Bank Wants To Play Hardball! Now What!?!
Pre-foreclosure, 76K, FMV without repairs 92K, (home built in 1953, 1200 sq ft) owner considering Bankruptcy, Owner is four months behind on mortgage.
Submitted short sale offering 53,200 for the property, along with inspection, pictures, estimates etc. Bank says they are not accepting less than 76K, so now what? I hear I should not take no for an answer so what should be my next step?
"Pre-foreclosure, 76K, FMV without repairs 92K,"
What does this mean? Is it worth $92,000 in it's as is condition?
If it's worth $92,000, what was your compelling argument for them to consider accepting $53,200?
Thanks for your response Short Sale Pro,
Here is my reasoning:
Homeowner threatening bankruptcy
War Zone
Needs foundation Repair
Needs new Roof
Paneling in home needs to be pulled down from where previous owner tried to hide cracks in wall from foundation problem
Home needs to be rewired and a new breaker box needs to be installed to meet code
Huge hole in bed room from AC leak needs to be fixed
Brand New Homes on the lot of your choice for 92K right around the corner
My report from the inspector is EIGHT pages long! The appraiser that did the bank’s appraisal couldn’t have walked the home and gotten an appraisal for 92K. This appraisal is merely based off of comps. This guy didn't even look at the short sale package, he asked his assistant for the bottom line in the documentation and had already made up his mind that he'd take no less than what is owed.
What does Ron LeGrand say ... Some Will, Some won't, So What, Someone else is waiting.
You give it your best shot and then you move on.
I have a short sell now where the bank will not take less than 90% of the principle balance. The house is a wreck. The BPO came in exactly where I wanted it. But still, the bank will not take less than 90% of the principle balance. NEXT.
Did you give the bank's agent a copy of the repair estimate or at least let him know the repairs that were needed prior to his writing up his report? Were you there during the agent's walk through?
Brenda
bgross, i think she said the b.p.o. merely did a drive by appraisal or not even, just went with what the comps said. if they didnt even drive by the house they could actually get in pretty deep trouble. you might want to call them or there "boss" and find out. thats if you even now who did it.
yes, meeting them out there for the b.p.o has drastic effects on lowereing the b.p.o. i dont know if you did this, but you should have told the bank that you were the contact person for the b.p.o. and that there was heavy amounts of damage done to the inside of the house that needed to be seen.
but if they still wont budge, tell them there going to lose alot of money, maybe even laugh at them. and Move On.[ Edited by ZinOrganization on Date 01/07/2005 ]
Tell the loss mit rep that there is no way the BPO agent did an interior inspection. Then ask if they did an interior. If they did not, then say that they have to see the inside of this house and the repairs required to get a true valuation. Say that if they are hesitant then you could set one up with a local realtor. Would that be OK?
Brenda
Brenda just explained what my same approach would be. Interior is a MUST and is usually done, but one bank I dealt with didn't even care about a BPO, and another bank actually asked me to do the BPO myself and email it to her. It helps to be an agent in these situations.
Quote:
On 2005-01-07 22:09, bgrossnickle wrote:
Tell the loss mit rep that there is no way the BPO agent did an interior inspection. Then ask if they did an interior. If they did not, then say that they have to see the inside of this house and the repairs required to get a true valuation. Say that if they are hesitant then you could set one up with a local realtor. Would that be OK?
Brenda
Thanks guys,
I am still working this deal... the jerk at the bank is attempting to deal now. I think letter that I had my husband (attorney) draft on behalf of the homeowner stating the homeowner’s intent to file bankruptcy did the trick...
The guy at the bank called me yesterday stating that he wanted to do a walk through of the property with me. We are schedule to walk through the property tomorrow. Wish me luck…
Hey guys,
I pressed on and the bank settled for 65K and have agreed to cover the closing cost. We close this week. Thanks yall!
Wow! Congrats!
Out of curiousity, how much do you stand to net after repairs -- or is that even your exit strategy?
Did an interior BPO happen?
The interior BPO did happen and the as is appraisal remained 92K. The area is a HOT market right now. The only repairs that I am making will be cosmetic to make the house look “pretty.” I may spend between 5K and 10K to do this. Currently the fair market value after cosmetic repairs etc. are made will be 112K. The plan is to put a lease option tenant buyer in the property that will purchase agree to purchase “as is.” The lease on the property will be 1242.00; my mortgage on the property is 742.00 including taxes and insurance, so I will have 500.00 cash flow on the house per month for one year.
So this is what my numbers look like:
Purchased for 65,000K
Sell Price: 115,000K or Current appraisal value is, which ever is more
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Gross Profit: 50K
Plus or Minus Repairs 10K
Cash Flow: 06K
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Net Profit: Approx: 46K