We're sorry for your frustration and bad auction experience. The bank's representation did exactly what they are coached to do at auctions....an that is to not let the property go for anything less that the debt that is owed to them. The $385,000 is obviously the amount owed plus legal fees, liens, processing, etc.
The sad part of this is that you were willing to purchase the home for $285,000. The all together too often scenario is that the bank later sells the property as a foreclosure for less than the amount the they could have recognized by taking the earlier offer.
The best advice is not to get too involved trying to understand why banks do anything. Many decisions defy logic, common sense, or any resemblence to good business practice and could cause normal people to start talking to themselves.....
There are no guarantees or promises, just some experiences I am passing onto you. Larger banks like Wells and Bank of America usually will go the REO route. If that's the case find the agent who will represent that property, and stick to them like glue.
I am very sorry to hear your story as I hear it all too often. I equate banks like politicians, why would you take a mediocre pay unless you were going to be rewarded 10 fold. I'm afraid the real world is ALL about money and Bankers are notorious for getting the most they can. Otherwise why do they pay you and I less than 1% interest on our accounts.
I respect your persistence and good things come to people like you, hang in there.
Thanks for your response! You really put it into perspective for me since I have been talking to myself for a few days now :) It really has been driving me crazy and I know I will never get a good enough answer to justify why the bank took my dream home away from me. I guess all I can ask now is what can I do to get it????? Is there anything I can do???? I was just going to wait until it hit the market and have a realtor put in a cash bid with no contingencies if the price is within my original 285,000 bid and hope that they accept! Any advice on how to proceed?
Thanks Again, I truly appreciate all the feedback from everyone.
Thank you for your response! It was very helpful to read your reply and try to understand why they do what they do. I didnâ€™t mention it but the home I am interested in was to be auctioned off last year in August, so you are correct about them pulling them out of the auction and collecting their funny money from the government. I have spent endless hours doing my homework on this home and I was confident in my findings to proceed with a cashierâ€™s check for $285,000 to purchase. I had a title search done by a title company, I researched the court records myself to cross reference with the title companyâ€™s findings. I went as far as pulling the plat from the recorderâ€™s office to look into easements. Also, in my findings I located all the previous owners, which were only two, but one of them did rent it out. I found the renters on facebook and looked threw their public photos of them living in the property. I know where they all live, their numbers, ect. Defiantly not a lack of research on my behalf. And this property is now an REO since Wells Fargo outbid me at the auction just hasnâ€™t hit the market yet. Thanks for the luck; I sure do need it to continue my quest for a way to get this home.
I feel better knowing I am not alone trying to understand this whole mess; however I am unable to change my expectations on the home of my dreams as suggested. I am currently looking at every home on the market not just bank homes. Unfortunately the home that meets my requirements as to what I am looking for to live in the rest of my life happens to be bank owned now since I lost the auction. I currently own and I am not willing to just settle as it wouldnâ€™t be fair to my daughter since our main reason for moving is for better schools and a little bigger home. I would choose to stay in our home now and put her into a private school than to move into something that I donâ€™t see myself wanting to live in just because it seems like the best deal ever.
I do appreciate the feedback, Thank YOu!
Banks are not in business to lose money and trust me the old adage of lenders don't want to own real estate is not true today. They may not want to keep them and rent them out but they sure do want the properties back at the auctions. I know of 5 properties that went the way yours did. other times the bank pulls the property back on the auction day. Unless we can chat with the banks asset manager we will never know their actual reason, other than not to lose money.
That way they can take their losses, fix-up the property or wait until timing is better for them. This is the reason why they take so long completing short-sales, or very few loan modifications are approved. If you have your heart set on purchasing these kinds of properties Indymill, go after the REO's. These are properties already taken back and on the market for resale. Most lenders prefer owner occupants top investors. Besides unless you have done your research and homework, you could get stuck paying off other liens at a sheriff sale. Proceed with caution, please.
I hope it all works out for you,
Principal Broker, REALTORÂ®
MacDuff Realty Group, LLC