I have been working with a cash buyer for the past 2 months. We have been looking primarily at REO and short sale properties. Both my buyer and myself were aware of the challenges facing these types of properties.
Well we found a nice home offered at $275,000. We put an offer in at $255,000 then waited for a response. We knew there were 2 lenders involved and that this would add to the process. The listing agent stayed on top of our offer and trying to work with us was able to get one of the lenders to take the offer. Needing both lenders to accept the offer, we knew this would be a challenge.
We waited almost a month for an answer. When we did hear back, the second bank wanted more comps in the area which we provided. We then waited another 2 weeks and got our answer. The bank said they would never take an offer under $265,000. My buyer being frustrated decided to walk away from the deal.
2 weeks after we walked from the deal, my auto search on MLS shows this same house with a new price of $264,000. “2 WEEKS”. What happened to “Never Take An Offer Under $265,000”. Now we all know that at this price the bank will see offers coming in much lower than ours. We could have had this deal closed and off the banks books.
This is just another example of why the banks can’t seem to get their act together and get the Foreclosure problem cleared up. I don’t care how “backed up” they are. This is a crisis and as such, they need to circle the wagons and take charge. By showing their lack of leadership, they are only prolonging this process and quite possibly making it worse.