How Flexible are Banks on Foreclosures?

Real Estate Agent with Century 21 New Millennium

Time and time again the question comes up from my clients, How flexible are the banks on a foreclosure property?

Well based on my experience with these type of deals, more and more banks are paying for closing costs and will negotiate on the sale price.  Of course they want to make the most money possible on a sale but it never hurts to make an offer.  The best they can do is accept it or Counter-offer.

My last foreclosure deal closed and when all was said and done, the bank payed 3% in seller subsidy and accepted a sales price of $5000 under list price.  It's all about negotiation.

Let Stacy Magid help you buy your next home.  Call me today and we can get started!!


Stacy Magid
Licensed in Virginia

Coldwell Banker Elite
703-599-5337 Cell

703-445-9100 X479 Office

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If you are looking to buy or sell a home in the Prince William, Fairfax, or Arlington County area contact Stacy at or call me at(571) 357-2748. Put my record of great customer service and experience to work for you. 



Stacy Magid
USAA MoversAdvantage Preferred Agent


Century 21 New Millennium
12581 Milstead Way Suite #400
Woodbridge VA 22192
703-599-5337 (cell)
540-658-2185 (fax)
PWAR  Top Producing Team



Short Sale & Foreclosure Resource Specialist
Licensed in the Commonwealth of Virginia 




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Paula Smith
Red Rock Real Estate St. George - Saint George, UT
Paula Smith Red Rock Real Estate
good info.  We have started to see many foreclosures in our market...I have not done any offers on one yet, so I wondered if they budge at all.
Nov 09, 2007 11:42 AM #1
Sandi Bauman
Chico Homes Real Estate - Chico, CA
Chico CA Realtor
One of my bank representatives readily admitted to me yesterday that he had just accepted an offer $50,000 below asking price... not $5000! 
Nov 09, 2007 03:49 PM #2
Sandy Bacon
MacDoc Realty - Fredericksburg, VA
Stacy--in a class I attended a couple of days ago on short sales and foreclosures the attorney who gave the class from one of our local settlement companies told us that they are seeing banks accept offers $100,000 below what is owed.  This is very telling in our market.
Nov 10, 2007 02:33 AM #3
Stacy Magid
Century 21 New Millennium - Woodbridge, VA

Sandy, Wow that is amazing!  Wish more buyers were placing offers on them.  There are some great deals out there.  It's up to us as Realtors to educate them on the process. 

Nov 10, 2007 02:42 AM #4
Nancy Moeller
Seven Gables Real Estate - Anaheim Hills, CA
I've seen it both ways. We had a bank last week, counter back at asking price acting like an insulted seller. Go figure.
Nov 10, 2007 03:04 AM #5
Anthony Saunchez
Campa Properties - San Bernardino, CA
How can we be of service
I guess it varies from bank to bank. I would take a look at how long they have been holding the property. The longer the better. Also bid on multiple properties. With time and a forum like this we will find out who really wants to get those properties off the books. 
Nov 10, 2007 04:27 AM #6
Stacy Magid
Century 21 New Millennium - Woodbridge, VA
Nancy had the exact same thing today.  It's pathetic in this market since there are over 1000 other homes to choose from.
Nov 10, 2007 06:28 AM #7
Konnie Mac McCarthy
McLean, VA
Associate Broker - VA & MD
Hi neighbor....hey Stacy do you think lenders are getting more flexible..?  I have had a rought time negotiating in the past...have not worked a foreclosure in the last couple of didn't know if banks were changing their tun a little..
Nov 10, 2007 08:38 AM #8
Stacy Magid
Century 21 New Millennium - Woodbridge, VA


I believe they are flexible if you submit a reasonable offer.  However if you submit an offer that is extremely low, like $90K on a $400K home  and the comps are consistent with the list price they are going to reject it out right.  At least that was my experience today.

Nov 10, 2007 09:36 AM #9
Corinne Shepard
Better Homes and Gardens - Auburn, CA

Good tid bit of information.  Banks will negotiate but it also depends on the REO officer who is holding  the listing, some won't budge.  It never hurts to try, you have to start somewhere.

Nov 10, 2007 12:00 PM #10
Trey Thurmond
BCR Realtors - College Station, TX
College Station , Texas Homes

I have handled 4 foreclosure listings over the last 2 months . The representative were willing to be reasonable, which is not what I witnessed in the last downturn. Back then some banks sat on their inventory until the cows came home and the bank was forced to close by the FDIC. When I say reasonable   that       doesn't  mean give away the bank , it means they want to get it sold.

Nov 10, 2007 12:10 PM #11
Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375
Flexit Realty "Flexible Home Selling Solutions" - Grand Rapids, MI
Real Estate Services You can Trust!
Hi Stacy, I have found lenders and the mitigation departments to be more flexible when actual information is used, photos, repair costs etc.  Rarely have I found a foreclosed property in move-in condition.  Nice post Stacy.
Nov 12, 2007 09:54 AM #12
Stacy Magid
Century 21 New Millennium - Woodbridge, VA

Gary, I have a foreclosure that is in move-in condition.  We have so many foreclosures in our area that are brand new or close to brand new and are immaculate.  Then of course there are the other ones that are infested with roaches and stuff. 

I am starting to notice that the banks are getting ever more and more flexible as days on market increase. 

Nov 12, 2007 11:22 PM #13
Nick Good
The Good Home Team with Keller Williams Realty - Allen, TX

It seems like every client I have right now wants to buy a foreclosure... and thats when I know the headaches begin.  I closed on a property a month ago that was one big headache... when I first talk to the listing agent they told me that the bank would not allow my client to roll in his closing cost (turned out to be not true) and I did not know until the house was under contract that the title policy would be my buyers responsibility (a little bit my fault for not going back over the small line a 3rd time to see what it had actually said)... in the end I was able to talk to the listing agent to talk to the bank to allow us to bump the sales price to roll in his closing cost, but it really was like pulling teeth.


I think there should be a more uniform contract and requirements for handling foreclosures! 

Nov 15, 2007 03:03 PM #14
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