$67K from the sky

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Submitted by jimmyle on June 5, 2009 - 8:35am

My uncle offered a house in a nice neighborhood of Santa Ana for $407K and the bank accepted the offer. He is borrowing from Bank of America and its appraisal of the house is only at $340K. To my uncle's amazement, the bank selling the house accepted the lower the price at $340K.

What happened was Bank of America compared this house to houses nearby but this house and neighborhood is much better than other comparable homes in Santa Ana.

Maybe his offer is a little bit too high because his wife is tired of shopping around but may be the banks know what is coming this summer and just want to dump the house?

‹ WAMU 3.5 million dollar loan at 1.75% 40 year Fixed Know someone whose mortgage is resetting? ›
Wasn't there a thread earlier
Submitted by tom on June 5, 2009 - 9:22am.

Wasn't there a thread earlier this week about doing this on purpose? Outbid everyone, and take the gamble the appraisal comes back low and the bank would rather deal with you than start over with someone else.

... given the craziness (I just saw a property on the market, and by day 3 there were 40 offers).. sure is tempting ;)

There were over 20 offers for
Submitted by jimmyle on June 5, 2009 - 9:25am.

There were over 20 offers for this property too. It was listed for $340K. Initially he offered $380K but the bank told him to offer again. He didn't want to give a higher offer but the wife loves the house and is tired of house shopping so she made him to raise the offer to $407K.

So the bank probably knew the
Submitted by AN on June 5, 2009 - 9:40am.

So the bank probably knew the appraised value before they list it. You uncle/aunt just got lucky and not over pay. The $ didn't come from the sky, it never left their pocket. That's how I'd look at it. I guess if one really love the house, this would be the strategy to employ then. Be the highest bidder and let the appraiser decide the final selling price.

AN wrote:So the bank probably
Submitted by PadreBrian on June 5, 2009 - 10:02am.

AN wrote:
So the bank probably knew the appraised value before they list it. You uncle/aunt just got lucky and not over pay. The $ didn't come from the sky, it never left their pocket. That's how I'd look at it. I guess if one really love the house, this would be the strategy to employ then. Be the highest bidder and let the appraiser decide the final selling price.

yep, we have been talking about strategy for a few months now.

jimmyle wrote:My uncle
Submitted by ralphfurley on June 5, 2009 - 10:16am.

jimmyle wrote:
My uncle offered a house in a nice neighborhood of Santa Ana for $407K...

There's a nice neighborhood in Santa Ana? What side of the city?

So,it means that banks are
Submitted by dd123 on June 5, 2009 - 10:43am.

So,it means that banks are going crazy with all these and other loan modifications program!!

LOL, it is all relative. It
Submitted by jimmyle on June 5, 2009 - 11:40am.

LOL, it is all relative.

It is near Segerstrom and Bear in Santa Ana, near Southcoast Plaza.

Example, another listing in the same neighborhood.
http://www.redfin.com/CA/Santa-Ana/2621-...

ralphfurley wrote:
jimmyle wrote:
My uncle offered a house in a nice neighborhood of Santa Ana for $407K...

There's a nice neighborhood in Santa Ana? What side of the city?

I can assure you that my
Submitted by jimmyle on June 5, 2009 - 11:19am.

I can assure you that my uncle/aunt were ready to pay $407K. They are first time buyers and weren't thinking or hoping for a low appraisal. They didn't know that is even possible since they kinda new to this country.