This is one of the ways to buy on a bank REO that I have not tried or attempted to do. They literally hold auctions on trustee sales at the court house steps. There are many people who bid and buy this way.
Jim the Realtor has a few videos from an investor Adam who does bid and buy on a regular basis and shares his insights. According to Adam, he has successfully bid and won on 7 properties. This is very good information and I think Jim asks some great questions for anyone who has thought of trying to buy through this process.
Jim TV Adam Part 1
Jim TV Adam Part 2
Jim TV Adam Part 3
Thursday, December 31, 2009
Sunday, December 13, 2009
Bank REOs from a real estate agent's point of view
Jim the realtor has a bunch of youtube videos of bank REOs that are about to hit the court steps for auction. If you listen to him in the video, he will give you the stats like square footage, opening bid, etc. Enjoy.
Wednesday, November 25, 2009
HOAs that default or go bankrupt
When we searched for a bank REO, a concern was the home owners' association (HOA) being in default. The HOA basically covers the exterior common areas as well as security for guards. I looked this up on the internet and really couldn't find any information.
One reason why this HOA was a concern is lenders were not lending on many condo and planned communities that had HOA in default or arrears. The banks did some kind of preliminary report that showed how many condos are owner occupied vs rented as well as how many properties had notice of defaults(NODs) filed or already bank owned (REO). Most of this information is not readily available online, so you don't learn about this until after an offer is made.
We did visit some condos and master planned communities and you could physically see the maintenance wasn't being done. I just found this video and this is what inspired me to revisit this issue on HOAs.
Where did the Billions in Bank Bailouts Go? - Sand, Dirt, Fines & Ghost towns
One reason why this HOA was a concern is lenders were not lending on many condo and planned communities that had HOA in default or arrears. The banks did some kind of preliminary report that showed how many condos are owner occupied vs rented as well as how many properties had notice of defaults(NODs) filed or already bank owned (REO). Most of this information is not readily available online, so you don't learn about this until after an offer is made.
We did visit some condos and master planned communities and you could physically see the maintenance wasn't being done. I just found this video and this is what inspired me to revisit this issue on HOAs.
Where did the Billions in Bank Bailouts Go? - Sand, Dirt, Fines & Ghost towns
Tuesday, November 10, 2009
Newport Lofts in Las Vegas
During my search for my first bank REO, my wife made a special trip out to Las Vegas to check out this highrise bank REO. It was the first one owned by the bank at that time. I think the prices were in the $180,000 range for a studio on a high floor for a resale and brand new lofts at the time were still in the $300,000 range.
One day while looking at my regular real estate sites I check out, this bank REO came to market at $131,000 and I thought this is a steal. I called the real estate agent up and set up an appointment to be there in 2 days and to sign a contract after looking at it. When we arrived that day, the real estate agent told us that an offer was already made and it went to escrow. My wife and I were suspicious but also very disappointed.
This is what the condo loft looked at.
My dream loft stolen
There was a second loft that went to the bank about a month later and that also had an offer on it before we could look at it. We did look at 3 other lofts during our initial trip and thought they were great.
I look back now and think my wife and I got lucky because we found something much better in a great location. That building never sold out and the flipper who bought the condo loft wasn't able to rent it out and has it up for resale. At that time that was a crazy price. Now most of those lofts are about just above $100,000 with a few that are listed just below at $85,000. We would have probably had a paper loss of about $50,000 in one year.
Other issues that have come up are the HOAs there might increase or could possibly go bankrupt because the building looks to be less than 20% sold or occupied. I heard the actual building went back to the bank. Then I read the bank filed for bankruptcy. Anyways, sometimes blessings are in disguise.
I hope that helps you in your search.
One day while looking at my regular real estate sites I check out, this bank REO came to market at $131,000 and I thought this is a steal. I called the real estate agent up and set up an appointment to be there in 2 days and to sign a contract after looking at it. When we arrived that day, the real estate agent told us that an offer was already made and it went to escrow. My wife and I were suspicious but also very disappointed.
This is what the condo loft looked at.
My dream loft stolen
There was a second loft that went to the bank about a month later and that also had an offer on it before we could look at it. We did look at 3 other lofts during our initial trip and thought they were great.
I look back now and think my wife and I got lucky because we found something much better in a great location. That building never sold out and the flipper who bought the condo loft wasn't able to rent it out and has it up for resale. At that time that was a crazy price. Now most of those lofts are about just above $100,000 with a few that are listed just below at $85,000. We would have probably had a paper loss of about $50,000 in one year.
