Thanks to Dionne Morgan's post Are Foreclosures Like Bad Apples?, she saw what I had written as a comment to her and informed me that I had a blog within that comment. So, without further ado and to her little prod...here it is:
I have been working with a buyer for quite some time who is already approved for financing. This is very important in today's market...to know what the buyer's threshold is and I know it!
My buyer fell in love with a property as it suited all his needs...country setting and plenty of room in the house to be able to handle all his music equipment. This was perfect...one downside...it is a foreclosure! My buyer is qualified for financing (as I mentioned) through VA. The listing agent and I did not think there would be an issue.
Our first offer that was submitted was countered a few times before being accepted. By the time we received the contract back signed, we needed to make one minor adjustment...we needed to extend the closing date a little. The bank came back with a "we will not do this and now that we think about it, we are uncomfortable with VA financing". Had we not had to extend the closing date, we would have closed in May.
So, we play the wait and see game and notice that the property is still available after the extended date we asked to close. We submit another offer including the needed repairs to be taken care of prior to closing. We gave the bank their asking price so that they would accept it with the repairs to be completed.
We go back under contract on this foreclosed home and the appraisal came in $10,000 lower than the contract price! My buyer still wanted the property, so we thought (stupid us) that the bank would go through with the deal at the appraised price and we would close! WRONG!!!
The bank has now, several weeks later, lowered the asking price to BELOW what the appraisal came in at (how stupid), so we submitted another offer...A LOT LOWER, due to some new property condition issues! Someone (probably kids) had noticed that the property is vacant and decided to somehow obtain entrance into the property and damaged walls and gave the appearance they were "living" there. Had the bank not been so idiotic, we would have closed on June 2nd and none of the new damage would have occurred, as there would have been contractors performing the repairs, so no one would have dared entered the home, knowing there was activity!
What makes the bank think for one second that a buyer is going to pay MORE for a property than what it appraises for, especially in this market? Let alone, the buyer's lender won't allow it! This is a bank that owns the property...HELLO out there...you lend money, obviously, this is why you have the property back!
So, now we are back to the drawing table! What a fun business this is.
If only I had done better in school when it came to jumping hurdles!
Comments(15)