Subject property is worth about about $115k to $125k. I know the value of this neighborhood like the back of my hand, just closed a S.S. there and done a few BPOs there.
Buyer's first offer to the bank was $100k. The mitigator counted back at $145k and said that's the investors lowest net they would accept(sounds like BS).
The house won't even appraise for $145k.
Buyer countered offered at $120k and I submited 3 listings / 3 solds in a CMA for plus MLS sheets to Dispute the value they got back.
The mitigator e-mailed me back with this.
"I appreciate your time. However, I have already countered you with the investors best/lowest acceptable net offer. If this cannot be arranged with the current buyer than let me know because we will need to close this file and find a new buyer."
I won't find another buyer at $145k or can even get a loan processed at this inflated price.
What can I do at this point??
I don't want to close this file and start over just because the mitigator is being hard headed and probably didn't even look at the comparables.
I've thought about contacting her manager and showing her the CMA. Would that be a good idea?
Any suggestions would be greatly appreciated!
Thanks.
Tags:
Who is the investor? Find that out and escalate to the investor. Also, become good friend with Ben Benita on this site and read what he says about escalating to the investor!! Don't give up because of the stall tactics and the bully mentality of this negotiator!
I agree with Joe B - your best bet is to get an appraisal done to demonstrate it won't appraise out at the price they are wanting. If they still don't move, this house is going to auction.
My opinion -
The investor (who is really driving the bus here) probably took out a MI policy or is using a credit default swap (CDS) to insure their investment. They decided a while back that this was a risky loan, bundled it up with other loans and took out a little insurance which kicks in if they foreclose. They made payments on the MI policy or on the CDS ... basically betting that this house was going to foreclose.
Now they have given you a ridiculous net figure. The investor has essentially said to Bank of America, "get this much or foreclose." If they foreclose, they buy it back at auction, put it in REO inventory, sell it for what it's really worth months later (perhaps for $90,000) and cash in on their policy. They get made whole (or maybe even make money). I have read that a CDSs can be "stacked" on a property -- the investor could place more than one bet that the loan will go south. A CDS is lightly regulated and there are virtually no reporting requirements on them.
That's what I think anyway every time I see these ridiculous counter-offers. It happens far too often for it to be a dumb mistake. They're not that dumb. If they were eating the loss on each of these properties, they'd do the short sale. The fact that they're coming up with these off-the-wall high values tells me they're making up for it on the other side somehow.
Am I wrong?
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