Other issues that have come up are the HOAs there might increase or could possibly go bankrupt because the building looks to be less than 20% sold or occupied. I heard the actual building went back to the bank. Then I read the bank filed for bankruptcy. Anyways, sometimes blessings are in disguise.
I hope that helps you in your search.
Wednesday, November 4, 2009
Where are the Bank REOs
I have always suspected the banks were withholding bank REOs for accounting purposes. I ran into this video and it makes things more clear now. Check it out with these local agents explaining why the change.
Las Vegas Real Estate Update-Where are all of the bank owned properties?
Las Vegas Real Estate Update-Where are all of the bank owned properties?
Thursday, October 15, 2009
Getting your first Bank Reo is now more competitive
The $8,000 tax credit is set to expire soon. So I think this is causing a frenzy for people to get a bank REO like yesterday. There are still a ton of bank foreclosures out there, but this is creating some high demand.
Check out the article below from someone else's personal experience in finding a Bank REO. They weren't successful in getting a bank REO and the frustration forced them to get out of the race. They decided in the end to buy a brand new home from a builder.
Lunacy in Las Vegas Housing
But back to Katie. Her Realtor, who is also an old friend, emailed Katie the following warnings before her arrival on the Vegas strip:
Check out the article below from someone else's personal experience in finding a Bank REO. They weren't successful in getting a bank REO and the frustration forced them to get out of the race. They decided in the end to buy a brand new home from a builder.
Lunacy in Las Vegas Housing
But back to Katie. Her Realtor, who is also an old friend, emailed Katie the following warnings before her arrival on the Vegas strip:
- This market is crazy and many things are just not going to make any sense.
- I can guarantee you 99.99% of the listings emailed to you will no longer be available by the time you get here.
- Properties are selling in the blink of an eye.
- Properties are getting multiple offers within a few days of being on the market, the most offers I’ve heard a house had recently was 44 offers (I know, crazy).
- This market is crazy and many things are just not going to make any sense.
- 40% of all transactions are cash purchases, which makes it harder for the buyers who are financing to get their offers accepted.
- We have 1/2 the inventory we had a year ago and 4 times as many buyers as we did a year ago.
- Chances are we will have to submit several offers to have the chance of getting 1 accepted.
- This market is crazy and many things are just not going to make any sense.
- You will probably leave not knowing if you have a house or not because banks take 2 to 3 weeks to respond, because this market is crazy… you know the rest.
I'm guessing you noted the crazy part. Katie is looking in the $150-200,000 price range. Despite the warnings, Katie was completely unprepared for what she found. In seven days, she saw 50 homes. All but one were foreclosures.
But here's the crazy part:
"We went to a home that had been on the market for one day, and the key was stolen out of the lock box. Our Realtor said immediately, 'You want this home.' She told us another Realtor had stolen the key because they wanted their client to get it. So what did my Realtor do? She broke in. And sure enough this was the home we fell in love with. It was on for $132,000 so we decided to be really aggressive and offered $160,000, plus we had government backing on our loan. Well our Realtor called that night and said, 'You're not going to get the home. They got 30 offers and half are cash offers, so the bank is not even going to look at you.' The banks just want the cash to unload these places."
Monday, October 12, 2009
My first bank REO and laminate flooring
I just came back to post another post and noticed the pictures of my laminate floors are gone of my previous blog post. I decided to repost them and hopefully I will have done a proper job this time.
The floors are excellent. I still enjoy the appearance of dark wood floors. The only thing that needs to be finished up is the molding at the base of the base boards. Once that is done the job will be complete.
On a side note, when we purchased this bank REO it did come with the appliances. All stainless steel appliances as you can see in the picture.
n
The floors are excellent. I still enjoy the appearance of dark wood floors. The only thing that needs to be finished up is the molding at the base of the base boards. Once that is done the job will be complete.
On a side note, when we purchased this bank REO it did come with the appliances. All stainless steel appliances as you can see in the picture.
n
Tuesday, September 15, 2009
Laminate floors installed
It's amazing how wood floors can make a difference in our new home. I love the way it looks and it turned out well. We purchased the laminate wood floors online and it was delivered in a pallet. I was overwhelmed when we first got it. It was 1800 pounds and they could not bring it to our floor, so I wound up opening up the pallet in the garage and carrying each box up with the help of our 4 wheel dolly. Thank goodness.
