I offered the bank 110k. The lender called me back with a counter offer 190k. 190k came from the real estate agent they hired to do the report for them (BPO 190k). I called them back this morning to counter offer. I raised my offer to 120k. They said they only discount 10% from the BPO. I was told to called back with an better offer.
The property worth 170k. The house is in moving condition.
what question should I ask to make them more motivated? what should I say to make them lower their offer.
I second everything rgchamb[b][/b] said. Did the lender do an interior appraisal? If not try to convince the lender to order another, interior, apprisal. If you are at the appraisal you might be able to get the numbers in your favor.
In the end if they will not come to a number that works for you pass on the deal and let the homeowner find another who might help them better.
Lender order the BPO. and I have met with the broker who did the interior inspection. I told him that I am a real estate investor. I even showed him the comps in the area.
There is nothing wrong with the house, no repair lists.
I have had a couple where the appraiser seemed on my side and then wrote up a report not favorable to me.
If it is worth it to you, you can always try very hard to convince the lender to re-due its appraisal. Send in pics of damage. Be creative if you must. I do not mean for you to cause damage just frame the pics in such away as it looks worse than it is. Once out pitch your best to the appraiser.
The BPO came in at 190. You stated the property is worth 170 and is in “move in” condition. Most lender/servicer Loss Mit departments are not completely daft. If your max for this deal is 120 you probably need to find another deal.
I just read a HUD audit report that said that SS appraisers need to appraise at FMV, and use comparables (not distressed sale comparables) to do it. Ridiculous. Sounds like they might have done that to you, swgprop.
rgchamb - No I haven’t done any SS work as of yet. I work both sides. I work the foreclosure market for myself - and I work for a loan servicing institution. Bottom line is servicing institutions are becoming increasingly sophisticated in their analytics - out of necessity. They need to mitigate losses on behalf of their Wall Street investors and show the rating agencies they are adequately addressing rising default levels. So if you can convince them to take 120K on a property worth 170K more power to you. I’m just suggesting that x_kamikazez_x may be facing an uphill battle.