So... I am so ripped off I don't even know where to start.
In addition to playing the waiting game on the Bank of America short sale that we have been in contract for since May we have decided to pursue our other options. Our realtor (the patient saint that she is) has showed us home after home. We have written several offers on bank owned homes, some of which I have blogged about. (I think?)
Did I tell you about the bank owned home that we offered 35k above list price and didn't even get a chance to offer our highest and best? Today we found out that it closed yesterday. Any guesses on what the final sales price was? Are you thinking it must have been 40, 50k above list price? Would you believe that it was a mere four thousand dollars above list?
Our offer, at thirty five thousand dollars above list (THIRTY FIVE THOUSAND ABOVE LIST) was rejected for an offer that was four thousand dollars above list. Which means the bank LOST thirty one thousand dollars on that home. Because they wanted a cash buyer. Keep in mind, the value of our offer was fairly well supported by the comps in the neighborhood.
In turn, this means that the price per square foot in that neighborhood has further decreased from the all time low of eighty dollars per square foot to seventy six dollars per square foot. I'll bet the neighbors just LOVE this. I can now see at least three more people contemplating walking away from their homes that are upside down in that neighborhood.
Asset managers, if you are reading this- you are only perpetuating the problem. This is UNBELIEVABLE. We are highly qualified buyers with full loan approval. We even have a flippin' rate lock. The only conditions on our loan are acceptable appraisal and fully executed contract. You passed us over in greed. Or short sight. Either way, you have unfortunately further contributed to the decline of the housing market by taking a cash buyer (who will fill the home with tenants no doubt). In addition- to all those asset managers out there choosing cash buyers (investors, LLC's, property flippers) all you are doing is creating another false housing market. What will happen when the prices cautiously rise and people begin to get optimistic that the housing market has taken a turn for the better and these investors begin flooding the market to unload their booty?
What stinks about this whole situation is that we would have loved to buy that house. Matter of fact, even without cash in our hand we probably could have closed our loan this week too. Sadly they didn't even give us a second thought. And here we sit, in our short term rental, watching the market pass us by. It's like when you get to one of the highest levels of Frogger. The cars are racing by too fast for you to hop out and get across. So you are stuck sitting on the side until either your timer runs out or you hop in front of a car and end up staring at the "game over" screen.
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thats nothing but pure corporate greed. the same people that caused the housing crash in the first place are trying to minimize their losses, and are just perpetuating the problem. makes me want to scream!
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