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.
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