Buying a Bank Owned Property... frustration

MasseyWV · Mar 7, 2012

Barnone said:
Duh, that is what they are suppose to do.

Duh! Not according to the fancy advertisements many of them air. In any case, my comment was said partly in jest.

chucko · Mar 7, 2012

I bought one owned by Wells Fargo They do require it even with cash it is more to make sure they are not giving time to someone else that can't afford it. So of the people they have handling this can be asses I suggest you have your Realtor deal with them but remember they all get paid commission based on what you pay so start a lot lower than you are willing to pay..
Worked out well for my my house was worth 350k 4-5 years ago I got it last year for 120k

I started with a 50k offer. before I was done I was mad at everyone

ultrarunner · Mar 7, 2012

schoolsout said:
It's a shell game...it is why there are so many foreclosed homes still hidden from the market. They are hoping and praying that the Fed and Government can rob the taxpayers some more to help boost asset prices...

Only anecdotal...

In the last 2 weeks, I have met 5 individuals that live in homes now owned by the bank...

The reasons vary in details... most have given up trying to hold on even if they still have income.

I hear all the news stories on how things are looking better... just not seeing it where the rubber meets the road.

schoolsout · Mar 7, 2012

ultrarunner said:
Only anecdotal...

In the last 2 weeks, I have met 5 individuals that live in homes now owned by the bank...

The reasons vary in details... most have given up trying to hold on even if they still have income.

I hear all the news stories on how things are looking better... just not seeing it where the rubber meets the road.

If the banks foreclose, they really don't want to have to sit on property that is vacant where it rots away (humidity, etc) and typically dump them at what seem good prices. Problem is, when they do this, those assets they hold on their balance sheets can not be fudged any longer. It has now been marked to actual market value and not what they "think/believe" it is worth. This would decimate them. They don't like dealing with reality as, truthfully, many banks are insolvent.

News outlets are typically corporate-owned and they, along with the financial sector, have huge influence over the gov't. Gov't bails them out...they help spread the propaganda.

Sounds crude and "unthinkable," but, uh, what else can be said?

ultrarunner · Mar 7, 2012

schoolsout said:
Problem is, when they do this, those assets they hold on their balance sheets can not be fudged any longer. It has now been marked to actual market value and not what they "think/believe" it is worth. This would decimate them. They don't like dealing with reality as, truthfully, many banks are insolvent.

A typical foreclosed home here is 50% or what is owed... I've seen some go for 20% too...

Nothing wrong with them... actually, most have had upgrades done so they are better than when the bank lent the money in 2006-07.

Vacant homes are big magnets for trouble makers... chances are a residential structure fires are often vacant home with squatters... some get destroyed just for fun.

In some ways... the banks are very much part of the problem and I don't mean for making the loans...

Running fast and loose with the paperwork and certifying all was in order to take short cuts has cost them dearly and for that, they have no one to blame but themselves..

Foreclosures are nothing new... they have always existed just like tax sales...

2manyrocks · Mar 8, 2012

My Father passed several years ago, but at one point while the economy was still going strong, he told me that the banks had so many foreclosures in the Great Depression that the people just stayed in their homes because the banks didn't want so many vacant properties.

He also said that many generations of the same family used to live in the same home, and then only a few rooms were heated in the winter.

I used to wonder how so many people could afford such large homes. Now I guess they couldn't afford them after all.

My question is where all the money came from to lend them? Our local rural newspaper has foreclosure ads every week from out of state lenders I've never heard of. It's not the local banks that have the bad loans for the most part. It's lenders I've never heard of.

hawkeye08 · Mar 8, 2012

I think this new government program that "adjusts" the principle down due to the value of the home declining should also have a provision to increase the principle if the value of the home goes up.

Ultra, hoping it works out for you if you still want to purchase the property.

chucko · Mar 8, 2012

"It's not the local banks that have the bad loans for the most part. It's lenders I've never heard of."

That does not mean the local back did not give the load. Banks trade loans like stocks

2manyrocks · Mar 8, 2012

It's possible that the local banks sold some of these loans in the secondary market. It could also be that many of them came through independent mortgage brokers competing with the local banks.

riptides · Mar 8, 2012

Ugh... another horrible bank posting.

Dude! I feel for you.

I still have a few teeth left from my refi. If you know what I mean. I still cannot figure out what the right thing to do was..... I think maybe the chickens, candles and full moon got Wells Fargo on my side. I just cannot understand the banking system these days.