The wood laminate we used was dark striped, ac 5 rating, and the dimensions were plank size 50 23/32″ (1288.29mm) x 7 3/4″ (196.34mm) x 15/32″ (12mm) . With the flash it looks light sometimes but the color is closer to espresso or wenge.
Friday, July 10, 2009
Getting settled in our first bank reo
It's hard to believe we have been here for about a month now. The condo was actually in great condition and needed no repairs. We had a home inspection before we purchased it and I would highly recommend anyone buying any house, brand new or REO, to spend the $300 and get it done.
This home inspector could literally save you from getting into a money pit. We actually walked away from a property when the home inspection showed mold in multiple areas of another property. Trust me, that is a sign to NOT buy. Run don't walk. lol.
This home inspector could literally save you from getting into a money pit. We actually walked away from a property when the home inspection showed mold in multiple areas of another property. Trust me, that is a sign to NOT buy. Run don't walk. lol.
Wednesday, June 10, 2009
My first bank reo--SUCCESS!
It definitely has been awhile since I posted and up until recently a bit discouraging. My wife and I actually have previewed about 15 properties since the last post and made about 10 bids unsuccessfully. It seems there is a ton of other people searching for a good deal in this tough real estate market.
I think because financing is tough for bank condo REOs or nearly impossible, most buyers that we were competing against were also cash buyers. Every time we made a bid, the real estate agents kept coming back to us claiming there was a lot of interest in the same property and the bank wanted our best and highest offer. This was something new to me and frankly I think the bank was lying. More on that later.
After the many failed bids we put in, I think we were rationalizing about the things we wanted and lowering our standards. We were making more compromises in what we were searching for in a new home. One real estate agent said we should just make multiple offers on different properties simultaneously until one offer was accepted. I was hesitant at first but after a few failed bids, it seemed to be an efficient way of increasing our chances of winning.
The good thing I got to observe with the multiple bids was that I could see the bank trying to get the maximum price by creating an illusion. By that I mean I was aware some of these bank REO condos were on the market for many month with some up to 6 months with no bids. Now every single offer I made came back with the bank stating there were other bids. That seemed very strange indeed. A few came back stating they had accepted higher offers and the others just went into limbo, even though there were multiple offers.
At that point, I advised my agent to withdraw all my remaining offers that had not been accepted or rejected. I advised him that I didn't believe there were other offers on some of these properties. He was extremely offended and that seemed to end our business relationship. He may have taken it the wrong way and may have thought I was calling him a liar. That wasn't my intention, but I got the feeling he dropped the ball a few times when I was following up with my offers and secondary offers.
My wife and I regrouped. She located a property that met all our needs and wants with little compromise. With some research, I located the listing agent representing the bank. We figured he would be more diligent since he would be receiving double commissions brokered from the dual listing and selling agencies. We saw what the listing price was and asked him point blank what he felt the bank would accept based on comps and whatever factors we could not see. He gave us a ballpark figure and told him we wanted to make an all cash offer, 10 day escrow, and would provide proof of funds with the offer. In less than 24 hours, the bank countered, and we countered the counter offer and the deal was made.
We viewed the property, ordered a home inspection, and dropped off the good faith deposit the same week. We did find some problems with the property from the home inspection and asked the bank to give us credit for the repair even though this property was being sold as is. Amazingly enough, the bank accommodated our request. Escrow closed early and now my wife and I lived happily ever after.
The previous agent contacted us in regards to some of the previous properties where we withdrew our offers and mysteriously the other phantom buyers pulled out. They wanted to see if we wanted to resubmit our previous offer. We declined and when I looked at those properties online again on the MLS, they were relisted at lower amounts. I don't know it for a fact but I suspect with a high degree of certainty, there were never any other buyers. There is no way to confirm since the bank doesn't and can't disclose any information of the other parties if they did exist.
I think because financing is tough for bank condo REOs or nearly impossible, most buyers that we were competing against were also cash buyers. Every time we made a bid, the real estate agents kept coming back to us claiming there was a lot of interest in the same property and the bank wanted our best and highest offer. This was something new to me and frankly I think the bank was lying. More on that later.
After the many failed bids we put in, I think we were rationalizing about the things we wanted and lowering our standards. We were making more compromises in what we were searching for in a new home. One real estate agent said we should just make multiple offers on different properties simultaneously until one offer was accepted. I was hesitant at first but after a few failed bids, it seemed to be an efficient way of increasing our chances of winning.
