed as 'opening bid'??) as listed on these sites.  Is this right? 

If so, does this mean I might get lucky making an super lowball offer over $125K???  Or rather stay closer to the list price? 

This is my first time buying a house, and I don't know much about buying a foreclosure.  So, any comments and advice welcome. 

Thanks in advance!!

[ShanetheMortgageMan]

In my experience the bank will want to see offers near or at the listing price.  Some of my clients have offered well below the listing price, just to get denied, then later see the same house having it's listing price lowered to what they offerered.  Even though banks are primarily objective, they still want to hold out for as much money as possible... making them more "subjective" in my opinion.  Nothing hurts by making an offer for what you want to pay for it, if the bank doesn't want to sell it for that much, they will likely counter to an offer that they will accept... so at least you know where you stand.  Tough to say if the information on the foreclosure website that you visited is accurate or not, I've come accross websites that state one thing on particular home and another website will list something different for the same exact home.  You can go to/call the county recorder's office and look up the trust deed that the lender has on the home to determine what the approximate amount owed on the mortgage is.

[kiminno]

Thanks.  Much appreciated.  At least now I have a realistic view of the situation.   Will do more research before any formal offers.

[ShanetheMortgageMan]

Welcome!