Got a a short sale house listed for $299,000 and an all cash offer for $310,000. One lender. One loan. Bank of America, BAC and Freddie Mac. Bank foreclosed at the trustee sale for $277,000!
The owner had tried to refinance, and to loan mod. Nothing worked, so he was advised by the bank to do a short sale. The owner thought that was best too.
Got an offer for $300,000 all cash. Great.
Bank wanted all the documentation from the seller, income taxes, W-2s, checking and savings bank statements, pay stubs, hardship letter, Request for Income Tax Transcripts (4506-T), Conviction Certification (Dodd-Frank), Request for Mortgage Assistance (RMA), Borrower Financial Information, utility bill, Authorization Letter, Freddie Mac Short Sale Addendum notarized by ALL parties, Estimated Settlement Statement (HUD-1).
From the buyer the bank wanted the offer, earnest money deposit, proof of funds. The usual stuff.
Two months later, the appraiser values the house at $375,000.
Bank counter offers at $350,000 minimum. Buyer raised his offer to $310,000 but bank said NO.
Trustee sale date was coming up and there was no postponing it. At the courthouse steps, the bank took the house back for $277,000.
From my perspective it didn’t make sense. But I know that banks have their own logic…like the horse in the picture.The horse will drink the water when it's good and reay and not before, you know?
What I would like to see in the future: The bank saying what is an acceptable amount from the start or appraising the place right away after an offer has been accepted to determine if the amount is good for them.
Nice going Freddie Mac.