The good thing I got to observe with the multiple bids was that I could see the bank trying to get the maximum price by creating an illusion. By that I mean I was aware some of these bank REO condos were on the market for many month with some up to 6 months with no bids. Now every single offer I made came back with the bank stating there were other bids. That seemed very strange indeed. A few came back stating they had accepted higher offers and the others just went into limbo, even though there were multiple offers.
At that point, I advised my agent to withdraw all my remaining offers that had not been accepted or rejected. I advised him that I didn't believe there were other offers on some of these properties. He was extremely offended and that seemed to end our business relationship. He may have taken it the wrong way and may have thought I was calling him a liar. That wasn't my intention, but I got the feeling he dropped the ball a few times when I was following up with my offers and secondary offers.
My wife and I regrouped. She located a property that met all our needs and wants with little compromise. With some research, I located the listing agent representing the bank. We figured he would be more diligent since he would be receiving double commissions brokered from the dual listing and selling agencies. We saw what the listing price was and asked him point blank what he felt the bank would accept based on comps and whatever factors we could not see. He gave us a ballpark figure and told him we wanted to make an all cash offer, 10 day escrow, and would provide proof of funds with the offer. In less than 24 hours, the bank countered, and we countered the counter offer and the deal was made.
We viewed the property, ordered a home inspection, and dropped off the good faith deposit the same week. We did find some problems with the property from the home inspection and asked the bank to give us credit for the repair even though this property was being sold as is. Amazingly enough, the bank accommodated our request. Escrow closed early and now my wife and I lived happily ever after.
The previous agent contacted us in regards to some of the previous properties where we withdrew our offers and mysteriously the other phantom buyers pulled out. They wanted to see if we wanted to resubmit our previous offer. We declined and when I looked at those properties online again on the MLS, they were relisted at lower amounts. I don't know it for a fact but I suspect with a high degree of certainty, there were never any other buyers. There is no way to confirm since the bank doesn't and can't disclose any information of the other parties if they did exist.
Tuesday, April 14, 2009
Still searching for my first bank reo
My search for my first bank reo failed. I later found out that the winning bidder of the condo I wanted to purchase at auction was bought by the city economic development agency. There was no way I was going to win that bank reo against deep government pockets.
After searching the net, the cities I would have liked to live in were still too pricey for me. Seattle and San Francisco were nice areas, but more than I could afford or want to spend. Ideally, a high rise condo would be nice. San Diego was another city I considered buying an reo. All those cities are on the water and have decent amounts of rain which is the weather I love.
So it was surprising when I found high rise condo lofts in Las Vegas that were affordable and were well designed. The first condo l liked was on the 19th floor and had beautiful views of the city. This was about November when I discovered these nice units. That particular unit was well priced at $183,000 and was snapped up before I could even see it in person. At that point, I began to watch all the units available in that building on the MLS.
About a month later, a smaller bank reo came on the market for an unbelievable price of $122,000. I drove out there to check it out and make an offer. An offer was made the day before. The trip was nice and my wife and I were able to view other units in the building. They were very nice and high quality. I fell in love with that building and its amenities.
After missing that opportunity, we saw another property for the same price but on a lower floor put on the MLS. I called my agent to put an offer in. Mysteriously, that unit had a bid put on it the day before mine. That was a sign to drop my agent which I did.
A few months passed before the first unit closed escrow where I can view on public records what the actual price sold for was. It closed at $131,000 which of course surprised me. The good news is that this property is a true comp that appraisers could use and would bring down the value of all the condos in that building.
Another unit came up on the 14th floor that we already had seen on a previous visit, but that was a short sale. I thought we would put a bid in to the lender to see how receptive they would be. The lender for this short sale was Wells Fargo. They had the list price for $184,000 but with the new comparable sale recorded, I could now justify an offer. I made an offer of $120,000 expecting to get a counter offer somewhere in the middle range of $150,000 and possibly get it down to $130,000 range.
The second unit for $122,000 that was bid on before me still hasn't closed escrow to this day. So I couldn't use that as a comp to justify my offer. The bank came bank with an offer for only $180,000. Well that wasn't going to work for me. I didn't bother making a counter to their counter offer because they seemed to be stuck at that price. I cancelled the offer and decided to move on.
Since that time, the number of units for sale have gone from about 10 to about 45 units for resale. The weird thing is the builder is still sitting on an inventory of unsold condos of about 100 units. When I first eyed that building there were only 3 condos for sale under $200,000 which were all great deals. As of today, there are about 25 condos under the $200,000 price point and now about 5 units under the $160,000 mark.
