80 cents on the dollar

I think you should be more skeptical of a site reporting on the "bargain" that is foreclosures, when they are advertising foreclosed properties for sale.

Back when I was a real estate salesman, every foreclosure property that came in the office for sale was in terrible condition. Appliances would be torn out. In the winter, toilets would explode from frozen water. The yard would be in terrible shape. There would be dirt and debris throughout the house.

That being said, banks realize the time-value of money (that is their business) and price the properties aggressively for a quick sale. They look for the balance of a quick speed with maximum price.

Banks are more rational sellers than most homeowners. They have a realistic knowledge of the property value and are willing to set the price target correctly to maximum value and get a quick sale. The same cannot be said for most homeowners. Especially true in this time of flat and descending markets. Real estate agents spend a great deal of time trying to convince the homeowners to set the price at market value.maximum value in the

So long as the bank reselling a foreclosed property tries to maximize its return then by definition the selling price is "the market price" - the price it gets is what the market returns.

Banks wait less time before they dispose of foreclosed properties - but that doesn't mean they aren't the "willing seller" that is hypothesized when one talks about "market price" Obviously, the term is used differently in the article, where it means somebody's guess, rather than the reality of a consumated transaction.

Today's bargain is tomorrow' average price.
Clowns from National and MA Associations of Realtors can tell you any nonsence like "prices will pick up later this year" or something. But listen to Benny Bernake: he is in panic and clearly stated yeatsreday that home values will fall!
25% discount for foreclosed properties is too small anyway if you take into consideration their conditions!

I looked at a foreclosed, bank-owned house (out-of-state) yesterday that is in good condition. Original price $370 -- bank now asking $340 -- lots of property in neighborhood for sale and nothing moving. What should I offer, what is a realistic sale price for the bank?

Each bank is different, as well as the people within it, so there's no "set realistic sale price." I've seen REO's go all over the place, from deep discount to finally giving in and buying for what the bank wants.

What's the home actually worth, what are the comps going for in that area...wouldn't hurt to see what are others asking for their properties (probably "top dollar" like many still thinking it can sell) as well, and see if values are also dropping just a little, or dropping a fair amount. Trulia, Cyberhomes, Realquest can all give you that information to at least give you an idea.

If 370 was decently below value to begin with (say house worth over 400), then 340 is pretty good, but you might even be able to get 300/310 out of them buying it "as is" (don't ask for silly contingencies like fixing something minor that you can do yourself without a problem). If it's really close, then 340 isn't too much of an overall reduction; even banks try to hold out as well. Offer much less and just see where they counteroffer/go with it. Even things as holding times for the bank can factor into what they want; it's all negotiations and every case is different.

I read that some banks will allow consumers to take over a mortgage that is in pre-foreclosure. Get the mortgage up to date and pay it on time for 6 months and they transfer the deed into the new tenants name. Is this true or a scam?