Maggie,

You're dealing with a bank and thats not how they think. I think if the BPO was $320k and your offer was $240k you're offer is way low. Prepping an REO for sale does not take that much money. I would start looking for homes in your price range of $240k. Best of luck to you.

http://www.dawnsellssandiego.com/

Unfortunately it is simply numbers in business. If they will net more by selling the property to someone else, then that is what they must do. After all, a bank's duty is to increase value to its shareholders. If they didn't get as much money as they could for the property, they would not be doing their job.


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Hi Maggie,

Our company receives listings from three different banks. While your point is completely valid, know this is a business decision for the bank and their job is to recover as much of the value of the previous loan as possible. The bank also has federal regulators and investors to answer to for each property they sell. Furthermore, the majority of their expense is in the foreclosure process. This is an average of $50,000 per home in CA, the cost to prep the home is minimal.

In terms of a sale, most BPO's are accurate today and most homes in this price range close above the list price. If they get $320,000 - cost of sale = approximately $296,000 which is still $56,000 over what you offered. Again, this is simply a business decision.

Our advice is to take the Cash for Keys aid they offer to assist you in moving and look to the future in terms of you owning your own home.

Best regards,

Mark and Kari Shea
San Diego Real Estate Experts
Investment, Foreclosure & Short Sale Specialists,
Development Opportunities & Traditional Real Estate

Maggie

If the BPO is an accurate picture of the current value of the home, then it is safe to say they most likely did not counter you because your offer was lower than they believe they get on the open market even after the expenses you mentioned.

Regarding why they did not counter you:
You mentioned you made an offer for 240,000 which was also the max amount you were approved for. If you provided them with this loan approval information, they may not have countered you because according to you, you could not go any higher. If your financial situation has changed you could always submit another offer. :-)

Greg Godwin
1-800-GET-GREG