I have been watching all the high rise building and have noticed the same trend of falling prices in all the buildings as well as a swelling inventory of resales in all the buildings. They are all definitely good deals but new issues became a factor in pursuing these units.
I don't really know what happens if the HOA goes bankrupt, but I started to wonder what would happen if all these people just walked away from their properties. This is not just hypothetical but seems to becoming a reality for these condo high rise buildings. You figure the HOA is divided by the number of residents. If the foreclosures increase and no buyers buy those units, then I would imagine the HOA fees would increase for those living in the building. This is not a good ratio for the condo building I was watching.
Las Vegas Business Press:
This building was lucky that it had a partner to buy the debt. I don't know if that will be true for the other buidings in these tough economic times. Thus, my search for my first bank reo continues.
After searching the net, the cities I would have liked to live in were still too pricey for me. Seattle and San Francisco were nice areas, but more than I could afford or want to spend. Ideally, a high rise condo would be nice. San Diego was another city I considered buying an reo. All those cities are on the water and have decent amounts of rain which is the weather I love.
So it was surprising when I found high rise condo lofts in Las Vegas that were affordable and were well designed. The first condo l liked was on the 19th floor and had beautiful views of the city. This was about November when I discovered these nice units. That particular unit was well priced at $183,000 and was snapped up before I could even see it in person. At that point, I began to watch all the units available in that building on the MLS.
About a month later, a smaller bank reo came on the market for an unbelievable price of $122,000. I drove out there to check it out and make an offer. An offer was made the day before. The trip was nice and my wife and I were able to view other units in the building. They were very nice and high quality. I fell in love with that building and its amenities.
After missing that opportunity, we saw another property for the same price but on a lower floor put on the MLS. I called my agent to put an offer in. Mysteriously, that unit had a bid put on it the day before mine. That was a sign to drop my agent which I did.
A few months passed before the first unit closed escrow where I can view on public records what the actual price sold for was. It closed at $131,000 which of course surprised me. The good news is that this property is a true comp that appraisers could use and would bring down the value of all the condos in that building.
Another unit came up on the 14th floor that we already had seen on a previous visit, but that was a short sale. I thought we would put a bid in to the lender to see how receptive they would be. The lender for this short sale was Wells Fargo. They had the list price for $184,000 but with the new comparable sale recorded, I could now justify an offer. I made an offer of $120,000 expecting to get a counter offer somewhere in the middle range of $150,000 and possibly get it down to $130,000 range.
The second unit for $122,000 that was bid on before me still hasn't closed escrow to this day. So I couldn't use that as a comp to justify my offer. The bank came bank with an offer for only $180,000. Well that wasn't going to work for me. I didn't bother making a counter to their counter offer because they seemed to be stuck at that price. I cancelled the offer and decided to move on.
Since that time, the number of units for sale have gone from about 10 to about 45 units for resale. The weird thing is the builder is still sitting on an inventory of unsold condos of about 100 units. When I first eyed that building there were only 3 condos for sale under $200,000 which were all great deals. As of today, there are about 25 condos under the $200,000 price point and now about 5 units under the $160,000 mark.
I have been watching all the high rise building and have noticed the same trend of falling prices in all the buildings as well as a swelling inventory of resales in all the buildings. They are all definitely good deals but new issues became a factor in pursuing these units.
I don't really know what happens if the HOA goes bankrupt, but I started to wonder what would happen if all these people just walked away from their properties. This is not just hypothetical but seems to becoming a reality for these condo high rise buildings. You figure the HOA is divided by the number of residents. If the foreclosures increase and no buyers buy those units, then I would imagine the HOA fees would increase for those living in the building. This is not a good ratio for the condo building I was watching.
Las Vegas Business Press:
Prudential and developer Turnberry Associates remain partners in the two-tower, 640-unit complex luxury development. But the debt acquisition by Prudential makes the loanholder the controlling partner as the luxury project's developers are struggling to sell units. Prudential bought the undisclosed amount of debt from Bank of America in early March for an undisclosed price, Bank of America spokeswoman Colleen Haggerty confirmed.
The changeover mainly affects the newer west tower, which was completed last year. The 320-unit west tower has about 150 unsold units. About another 50 units remain vacant in the 320-unit east tower, which was already turned over to the condo owners, said John Riordan, Turnberry Ltd.'s senior vice president for the Western Region.
This building was lucky that it had a partner to buy the debt. I don't know if that will be true for the other buidings in these tough economic times. Thus, my search for my first bank reo continues.
