I have having a problem with the bank/realitor. Here is the sad story.
In 2006, a nice brick 2 family was sold to an investor for $138,000. This was WAY too much given the $1250/mo total rent. The investor used a $109,000 first and $28,000 2nd to swing the deal.
Fast forward to June 2008 and the property is in foreclosure, the Sherrif’s sale is 1 month away and the property has sat on the MLS at $109,900 for months with no action.
3 weeks before the Sherriff’s sale, the MLS price drops to $99,900 so I jump in with a $87,500 CASH offer. Three weeks go by with no reply. Then the day before the Sherriff’s sail, the listing agent says the banks wants a higher offer from me, but would not say what they need. So I bump my offer up $750 to $88,250. The next day, minutes before the Sherriff’s sale, I get word my offer was accepted, and by the end of the day I have a signed contract for the property.
I spent a good bit of time in the past week getting the title/insurance/inspections moving along for a closing next week. Well, today I get word that the bank never really agreed to the short sale and they now want $93,000 which is 90% of the recent $103,000 appraised price. They bank says they need to get at least 90% of the appraised value. My agent is VERY pissed at the listing agent for this whole depacle.
Anyway, I told them in no uncertain terms that $88,250 is my highest offer and indeed it is a very generous offer given that it is CASH. I am waiting to hear back. My agent think the bank is just trying to squeeze some more cash out of me. I can’t believe they would torpedo this CASH deal for only $5,000
I am just thankful I found out about his crap before I paid $400 for an inspection.
I read in this forum that 70-80% of appraised value is more typical these days.
Any thoughs from the experts???