Bank is Going Cuckoo for COCOA PUFFs - A True Shortsale Joke

[Henry M.]

Ok, So I rarely post anything if ever, but I thought this situation warranted it.

I sent letters to homes up for auction (monthly/bi-monthly) and received a call from a woman who was in distress crying. She called me on a Friday evening (In September 2013) and her auction date was set for that following Tuesday.

I gave her options and she chose to file a TRO which stopped the auction of her home the morning of.

Make a long story short.

The property ARV is between $110-$115.

The Tax appraisal is $90K

It's current FMV condition roughly $30K (polled among a dozen professionals in person).

She owed $68K on her note.

It would cost roughly $30K to rehab and renovate (+/- $5K).

After successful completion of shortsale application (which is tedious and requires full cooperation of seller/owner) seven plus months later... The bank decides in the 11th hour to list it instead on the MLS for what she owes for at least 90 days..

I initially heard the BPO supported my assessment of $30 but later learned it actually came in at a whopping $85K.

Yes, you read that correct folks, $85K.

After I picked myself up from the floor from laughing so hard, I decided to wait it out until the 90 days are up. We are trying to renegotiate with the bank still but feel the Broker who appraised this home at an outrageous price has ulterior motives. Of course, that is just a guess but we'll see how this saga continues.

As for the homeowner, she loves me and everything I have done for her thus far and is too baffled at how the bank is handling the process.

Maybe they bulk it with other homes and sell it as a package, maybe they are genuinely in the dark, maybe they are not the sharpest tools in the shed, maybe the broker wants the property for himself... Nevertheless, I find myself more and more in these situations in shortsales since the bailouts.

I have been successful in the past. However, trust me, I hate shortsales. Unfortunately, at times they are a necessary evil.

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Am I the only one experiencing such incompetence or actions when dealing with Shortsales?

What say you?

Big Henry

Just a few snap shots (out of 60) of property:

[Wayne Brooks]

Henry, I understand that other investors may agree it's worth $30k from a "deal" point of view, but your own numbers $115 ARV and $30k rehab, put it's current value at about, yes you guessed it, $85k....without any profit/flip potential of course. Yes, I know this would require a cash buyer willing to buy and renovate, and be in at FMV.