The bank sent a BPO back in January that came back ridiculously high at about $500k or so, and they won’t send another BPO.
I’ve had the property listed for about 4 months now starting at $515k, $499k, $489k, and now at $449k. The bank told me not to bother lowering the price because they won’t take anything less than the $480k range.
But I reduced the price anyway, because at $499k, I only received one offer at $425k. So I wanted to show the bank that even at $449k, I’m still not getting any offers and they should take the $425k offer.
Well… they still aren’t budging. Foreclosure date is in 2 months.
I finally convinced the bank rep to consider looking at some comps to justify the lower price, and I’m waiting for her reply now.
Any tips on what to do here? If she calls me this week and still doesn’t budge, I’m basically going to close this file and consider it a lost case.
Homes in much better condition ARE selling in the $480k-$515k++ range. But the subject home doesn’t compare directly with those homes. There are also homes selling for $399-$440k range which are very similar to the subject home.
I spoke to the bank rep yesterday and told her that I spent so much time on this file, and I’d hate to see it foreclose. So as a last resort, before I close this file… I’d pay them from my own pockets to send out another BPO, because I’m convinced that I have the best offer right now.
She thought about it for 30 seconds and then said that wouldn’t be allowed. But, then she pulled out those comps I sent her and I explained it in detail to her. At this point, she said she’ll look into it further and get back to me.
So, there’s still a slight chance. If not, then I’m done with this file.
You mentioned props in better condition are selling for 480k+. Does the subject property have any mechanical or structural repairs that you could point out or provide estimates on?
Also, keep standing your ground, especially if your comps substantiate your claim to the value. LM’s love to say NO, it is nothing more than a negotiating tactic. Be persistent and as you get closer to the sale date, they will loosen up. Several times I have had a LM give me the “don’t bother” speech then end up taking the offer a month later.
Best of luck
Exactly. That is what LM are there to do - shoot us down. We are there to show them the reality. As long as you are confident about the comps, stand up and if they tip you over too many times, then I would tell them they can have it back.
I had Citi tell me they would not accept anything but full value - (well I get that alot) but I explained the area, damages, comps etc and LM agreed to get a BPO out there. We told the BPO what LM wanted and he said they were out of their minds. So I know even more now that we have a strong case with the offer that was sent in. We shall see. Sale is in 5 days. : (
Any update on this?
In my case, the file was handed off to someone else and he left me a msg on Friday. I haven’t made contact with him yet… but once he calls me back I’ll run the same routine with him and see if he takes the offer.
If you are referring to me. As a matter of fact, got a call this morning and they want a full offer, period. She has been pretty persistent even after receiving the BPO. Not sure of the numbers, no one would tell me but the BPO stated they should accept our original offer.
Well that didn’t happen They did extend the auction. I’m looking for another buyer and probably won’t talk to the lender until I do.
I’ll be working on a better market analysis too. The house is tough to comp. We have to go 3 miles out to comp because this house is a 2002 and the two neighbors are the same but within a two mile radius, the homes are all built in the 60’s and 70’s. The neighborhood is in poor condition, has graffiti in the neighboring house and alley way. This house even has, what look like bullet holes (about7 holes) in the front and the window shattered. If they don’t want to look at this as a dump and keep asking for full price, then they can have it. Maybe I’ll get lucky too and the file will get transferred to someone else. They usually rotate every month.
Have you sent them the bullet holes and graphitti pictures? Show them some beer bottles around and the house neighborhood. These lenders don’t want dumps like that ( High risk or drug dealing or rape, murder, ect. and they are owners, remind salary sally that too) as they are liable as owners. Do a drive by photo at night late and haul B… after you take it. If you show gang activity they will crumble at your feet. I hope you have a buyer for a piece like that.