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Started By
Message
re: Buying a "flipped" house
Posted on 12/12/14 at 9:13 am to notiger1997
Posted on 12/12/14 at 9:13 am to notiger1997
quote:Don't make a dick comment if you are not even going to read his post.
notiger1997
0
Posted on 12/12/14 at 9:56 am to MSU5
You need to tell your agent to GTFO - there is no way in hell the seller is going to pay him/her a dime and you shouldn't either.
Posted on 12/12/14 at 10:02 am to MSU5
There are several things about this story that puzzle me. First, why didn't the mortgage holder show up for the auction and protect its asset unless the amount owed on the mortgage was less than $265K? If the balance on the mortgage was less than $265K why didn't the homeowner sell before foreclosure if the appraised value was $400K, and wouldn't the mortgage holder cooperate with the homeowner given the sale contract? Couldn't the OP claim damages for negligence by his real estate agent for any costs to acquire the home in excess of the $365K contract price? Someone, maybe more than one, screwed up badly.
Posted on 12/12/14 at 10:09 am to Poodlebrain
quote:
Someone, maybe more than one, screwed up badly.
I don't like to make accusations without knowing the full story, but yeah.
Foreclosures don't just up and happen - there is a pretty long time line. At the time the offer was made, I would imagine the foreclosure date had already been scheduled, so it would take extra effort from the agent to get the deal done.
I think the OP's buying agent sucks - this is why I HATE the whole idea of signing a contract with a buyers agent. It sure looks like the inability of the buyers agent to do his/her job cost the OP (and the bank) some money.
If the bank knew of a solid offer a week before the foreclosure date, I would think the bank would immediately halt the foreclosure sale to investigate the offer. Again, it might have taken a lot of hoops to jump through for the buyer agent - especially if the selling agent didn't care anymore - but it could be done.
Posted on 12/12/14 at 10:18 am to LSUFanHouston
quote:
I don't like to make accusations without knowing the full story, but yeah.
Foreclosures don't just up and happen - there is a pretty long time line. At the time the offer was made, I would imagine the foreclosure date had already been scheduled, so it would take extra effort from the agent to get the deal done.
I think the OP's buying agent sucks - this is why I HATE the whole idea of signing a contract with a buyers agent. It sure looks like the inability of the buyers agent to do his/her job cost the OP (and the bank) some money.
If the bank knew of a solid offer a week before the foreclosure date, I would think the bank would immediately halt the foreclosure sale to investigate the offer. Again, it might have taken a lot of hoops to jump through for the buyer agent - especially if the selling agent didn't care anymore - but it could be done.
This is exactly right.
Poddlebrain is right too. If the bank bid their mortgage amount they would have gladly sold it for more a week before.
I think I would walk away from this deal.
Regardless of what the appraisal says I would be very suspect of the value of this house. There is no discount in an appraisal for "ugly design" or "wrong color". I don't buy a house with a $270K mortgage and was worth $400 went to sheriff sale. So the $400K is very suspect.
This post was edited on 12/12/14 at 10:19 am
Posted on 12/12/14 at 10:18 am to Poodlebrain
quote:
Couldn't the OP claim damages for negligence by his real estate agent for any costs to acquire the home in excess of the $365K contract price
quote:
There are several things about this story that puzzle me. First, why didn't the mortgage holder show up for the auction and protect its asset unless the amount owed on the mortgage was less than $265K? If the balance on the mortgage was less than $265K why didn't the homeowner sell before foreclosure if the appraised value was $400K, and wouldn't the mortgage holder cooperate with the homeowner given the sale contract?
Here, your train of thought is on the correct path in my opinion.
Posted on 12/12/14 at 10:28 am to MoreOrLes
I have purchased houses at auction that were under contract for much more than my winning bid. I think sometimes, they (bank) are tired of the whole mess and want to get the bad loan off the books. What's to say that the contract would ever close?
I have had banks approach me before an auction to open the bidding. They did not want the house and were calculating holding costs/fixup/realtor fees, etc. They were willing to discount.
Other times, I have seen the bank bid huge amounts over the appraisal. Then see the house listed on the MLS for less than they bid at auction. I suspect in these cases, there were some government guarantees and they were not worried about loses.
Hey, I'm giving away some of my 30 years of my foreclosure experience! Go take a seminar...LOL
I have had banks approach me before an auction to open the bidding. They did not want the house and were calculating holding costs/fixup/realtor fees, etc. They were willing to discount.
Other times, I have seen the bank bid huge amounts over the appraisal. Then see the house listed on the MLS for less than they bid at auction. I suspect in these cases, there were some government guarantees and they were not worried about loses.
Hey, I'm giving away some of my 30 years of my foreclosure experience! Go take a seminar...LOL
Posted on 12/12/14 at 10:33 am to ItzMe1972
Oh, and someone asked why the homeowner didn't sell before the auction......
~Was living rent free for a period of time and wanted to continue...foreclosures are postponed.
~Under financial duress and ALL logic is out the window.
When going to tell people there house has sold and I'm the new owner....
"Oh, was that today?"
or...
"Oh boy, my husband is not going to be happy. He's offshore and thinks I've been paying the bills."
~Was living rent free for a period of time and wanted to continue...foreclosures are postponed.
~Under financial duress and ALL logic is out the window.
When going to tell people there house has sold and I'm the new owner....
"Oh, was that today?"
or...
"Oh boy, my husband is not going to be happy. He's offshore and thinks I've been paying the bills."
Posted on 12/12/14 at 11:12 am to MSU5
So this guy is wanting to make $90k off the house in 24 hours without having to do any work flipping it?
Posted on 12/12/14 at 11:30 am to MoreOrLes
If the OP ended up purchasing the home and his total cost was more than the $365K contract price could a reasonable person determine those additional cost were in whole, or in part, due to negligence by the real estate agent? I know I'd be using the threat of a law suit to renegotiate my deal with the real estate agent to limit my purchase cost, home price plus closing costs and commissions, to the $365K I had a contract for.
Posted on 12/12/14 at 1:17 pm to ItzMe1972
quote:
"Oh boy, my husband is not going to be happy. He's offshore and thinks I've been paying the bills."
Posted on 12/12/14 at 1:54 pm to ItzMe1972
The bank has no obligation to honor a sales contract entered into by the owner of the house.
There were several avenues to get this house before the foreclosure. I suspect the buyer at the auction had covered all of those.
There were several avenues to get this house before the foreclosure. I suspect the buyer at the auction had covered all of those.
Posted on 12/12/14 at 2:17 pm to I B Freeman
quote:
The bank has no obligation to honor a sales contract entered into by the owner of the house.
Indeed, but it is pretty stupid for them not to, unless they are being 100 percent protected against the loss (which does in some cases happen).
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