Here is situation:
Seller owes $65k on rental property. This is in the inner city where values have dropped astronomically(compared to rest of Indianapolis). Home is now worth about $10k-$15kish. I listed last fall. I know I am not going to make any money on this, but wanted to help this home owner out. Got an offer in January for $12k, bank countered at $14k. Refused to come down to 12k to get deal done. Bank kicked out file. 8 months later and 30 showings later a buyer agent presents a $12,500 offer. I figured with length of time on market, etc. that they would be reducing their required net on this property. NOPE, new negotiator states they now need $15,500 based on new BPO. I tell them buyer will not come up, negotiator just says sorry and kicks out file. So bank is out 7-8k over lost payments the past 9 months and raises their net required? I almost feel that Wells Fargo pays their negotiator per file closed, whether it actually takes the property off the books or not? Unreal. I don't know what I am going to do with this property.
Think I should push higher up on this?
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Replies
What's the story on the new BPO? Has there been an increase in value due to high investor activity and rehab sales? Inner city? .05 miles? Do you see the increased value? Yes, I pick my battles wisely, however if your numbers are there, someone needs to be accountable for the difference and 2 kicked out contracts. We're on the front lines for the home owner. I've argued BPOs and found that the updated valuation used withdrawn or expired overpriced comps, not sold, active or pending. You can always investigage further on behalf of your client, not to prove a point. I'm sure it won't be misunderstood.
Good luck!