Newbie - Question Forclosure
I found a forclosed home in a ohio in a upscaled development. The home asking price is 256,000 and that is a fair market value. The bank Federal home loan bank out of AZ bought back the home in July for 225,000 and has let the home sit vanant and the bank is not runnign any heat and did not winterize the home.
The home has been on the market for apprx. 15days.
When we went to schedule a viewing we were informed that there was some mold in the basement. We still decided to view the home however, we were not expecting it to look like a giant petri dish. There was extentive mold damage and the finished basement they are advertising is inhabitable. We explained to he agent that we would like to hire an inspector to come out and assess the damage and was every explicted that we would not offer asking price. She understood.
Upon inspection it was also determined that the builder did not put instulation betweenthe siding and that they did not drill weep (??) hole in the brick. Also, that there was issues withthe gutters and that we may have to trench around the home to assist withthe drainage issues. Also, all the toliet busted b/c of the neglect and some of the floors need to be replaced fromthe water damamge. The inspector explained to the listing agent also that the home is inhabitable and that prior to showing the home she needs to disclose the mold b/c it is an health hazard.
The inspector told us that the issues were curable however would be costly. However, my husband is in commerical real estate and can do some of the work himself. Therefore we decided to go ahead and place an offer of $185,000. When we called to schedule a time to deliver the offer to the listing agent she then informed us that 7 day earlier the bank declined an offer of 241,000 on the home. We were discouraged but decided to go ahead with the offer.
Now, to my question....
I am wondering due the poor condition and the health hazard of the home wouldnt the bank want to get rid of it and should the agent have diclosed the other offer before we hired the inspector? Also, why would the bank if the home is in a marketable area take the steps to keep the home in a good condition the issues are most ly b/c of the lack of care onthere part.
thank you for all your assistance!
Michelle
Has the bank had the priviledge of seeing your inspection report or are they even aware that this home is in the condition it is in? My contention is that most loss mitigation departments of the banks shuffle papers and do very little, if any, viewing of these homes.
From the report, it is obvious to the most casual observer that this home is not worth anywhere close to the asking price. Does the listing agent really want to sell this home and collect a commission or is he/she hoping to find someone who wants into a home bad enough that they pay the unreasonable amount? Good Luck.
Dave
[addsig]
Dave~
Thanks for the understanding...Well, the bank saw the summary of the report and our offer was declined. They were unwilling to negotioate which I find strange. However, we will keep looking and who knows this may still work out because I truly believe they are really going to have a hard time finding a buyer for this home. Most people looking at a quarter of a million dollar homes in Ohio want something move in ready.
Thanks again!
Michelle
did you get your answer? If so can you send me it to me. Thanks