No. of Recommendations: 1
what does estimated sale price actually mean?
Is this the balance owed on the principal?
Is this what the lender wants to receive?
Is this the balance of the loan?
Is this an estimate based on an assessment?

From what I have observed, the 'estimated sale price' is based on amount listed in the trustee's deed, which can be the original loan balance, the balance that was owed at the time of the foreclosure, the amount that the bank bid at the auction, or some other seemingly random number, depending on how the documents were prepared. If your area has web access to public records, you may be able to find the trustee's deed for this property to confirm this.

what are the chances (in general) of offering 60-80% of that in cash and having it be accepted (this is assuming that it does not go to auction)

If it's an REO, the bank owns it, so it's already been through the foreclosure auction, if there was one. (Not all bank owned properties are actually go through a foreclosure auction - sometimes the borrower just gives the property back to the bank using a 'deed in lieu of foreclosure' process. And depending on the state's rules, there may not have to be an auction to be foreclosed on.)

Does the bank have the home listed for sale? If not, you are going to have a difficult time buying it.

If it is listed for sale, the asking price would be your starting point for negotiations. You may want to contact a real estate agent who specializes in foreclosures in your area.

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