Saturday, April 4, 2009
Searching for my first bank reo
My wife and I actually went to one of those foreclosure auctions which was held at the convention center. There were a few thousand people inside waiting to get a deal. Some if not most of the properties were being above its true value.
Initially, that seemed surprising but if you read the pamphlets tiny print, you will realize that the bank or its investors can bid against the real investors to prop up their prices. This is known as shill bidding and is not really fair. If the bank or quote investors really want to get a certain price, then they should simply put a reserve on the property or start at the lowest price they are willing to accept and sell the foreclosed properties at.
You can actually tell the bank was bidding too high because they would win the bid. This defeats the purpose of unloading the property. So what happens at these auctions after the bank or investor accidentally overbids? They put the same property back up for bid again multiple times which makes the whole process longer and extremely boring. It also makes people realize that these auctions are not true auctions.
Overall, the experience was not good. You pay for parking and wait for 4 or 5 hours for the properties you want to bid on. You go there looking to get a deal and ready to bid against other bidders for property you like, but don't want to be tricked by the house auctioneer. The bank or its investors have no intentions of buying the house back, yet they are allowed to bid just to try to bump up the prices. This part of the process makes them look like fraudsters or professional con men.
Initially, that seemed surprising but if you read the pamphlets tiny print, you will realize that the bank or its investors can bid against the real investors to prop up their prices. This is known as shill bidding and is not really fair. If the bank or quote investors really want to get a certain price, then they should simply put a reserve on the property or start at the lowest price they are willing to accept and sell the foreclosed properties at.
You can actually tell the bank was bidding too high because they would win the bid. This defeats the purpose of unloading the property. So what happens at these auctions after the bank or investor accidentally overbids? They put the same property back up for bid again multiple times which makes the whole process longer and extremely boring. It also makes people realize that these auctions are not true auctions.
Overall, the experience was not good. You pay for parking and wait for 4 or 5 hours for the properties you want to bid on. You go there looking to get a deal and ready to bid against other bidders for property you like, but don't want to be tricked by the house auctioneer. The bank or its investors have no intentions of buying the house back, yet they are allowed to bid just to try to bump up the prices. This part of the process makes them look like fraudsters or professional con men.
Friday, April 3, 2009
My First Bank REO
The real estate market peaked in 2005-2006 depending in what state you are living in. Since then the prices of real estate has dropped dramatically. I started looking for bank foreclosures and short sales for over a year now.
The first bank REO my wife and I liked and bid on was a condo unit we really liked. It was about 5 years old. I forget the exact amount the bank listed the condo for originally (I think it was in the $180,000 range) but our first low ball offer was for $125 ,000 and the bank countered at about $166,00. We then countered at $130,000, and they went to $163,000. I think we bumped up our bid to $140,000 and the bank gave us a final offer at $160,000 and ended the bidding process. We were willing to go up to $150,000.
I was putting 30% down payment and my loan was pre-approved at their bank choice or preferred lender. They had my bank statements and my financials so they knew we were serious. For whatever reason, the bank didn't want to deal with us anymore.
I watched or stalked that condo on the internet. Eventually, the condo went to public auction 6 months later . The price of the condo was bid up to $140,000 minus a $5,000 bid fee to the auctioneer. Is that insane the bank let it go for a lower amount?
Needless to say, we were very disappointed in not getting the condo. We had ideas of how we were going to remodel and fix the place up. We just chalked it up as a learning experience and that it wasn't meant to be.
The first bank REO my wife and I liked and bid on was a condo unit we really liked. It was about 5 years old. I forget the exact amount the bank listed the condo for originally (I think it was in the $180,000 range) but our first low ball offer was for $125 ,000 and the bank countered at about $166,00. We then countered at $130,000, and they went to $163,000. I think we bumped up our bid to $140,000 and the bank gave us a final offer at $160,000 and ended the bidding process. We were willing to go up to $150,000.
I was putting 30% down payment and my loan was pre-approved at their bank choice or preferred lender. They had my bank statements and my financials so they knew we were serious. For whatever reason, the bank didn't want to deal with us anymore.
I watched or stalked that condo on the internet. Eventually, the condo went to public auction 6 months later . The price of the condo was bid up to $140,000 minus a $5,000 bid fee to the auctioneer. Is that insane the bank let it go for a lower amount?
Needless to say, we were very disappointed in not getting the condo. We had ideas of how we were going to remodel and fix the place up. We just chalked it up as a learning experience and that it wasn't meant to be.
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