Buying a Bank Owned Property... frustration

ultrarunner · Mar 6, 2012

My neighbor gave his home back to the bank... prices are down about 65%... ethics aside... he was paying almost 10k per month... his loan $9000 + taxes of $1500 + another $300 for insurance...

Got to thinking I should look into making an offer because the land adjoins my land on one side and my parents on the other...

Spoke with the agent handling the property for the bank... they will not except offers till the property is vacant... could be another year due to California Laws and delay tactics... then the bank needs to inspect and the property has to be marketed to owner occupied buyers only...

Each buyer must be pre-qualified with Wells Fargo in order to make an offer... the buyer doesn't have to use Wells Fargo... they must go through the application process...

I told the agent I would be willing to make an all cash offer as-is with one condition... I pay for a survey so I know the exact boundaries... there are or have been encroachment issues...

I'm thinking Banks are really not interested in selling property/closing the books... if they were... why would they require a cash offer to go through loan approval???

The former owner and current occupant has lived their almost 30 months since they stopped paying the mortgage... he had several long drawn out loan mod negotiations where he had to be so many months behind before they could initiate the process...

brin · Mar 6, 2012

That sure does not sound right to me...If you want it bad enough it might be worth it to get your atty. involved and let him handle the offer....Let Wells Fargo explain to your atty. why you have to fill out those forms...Just a thought.

rambler · Mar 6, 2012

Banks seem to be very detached from the real world, don't they? Too much or not enough govt regulation, not sure which, but don't see how we ever straighen out the ecconomy until the math starts making sense, and things like this don't make sense....

--->Paul

jonyyuma · Mar 6, 2012

I deeply regret not going down to the court house and buying my neighbors home from those steps..I could have cleared it ..

MoKelly · Mar 6, 2012

You would buy the property now even though the current resident won't be out of the property for another year?

MoKelly

ultrarunner · Mar 6, 2012

brin said:
That sure does not sound right to me...If you want it bad enough it might be worth it to get your atty. involved and let him handle the offer....Let Wells Fargo explain to your atty. why you have to fill out those forms...Just a thought.

I have only been turned down by a bank one time... and it was Wells that left me standing at the alter...

Everything was going along fine... the appraisal, income, credit... etc... 3 days before the closing, the Title Company called Wells and learned Wells will not be making the loan because the property doesn't meet underwriting requirements... the land is over 5 acres???

No where was this brought up and the appraisal clearly stated the parcel size... anyway... through my boss at the time, I was able to close with cash and save the deal... I had him paid back in 60 days...

As hard as I try... Wells keeps coming back into my life...

ultrarunner · Mar 6, 2012

MoKelly said:
You would buy the property now even though the current resident won't be out of the property for another year?

MoKelly

He is playing hardball with the bank... absolutely can't stand them.

His lawyer sent a letter saying he will move and turn the home over in good condition for a cash for keys payment... if he doesn't get it... the rules California enacted to protect renters go into effect... his tenant at the in-law has 9 months left on the lease and foreclosures do not trump tenant's rights as long as the tenant pays the rent to the bank.

MotorSeven · Mar 6, 2012

I'm sorry, I think something was in my eyes....did you write: Ten Thousand Dollars a month is his payment??

How many ac are we talking about?

blueriver · Mar 6, 2012

Mortgage foreclosure insurance ... it has to go thru the process so the lender can collect on the insurance to recap the loss and then they can sell it.... thats what I have been told.

I recently did a real estate auction for the lender ... they needed $250K the last bid was $227K they declined paid my fee's and expenses ... then I was told the foregoing by the lenders rep. It appears to be a win win for the lender.