Hi Wcmom,

I'm your WCneighbor here. Walnut Creek hasn't seen as much of the foreclosure activity that some of our surrounding cities have. The Asset Manager at the bank, has control over price. However, they are bank operations specialists, not appraisers, and they rely on field agents like Realtors and Appraisers to tell them what the value is. So far, all of the factors mentioned in the previous threads have been spot on. It is a combination of all that has been pointed out probably.

If the property is owned by a large institution, they can carry the property longer than say "Brick & Mortar Bank of the East Bay" because what they have in reserve is larger; larger depositor base, and larger loss provision. Aside from that, you have to take into consideration the history. If the property went in to contract at 45 days on the market and then fell out and then went into contract again and fell out for whatever reason. If that was due to buyer nonperformance, then the Asset Manager doesn't have justification to reduce it because the price is right. Trust me, the listing agent is required to give the Asset Manager feedback in the form of a Broker Price Opinion on a regular basis.

The other thought that comes to mind, and relates to a previous comment, is that there may be a cloud on title that is preventing the bank from going into contract and being able to close. The bank is not going to risk incurring a lawsuit from a buyer who felt damaged as a result of something the bank didn't foresee.

Condition could be an issue. Or, If the repurchase by the bank was at a very high price because the home owner overleveraged the property so there is no wiggle room to 'wheel and deal' with buyers. For example, I saw a foreclosure listing in Livermore where the bank repurchased at $1.3 million dollars. The list price was a deal at $1.1 million or something, I forget. Anyway, point is, the bank has to have wiggle room especially because of the propensity for buyers to low-ball on foreclosures. Some of these higher end foreclosures are coming on the market with the bank having already taken a $200K blow to the mid-section.

Finally, it could be that the listing is stale. The Asset Manager manager came on too high and missed the market.


Arturo C. Shivers, Realtor
CA DRE Lic. #01779941
Keller Williams Realty
760 Camino Ramon, Suite 200
Danville, CA 94526
Office: (925) 855-8333 Ext. 272

I understand your frustration.

If I were your agent, I would find out what I could from the listing agent and review the history available on the property. At the end of the day you may think these answers still make no sense, and they may not.

The question is: can you walk away from this home? I can walk away from any price I don’t like and you will find that you will too unless you have to have this home.

This question raises a few more questions...

When did the bank foreclose?
How much did they foreclose?
How much was owed
How long ago was it listed at the price that you want reduced?
Is this listed now, by the foreclosing bank?
Or is the last list price you're referring to the price they had when it was offered as a short sale?
What is its market value compared to similar for sale/sold homes in the area?
Did you write an offer, and if so, did the bank reject/counter your offer?
If you're planning to write an offer, what is the list price compared to market value --- if your offer is seriosly low-ball, then you may need to devise a better strategy to your offer if you want to be in the running.

Several possibilities exist here. The likely scenario is that while the property has been vacant for 2 years, the bank may have just completed the foreclosure ... and until they own the property the bank does not control what the listed price is. And the bank still may not have completed the foreclosure process. I have clients who walked from their property in 2007 and the bank did not complete the foreclosure until June of this year... 30 months.

One of the realities is that the banks are required to adjust their reserves based on how much property they have taken back in foreclosure... giving them lots of incentive not to complete the foreclosure. Combine that with the pressure from Washington to increase the time frame for homeowners to get a loan modification or a short sale and it becomes a giant inoperable mess. So the properties sit.

If you have any additional questions regarding any of this please feel free to contact me either on my cell (925-408-0037) or by email at: steve@SteveCurtisHomes.com

Steve

Hello WC Mom:

Every case is different. Sometimes a home has been vacant for a long time but it may only have been listed for sale fairly recently since the bank foreclosed on it. If you could let us have the address, we can probably provide some insight.

Bernard Gibbons

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Bernard Gibbons, Realtor, e-PRO Certified Internet Specialist, DRE License # 01331583
J. Rockcliff Realtors, 15 Railroad Avenue, Danville, CA 94526
Phone (925) 997-1585
bernard@bernardgibbons.com

See all homes for sale in Contra Costa and Alameda Counties
at http://www.BernardGibbons.com

Hi ,

There is a lot of this going on right now, mainly with short sales. I know many people in this boat that have made good offers and the banks don't get back to them, some of them over a year. I would recommend to find another property.

I would be happy to help you,

The banks are a mess. Right now they are not actually in a hurry to unload all of the properties. It appears they may be trying to inflate the market by trickling out the inventory.

Instead of asking why a bank wouldn't reduce the price, why not make an offer with the price that makes the most sense to you?