The bank will not give up the property

[Kevin Myhre]

Hello BP community,

I have been searching for a home to live in for a few months now. Two months ago I came across the perfect property, and REO that was located smack in the middle of my parents home and my brothers home. I got my pre-approval for a 203K loan, put together a scope of work, and an estimate from a contractor to submit to the bank. The house is listed for 250,000 so I offered 200,000 to start. The bank countered my offer with their asking price of 250,000. I then offered my top number (209,000) and the bank said they will not sell the home under asking for 6 months. Mind you, this house is maybe worth 180,000 (there are foundation issues, it's small, needs cosmetic work, etc) but unfortunately the bank paid about 350,000 to foreclose on it. My realtor, the listing agent for the bank, and myself all know this house will not sell for 250,000. Do I wait it out, do I continue to submit my 209,000 offer every couple of weeks, any advice would be very helpful! Thanks in advance.

                           KM

[Wayne Brooks]

@Kevin Myhre Do a little research. This sounds like it might have been a reverse mortgage foreclosure. If so, the bank is Not allowed to sell the property for less than 95% of a current FHA appraisal, for at least six months, in order to receive payment from FHA, which insures the loan. Usually, the list price is this number. If so, they don't care about your cost calculations, they only care about the appraisal.