Home Buying in Meridian>Question Details

Danielle Wal…, Home Buyer in Meridian, ID

Meridian, ID Fixer Upper

Asked by Danielle Waldron, Meridian, ID Thu Jun 14, 2012

A house that is currently in foreclosure, not bank owned was listed at 135,000, and offer was accepted but the inspection came back with water damage and more so the buyer walked. Idaho Housing came in and did an appraisal and came up with 125,000, relisted as bank approved amount with quick closing, lots of showings in a few weeks but our offer was the only offer because of damage, we got a mold inspection and they said siding and carpet need to be replaced, removal of some moisture in the crawl space, as well as some leaks in the bathroom and a few other cosmetic issues. We agreed that was fine, we would continue with deal. Deal went to Fannie Mae, we expected no problems, well Fannie Mae did an audit and hired an appraiser who appraised the property at 140,000!! We are floored, this is our ninth offer and we thought this one was in the bag. We countered with the same price, 125,000, and listed all the problems that we have to take care of. Anybody had this happen to them??

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5
Danielle, the only rule about today's short sales and bank owned property is that there are no rules.

I have been a licensed Realtor for over 20 years here in the Boise area and I have never seen it this messed up before. I have had appraisals come in both high and low as the market tries to figure out where it is at.

Common sense is no longer common. Logic appears to be a detriment to getting things done sometimes. I think instead of partnering with the lenders on my marketing, I would be smarter to try to partner with the pharmaceutical companies and give out free samples, during these trying times.

Best of luck!
Jim
1 vote Thank Flag Link Thu Jul 5, 2012
A lot of the foreclosure departments are not accepting offers less than what the property is assessed for. Check with the tax records department and see if this is the case. I agree with Jim however, that when you are dealing with lenders, foreclosure departments, short sales departments, they hold all the answers and power. Good luck.
0 votes Thank Flag Link Thu Jul 5, 2012
Sorry to hear you are having issues closing. The only rule in today's distressed real estate sales is there are no rules!

I just had an appraisal come in 30% low. It appraised at less than the previous sale and appraisal as a bank owned property before the seller put about $20k into it

Are you sure it was a full appraisal that was done or was it just a "Broker Price Opinion"?
0 votes Thank Flag Link Thu Jun 14, 2012
I had a short sale where they approved a price, but the buyer walked (tired of waiting), then they wanted $20K more the next time around...
0 votes Thank Flag Link Thu Jun 14, 2012
Hi Danielle,

I'm so sorry to hear about your situation...I have a seller short selling a Fanne Mae property as well and we have dealt with similar issues.

We had a buyer's appraisal come in at $170,000 and Fannie Mae basically said they weren't going to consider our appraisal so they decided to stick with their BPO (broker's price opinion) which was $214,000.

The only advice I can give to anyone looking to purchase short sales is that you need to know that it is not always an easy process. Sometimes you can get them closed smoothly with quick responses while other times it takes forever to get answers and the answers aren't always what you wanted to hear. My suggestion to someone that is tired of dealing with that would be to look for properties that are not in short sale. If you want or need to move in to something quickly, I'd suggest you look into homes that are bank owned or are equity sales.

Best of luck to you!
0 votes Thank Flag Link Thu Jun 14, 2012
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