My Problem...

[Lafi S.]

Hey guys, I have run into a problem I have never been through on this SS and I was wondering if any body has any advice on what I can do.

Heres the story:

I started the short about 4 months ago. Property is a two family and needs some cosmetic repairs but nothing major. I made my offer at around $275,000. Comps told me I could resell for $345,000 give or take.

Now I always order and independent BPO and it came around $330,000. The bank then ordered their own BPO, which surprisingly came in at $325,000! An end buyer made an offer at $340,000 so everything seemed like it was panning out for me on this deal.

I countered their 325 to 300,000 and then....they said they want $400,000!!!

The underwriter said variance came back at $400,000 and they will not accept anything less than that, he then closed the file out. After doing some diggin it turns out their "variance" states that this property is a 3 Family because of a third kitchen (A past tenant was illegally renting the basement and put a kitchen in their)

Without losing my cool I gathered as much information as possible...tax records, listing history, pictures of 2 separate electric outlets, boilers etc..I also brought my offer up about $5,000. But they were not budging. I delayed the Sheriff Sale twice already and the final one is on December 5th. At this point I have increased my offers to as high as I could where there is virtually no profit. But I honestly dont't care. I want to get to the bottom of this, the seller should not be foreclosing and losing his home over something like this.

I mean isn't what they are doing illegal? They are basing their asking price on false information. Information which was PROVEN to be FALSE. And what exactly is "variance"?? Their own BPO already stated that $325,000 is the FMV. They cannot justify $400,000.

Any suggestions or advice would be helpful....

Lafi A. Siyam