Tuesday, February 16, 2010

Not so Fast There ...

... buster. It turns out that our offer on this farm, which we were assured by the listing agent was adequate to get the place, and which the seller accepted, was too low for the seller's bank. Due to a miss-communication between that bank and the seller, our offer was only enough to cover 95 percent of what the seller owes the bank. The difference is the back interest resulting from 6 months of non-payments. What we have heard is that after moving out of the place, the seller rented it for 5 months AND THE RENTERS NEVER PAID. Hence the bank didn't get paid and now they want their money. In effect, they want us to make good on those 5 months of freeloading renters. Sorry, not interested.

On the other hand, don't you think that in today's economy the bank would be happy to get 95 percent of what they are owed? But that would make too much sense. Instead, we loose the farm, the seller will be forced into bankruptcy, the bank will foreclose, the house will sit empty for months while the process happens and eventually the bank will have to sell the house at a loss of 40 to 50 percent. We live in strange times. Does this sound like bank-suicide? It does to me.


  1. Crazy! Sorry to hear, that must be disappointing news. These are definitely strange times, I've seen several instances where I don't know what to make of the behavior from a bank-squirrely.

  2. I met with the realtor and talked to the bank (BoA) today. Turns out they have a new process for dealing with short sales. All the seller has to do is get on a computer and fill our lots of forms and the bank can make a decision about a short sale. Hopefully, they'll make a sensible decision. So under the best of conditions, we could see a settlement in 60-90 days. So I have withdrawn our move to stop the sale on a technicality (non-acceptance of the inspection report). We know what is wrong with the place and we know it can be corrected for a few $K. let's see, 90 days would be June 1. We may get some garden in this year. Of course, we have to do a lot of work to the house to get it rentable.

  3. Short sales are typically for less than the bank is owed on a property -- like 85% of what is owed. So your next offer, which you'll be making to the bank, not to the seller, shouldnt be for what is owed. I'd shave it 10% and offer that. Payment for your aggravation.

    it is absolutely a buyers market in snohomish county right now. I've been looking for a house closer to the farm than my current place in downtown seattle, and there are hundreds of them. The one i looked at yesterday sold in 2005 for $459k. Sold again in 2008 for $320k. Sold again in 2009 for 226k. on the market right now for $210k.