Britt Grothe…, Home Buyer in

$14,000 apart. So close and so far. How can this happen?

Asked by Britt Grotheet, Mon Apr 29, 2013

So here I go again.... We offered $200,000 on a short sale home almost 7months ago. 5 months later the bank responed with $340,000. We countered with $210,000. The bank came down to $272,000. We said, "No thanks" and the sellers rep asked us to supply a cost estimate from a licensed contractor to support our low offer. We did this and the bank ordered another BPO. That brought a value of $258,000. We went up to $220,000. The bank responded that they needed to net $224,000 on the first lein and $6,000 on the second which would mean our price would be around $252,000. Our best best and final is $235,000, which nets the first lein around $210,000. If I am doing the math correctly we are only $14,000 apart. But our agent is skeptical. He says once the bank has determined the value of a house and what they need to net they hang on tight to that number. The house will be foreclosed on in 2 weeks and the bank willl own it for nearly $500,000. This house is not in move in condition

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Sounds like you've been very fortunate to work with a patient agent and an accommodating bank. That's an impressive reduction in price. If you're able to buy below the BPO, I would jump on it in a heart beat.
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1 vote Thank Flag Link Mon Apr 29, 2013
Hold steady to see if they crumble. Math aside just move on if not meant to be,,,
0 votes Thank Flag Link Sat May 11, 2013
I would cut your losses and move on. Most short sales do not close.
0 votes Thank Flag Link Sat May 11, 2013
We ended up agreeing on a price of $248,000. This gets the bank what they wanted on the 1st and 2nd leins.
This is a "worst house in the best neighborhood" situation. Over the last year homes have sold in the mid-$500's and up. We wouldn't have been able to afford this neighborhood otherwise so it was worth the wait.
House definintely needs some TLC but we are up to it. Because of the school district we plan to be in this house for the next 15+ years... So we've got time.
Thanks for all the back and forth.
0 votes Thank Flag Link Tue May 7, 2013
You could have bought and sold a home in 7 months.

Wonder why I have only financed a couple of short sales in the last 20 years?

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
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0 votes Thank Flag Link Tue May 7, 2013
I heard and seen too many short sales horror
stories. Personally I do not recommend then. There is sufficient market to not be bother with then. It works for me and my clients.
If they insist , after my explanations , I let them go for it. But have yet to see one going for one.
0 votes Thank Flag Link Tue May 7, 2013
Are you as willing to "walk-away" as the Bank is?
The Banks have no emotion, and you shouldn't either.
The KEY to negotiating is the willingness to walk away.
There are other houses out there.

The other side of the coin; what will you think about it 5 years from now?
0 votes Thank Flag Link Tue Apr 30, 2013
We've been seeing this a lot, particularly with BOA. They can choose any professional Realtor or appraiser to determine value and even choose someone that isn't local to the area. Banks are holding firm to that value even if it is unfair. Short sales are not the bargain they used to be as banks have more stringent guidelines and better organization to process them. Best of luck.
0 votes Thank Flag Link Tue Apr 30, 2013
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