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How can I convince a bank to take my offer on a foreclosed home?
My boyfriend and I have been trying to get this one home that was put on the market over a year ago! We have been the only offers on the home and put in our first offer about 2 1/2 months ago. There is a LOT of vandalism to the house, and the foundation seems to be bowing a little. These things will need a lot of work. They are asking 69,900 for it and we've offered 40,000 since it needs so much work and no one else is offering. They sat on our offer for a while and then came down to 68,900. We offered 45,000 and a down payment of 12,000. The home was supposed to go to auction, but after that offer it was taken off the auction list. It was even taken offline from the selling sites. The bank just now came back with a rejection. I'm not sure our real estate agent is working at it enough, is there anything we could do to get to the bank? The house WAS scheduled to go into auction, but because of our offer they pulled if from auction. Other houses in the area are selling for around their asking price, but do not have the vandalism and foundation damage that this house does. We are the ONLY offers on the house, no one else wants it. Tons of people have looked at it, but found that it was too much work.
Public Comments
- Stop for a moment and think about what's going on on the other side of this equation. On the other end of your offer is a bank employee who hates his job, only has motivation to work hard enough to not get fired, and doesn't really care. The bank doesn't care if they sell this house or let it sit on the market forever, as long as they get what's most profitable for them. If they think they can get more at auction, then they'll send it to auction. If they think they can get more by accepting your offer, then they'll take it. And if it doesn't hurt them to hold the house, then they'll be content to hold the house. For starters you should call the bank at least once a week, but every day is more like it. The squeaky wheel gets the grease and if you annoy that unmotivated bank employee enough with your constant phone calls, he'll be motivated to review your offer just to get you out of his hair. Plus, when you get him (or her) on the phone you can explain the damage, remind them there have been no other offers, and explain that the easiest thing the bank can do is offload this liability and take what they can get. Remind him that he'll get credit for having taken a troubled asset off the books and closed a sale. Remember, don't be rude or pushy, but be persistent.
- Patience and perseverance. When you're bottom-fishers you need lots of patience and perseverance. You are offering significantly below their asking price, and they are NOT obligated to take your low offer or even to respond to you. What is the home's appraised value? What are other neighborhood homes selling for? NOT enough info to tell whether you are unrealistically low in your offers, but your offer was certainly LOW. The bank's actions are clearly telling you that you aren't even IN the ballpark, so up your offer or try other properties. Doesn't matter whether YOU think it sensible of them or not.
- Have you considered that maybe they got another (better) offer? Or, perhaps they just decided that they are losing so much already that waiting until a better offer comes along is better than selling this one at such a loss. If you really want it, why not come up another $1,000 or $2,000. Your original offer is 57 cents on the dollar, that's why they are not taking you seriously. Either move on to another house, or counteroffer with a more reasonable offer that they might accept. Also, if your $45,000 + $12,000 downpayment is intended to mean you will pay $57,000 in total, make sure they understand that. They might have taken it to mean you want a purchase price of $45,000 and will finance $33,000 and pay $12,000 upfront. If that is the case, then sorry, they have every right to decline your offer and wait for a better one.
