WHY Banks Are Losing Money
This is from the STUPID FILE of things banks do on bank owned properties. There are certainly enough stories to complete a library and yet, just when you thought you read the one to beat all stories, another comes along that makes you scratch your head in wonder.
My clients want to buy a modest home on a few acres, priced at $64,900. They offer $45,000. since it’s been on the market for about 5.5 months. Offer rejected! They look at a few more homes and decide they would like to offer $60,000 on the first home. Okay, sounds like a deal which should be solid. Cash offer, close quickly, close to asking price.
Offer countered at $77,900! The bank has new information which confirms the new price is more in line with the value. I talk to my clients and all I can figure is the bank wants full price. My clients reconsider their options and counter at $64,900, which was the original asking price.
We receive(verbal)confirmation the bank has accepted our offer, the property is pended and everyone is happy. We waited almost a week for the bank documents and addendums (the ones which say you’ll buy this house or we’ll keep your earnest money). Much to my surprise, I open the file and the purchase price is $77,900. Not what we agreed to.
Apparently, the bank doesn’t know how to read a counter-offer. It was relayed to me they didn’t see the checked box or our counter #2. The scroll feature must not have been working that day. They only saw my clients signature on their counter and they are sticking to their guns. $77,900.
My client says,
“I'm beginning to think they want to keep it for sentimental purposes.
Perhaps they know a good postcard artist and are planning on building a rustic bridge over the pond.”
To which I reply – I hope they do a good job, because selling postcards may be their only hope for making any money from this property. Like we need more covered bridge postcards from Indiana.
For the record, when a home sits on the market for six months and you have reduced the price once, it’s probably not a good idea to raise the price AFTER you get an offer. Cut your losses and move on.
I've been a real estate agent and broker in the Washington DC area for a while and, as amazing as your story is, I honestly can't say I'm too surprised.
The banks are just plain greedy and STUPID! I'm consistently amazed at how poorly run most banks are...
Sounds like no fun to me at all! I have done a couple short sales and I definitely earned my keep on those deals.
The only ones that I really attempt to get done are with local banks from the area so I can actually go there in person face to face otherwise I'll refer them out.
Best of luck to you! Hopefully you can avoid this nonsense in the future but with Short Sales you could write a series of novels on the stories.
that's amazing, haven't heard too much of that going on, must be a small bank who's struggling.
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