Question about foreclosure properties

[Anonymous]

I have a question regarding buying forclosure properties. Let's say if original buyer bought a home for $300k and s/he was able to pay until the debt remaining was $200k and then bank took the possession of property. 

So when a new buyer decides to buy such properties, are they supposed to start with $200k or orginal price of the house? OR maybe more than $300k if the price of the house has increased based on the market value.

Thanks

P.S. I'm a first time home buyer and researching about buying new home (not sure when - perhaps whenever I'm comfortable with my research)

[CA4Closure]

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@Anonymous wrote:

I have a question regarding buying forclosure properties. Let's say if original buyer bought a home for $300k and s/he was able to pay until the debt remaining was $200k and then bank took the possession of property. 

So when a new buyer decides to buy such properties, are they supposed to start with $200k or orginal price of the house? OR maybe more than $300k if the price of the house has increased based on the market value.

Thanks

P.S. I'm a first time home buyer and researching about buying new home (not sure when - perhaps whenever I'm comfortable with my research)

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Not sure of what your question is but when the bank resells the home, they want their money that they loaned the previous owner. So let's say it was $200,000. The bank, unless they negotiated a price for less, will not accept anything less than $200,000 as the investors do not want to lose on their investment. 

For other owners in the neighborhood, they do not like to see foreclosures selling for less because it lowers their value of their home. If you are in California, this is not the case, homes are selling at even very high prices right now because low inventory of homes on the market.

[NC_Mtg_Loaner]

It can be complicated and it can be simple, every situation is unique--just like all the others. 

When a property is foreclosed, the servicing lender assigns a Trustee to take ownership and this trustee (sometimes works as the Asset Manager for the Bank) will often times evaluate the property whilst he applies for forbearance and reports back to the Board of Directors whom will decide a course of action.  (How to make a profit using time/money theory)

I think it all depends on how quick a property will sell "as is" but some Banks/Real Estate Entities have a process they follow and it's often illogical and difficult to deal with as a consumer because that property is just a number or a piece of paper--even a random journal entry on the financial books of a sophisticated yet idiotic corporation that's just yearning to be someone's next home.