Lender SS Price Increased 65%, Why?

lostonian profile photo

I have been working with Household mortgage on a deal for the past 2 weeks. I submitted an offer at $39k and it was rejected. They asked me to resubmit a second time and I did at $42k. The contact person at Household told me that they were looking for $45K but would consider my $42K offer. Well now that have rejected my offer of $42K and are asking for $75k. I told him I would review the numbers again and make a final offer by Monday. The house has a ARV of $87k-$90k. Repairs are approximately $4k. I am thinking of putting my final offer in at $52k. What went wrong and why would they make such a change in price?

Comments(7)

  • tbelknap11th June, 2004

    What did the bpo come in at?

  • TheShortSalePro11th June, 2004

    Picking up on the BPO angle...

    The can keep you dancing in the wind allowing you to think that you are in the game until they get their information.

    The contact person at Household told me that they were looking for $45K but would consider my $42K offer.

    As you know, and to quote a former professor, "Whatever isn't written is rotten...."
    [ Edited by TheShortSalePro on Date 06/11/2004 ]

  • lostonian12th June, 2004

    The BPO came in at $45K. That's what makes this scenario pretty weird. I think the deptarment manager requested a 2nd opinion or another appraisal review.

  • jpchapboy12th June, 2004

    I would offer 45k and if they don't accept it, walk. There are plenty of other deals. let them figure out how they are going to reconcile owning the property in their books.
    Josh
    [addsig]

  • active_re_investor12th June, 2004

    It is never completely clear how a deal sudden takes a turn for the worse.

    You need to stick to your numbers and be prepared to move on. It will come across in your tone that you do not need the property if the lender does not want to work with you.

    John
    [addsig]

  • maxwellpropertyinvestment13th June, 2004

    Don't worry about what they want or say. Run the numbers that work for you and stand your ground. If they except then your in the game. If not your on to your next deal with numbers that work for you. Don't get hung up on one deal.

  • kswish13th June, 2004

    I agree with the folks here. A lender can keep you dancing for not only weeks, but months. Submitting an initial offer is a must, but more than one re-submission to me and the lender is playing you to see how much you will pay and how much of their money they'll recoop.

    I'd move on unless you have some emotional ties to the house.

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