OT - I need a real estate agent to answer a question....

[SandraC]

When a property is listed Power of Sale, what does the mortgagee expect for a listing price? We are looking for a fixer-upper cottage/cabin and see Power of Sale a few times. Thanks, Sandra

 

[seashoreCM]

As far as I know you can offer whatever you want, just as you would with a "standard" listing.

You may inquire of the mortgagee what the "amount owed" is. Still, some mortgagees may take somewhat less while others may want close to the amount owed.

When making an offer on a fixer-upper, nothing wrong with taking into account your anticipated labor and logistics in getting the property into very good condition.

 

[cdnmickeylover]

The simple answer is that it depends. They will probably want a fair price for the property because if it's going power of sale they have to account to the owners of the property for the price that they get for the house. They can't fire sale the house. If the sale is being done under a foreclosure that's a different story and the mortgagee doesn't have to account to the owner for the price that they got.

If you are looking for a good deal also look for tax sales by municipalities. If you don't pay your taxes municipalities can sell the property to recover the tax amount owing. You take the property as is but you can sometimes get a deal. Each municipality sells the properties somewhat differently.

 

[sean-1966]

We bought our house Power of Sale. Got a great deal. But it was as-is. No warranty of any kind. Make sure you have an inspection done. It could save you a fortune down the road.