Short Sale Dilemma
I submitted a short sale packet for a property in Cedar Creek, TX, to IndyMac back in April. The comps in the area range between $150-$225k. It requires about $15k in repair (though it could probably sell in as-is condition). It's a 4 bed house that sits on 2 acres of land out in the 'country'. The note was for about $115k but the homeowners' hadn't made a payment in 18 months so there were some fees tacked on.
Despite the equity, I decided to pursue a short sale to see if I could get a further discount.
My dilemma is this: the bank accepted my initial offer for $79k in 2 months.
I mean, this has to be some sort of trick, right?
This isn't supposed to happen. Every other short sale I've performed on has taken at least 6 months and the banks return with an unreasonable offer. Then I have to go back and ask for another BPO, send out my own appaiser, have a contractor send in a bid again, etc...
Is this too good to be true? I don't know how to act.
Comments (6)
Hopefully whatever transaction lender we find will use the appraisal we ordered ;-)!
Bryan Hancock, over 14 years ago
Best comps I could find were for newer homes. Hired a professional appraiser to find out the value. He went within a 3 mile radius, finding houses of similar bed/bath, year built, and SF and came up with lower comps. This doesn't surprise me as houses built in the mid 1970's wouldn't be worth as much as houses built in the late 90's and early century. But I have a private money lender who will allow me to keep a relatively good note for up to 30 years and a buyer who will put down 20% DP and make the repairs. Still should turn out to be a profitable, if not creative, transaction.
Tom Bukacek, over 14 years ago
The comps are impossible to establish in the area. Cedar Creek is near a new high school where there are new homes mixed in with old ones. This house sites on over an acre of land and isn't surrounded by other homes at all. The closest house is way more than a stone's throw away.
Bryan Hancock, over 14 years ago
Tom, Your numbers are confusing. If you can buy for $79,000. And the comps are for $150,000 and up, why renegotiate? What did the Appraisal show?
James Ward, over 14 years ago
After getting a professional appraisal done, it appears my offer was to high. Back to renegotiating. Tough comparable for me to find as their wasn't much within 3/4 mile of the property.
Tom Bukacek, over 14 years ago
Funny Tom. It does seem that some banks now have staffed up and are moving a bit quicker. How to act? Close it, sell it, cash the check, rinse & repeat.
Ted Akers, over 14 years ago