GMAC; BPO came in at $390k, I'm offering .........

After 8 months of going back and forth with GMAC, the finally got a BPO at $390k.

The mortgage amount owed was $460k, plus all fees so by now could be close to $500k.

I’m offering them $340k and now they’re telling me to raise my offer. :argue

What do you all think I should do? I think $340k is a good offer, should I bother raising it?
The BPO told me himself that he appraised it at about $380-$390k.

This was the 2nd BPO they sent out… the first one was a nutcase who appraised the house at about $465k or so.

Any advice?

They aren’t budging… I tried to negotiate further and the guy said they won’t take anything less than $390k, the appraised value.

I don’t know what to do at this point !
I feel like I just wasted 8months on this bc $390k is too high for me to make use of this house. :flush

It’s unfortunate to spend all that time and not get the deal, but I think you have your answer, don’t pay more than you figure you should. If you do, you may end up losing money and then you’ll be wishing you wouldn’t have taken the deal.

I’m having the house listed tomorrow via flat fee MLS, for about $300.

I’ll list it for $420k and see if anyone bites and how fast.

If the numbers didn’t work for me on your deal, I would tell GMAC “asta-la-vista” and “you know how to get ahold of me if you change your mind later.”

If they contact you 2 months from now (which they very well could so don’t toss that file just yet) willing to re-open negotiations, tell them things have changed…blah…blah and you can only do $330k now instead of your initial $340k offer, knocking off another $10k in your favor.

Never say never because you just never know.

Meanwhile, don’t wait for the phone to ring from GMAC. Move on and start working on the next deal.

Good luck

Njbird, I don’t know the homeowners situation but before you pass on this deal try this last neat little trick to see if they bite. Tell the LM that the homeowner is going to file for bankruptcy at this point & if possible get it on an attorneys letterhead and fax it over. :deal

I don’t understand how that would help my situation? How would the owner’s bankruptcy affect the bank foreclosing on the home?

How are you listing it when you don’t own it and don’t seem to be an agent?

What right in the property do you have to list it? Show it? Put a lockox on it?

I’m listing it through the flat fee MLS, you don’t have to be an agent. Just pay them $3-400 and they list it for you. I don’t have any rights in the property either, but the owner is cooperative and doesn’t care what we do at this point. I plan to put a lockbox there soon, but there’s tenants in there in the meantime so we’ll have to schedule showings.

A bankruptcy filing puts an immediate stop on all collection actions, including a foreclosure proceeding. The bank would have to put a hold on the foreclosure until they got a judge to release the stay on the house. This means more time wasted, more time that the house could be trashed, more lost interest, more legal fees, and more aggravation for the bank.

You’re selling a house that you have no equitable interest in. I’d be very, very careful.

Let me see now - you don’t own the property, you have no legal interest in the property and you are listing the property for sale…that means that you are acting as an agent.

All states have laws designed to protect sellers and buyers. In my state, California, if you act as an agent without a license and a valid contract with an employing broker, you will be sued by the Department of Real Estate.

When I look at a property the first thing I usually do is check and see who the owner(s) are and the loan amount. If I would see your name on the listing (point of contact?) and another name on the public information, I would wonder what your true role is.

Agents (at least in California) are advised to check the license status of every agent they work with. If they don’t, they face lose of license and possible fines if the transaction has problems - either doing or after the escrow period.

I understand that it is easy and inexpensive to list a property through a flat fee broker. I would caution you that you placing yourself in potential legal danger.

Thanks for the tips and your perspectives.
However, I don’t see a legal issue here. The flat fee service is meant for anyone to put their house up for sale. The only agent involved would be the buyer’s agent if he/she brings us a valid buyer. The homeowner is aware of the short sale process and has no problem with the house being listed. Therefore, my phone # is on the listing, but I’m just someone taking calls for the homeowner.