Cash offers … banks slitting their own throats?

[UCGal]

[quote=AK]Just found out about another one … closed earlier this month 15K below my conventional offer, presumably all cash. Another nearby closed 10K below the very reasonable asking price, presumably all cash. Never got a chance to bid on that one … lasted about two days on market.

Three model matches (two REOs and a short sale) listed within 1/4 mile. What are the chances these will appraise at “true” market value? By that I mean what a sane owner-occupant would offer.[/quote]

I assume you mean what a “typical” owner occupant would offer. All cash offers don’t necessarily mean insanity. It just means someone is trying to take advantage of the system at hand. For all you know these buyers may have borrowed cash from friends/family/401ks etc to be able to make a cash offer for less than you would have, and intend to finance it after the fact. I don’t think you can assume they are investors or flippers. Or insane. In fact getting 10k or more off the price sounds rational to me.

[AK]

[quote=UCGal]I assume you mean what a “typical” owner occupant would offer. All cash offers don’t necessarily mean insanity. It just means someone is trying to take advantage of the system at hand. For all you know these buyers may have borrowed cash from friends/family/401ks etc to be able to make a cash offer for less than you would have, and intend to finance it after the fact. I don’t think you can assume they are investors or flippers. Or insane. In fact getting 10k or more off the price sounds rational to me.[/quote]

To put it in perspective, I’m talking about 15K off 320K, which is roughly 5 percent.

With discounts like that, I think I’m justified in questioning whether banks/servicers are making reasonable efforts to mitigate their own losses and those of MBS investors.

Either that, or I wish I had friends with 300K+ sitting around.

[AK]

[quote=UCGal]I assume you mean what a “typical” owner occupant would offer. All cash offers don’t necessarily mean insanity. It just means someone is trying to take advantage of the system at hand. For all you know these buyers may have borrowed cash from friends/family/401ks etc to be able to make a cash offer for less than you would have, and intend to finance it after the fact. I don’t think you can assume they are investors or flippers. Or insane. In fact getting 10k or more off the price sounds rational to me.[/quote]

To put it in perspective, I’m talking about 15K off 320K, which is roughly 5 percent.

With discounts like that, I think I’m justified in questioning whether banks/servicers are making reasonable efforts to mitigate their own losses and those of MBS investors.

Either that, or I wish I had friends with 300K+ sitting around.

[AK]

[quote=UCGal]I assume you mean what a “typical” owner occupant would offer. All cash offers don’t necessarily mean insanity. It just means someone is trying to take advantage of the system at hand. For all you know these buyers may have borrowed cash from friends/family/401ks etc to be able to make a cash offer for less than you would have, and intend to finance it after the fact. I don’t think you can assume they are investors or flippers. Or insane. In fact getting 10k or more off the price sounds rational to me.[/quote]

To put it in perspective, I’m talking about 15K off 320K, which is roughly 5 percent.

With discounts like that, I think I’m justified in questioning whether banks/servicers are making reasonable efforts to mitigate their own losses and those of MBS investors.

Either that, or I wish I had friends with 300K+ sitting around.

[AK]

[quote=UCGal]I assume you mean what a “typical” owner occupant would offer. All cash offers don’t necessarily mean insanity. It just means someone is trying to take advantage of the system at hand. For all you know these buyers may have borrowed cash from friends/family/401ks etc to be able to make a cash offer for less than you would have, and intend to finance it after the fact. I don’t think you can assume they are investors or flippers. Or insane. In fact getting 10k or more off the price sounds rational to me.[/quote]

To put it in perspective, I’m talking about 15K off 320K, which is roughly 5 percent.

With discounts like that, I think I’m justified in questioning whether banks/servicers are making reasonable efforts to mitigate their own losses and those of MBS investors.

Either that, or I wish I had friends with 300K+ sitting around.

[AK]

[quote=UCGal]I assume you mean what a “typical” owner occupant would offer. All cash offers don’t necessarily mean insanity. It just means someone is trying to take advantage of the system at hand. For all you know these buyers may have borrowed cash from friends/family/401ks etc to be able to make a cash offer for less than you would have, and intend to finance it after the fact. I don’t think you can assume they are investors or flippers. Or insane. In fact getting 10k or more off the price sounds rational to me.[/quote]

To put it in perspective, I’m talking about 15K off 320K, which is roughly 5 percent.

With discounts like that, I think I’m justified in questioning whether banks/servicers are making reasonable efforts to mitigate their own losses and those of MBS investors.

Either that, or I wish I had friends with 300K+ sitting around.

[moneymaker]

I’ll agree with what’s going on, I’ve seen it myself. We wanted to purchase a house. We were told they had already accepted an offer, this was back in October I believe. Well I just looked it up recently and it sold recently for $30k less than we paid for our current home, that’s about $70k less than their asking price back in October, doesn’t make sense to me. Here’s the URL from Zillow http://www.zillow.com/homedetails/2548-Washington-St-Lemon-Grove-CA-91945/17017349_zpid/ Kinda makes me wonder if agents/brokers are funneling houses to friends/relatives.

[moneymaker]

I’ll agree with what’s going on, I’ve seen it myself. We wanted to purchase a house. We were told they had already accepted an offer, this was back in October I believe. Well I just looked it up recently and it sold recently for $30k less than we paid for our current home, that’s about $70k less than their asking price back in October, doesn’t make sense to me. Here’s the URL from Zillow http://www.zillow.com/homedetails/2548-Washington-St-Lemon-Grove-CA-91945/17017349_zpid/ Kinda makes me wonder if agents/brokers are funneling houses to friends/relatives.

[moneymaker]

I’ll agree with what’s going on, I’ve seen it myself. We wanted to purchase a house. We were told they had already accepted an offer, this was back in October I believe. Well I just looked it up recently and it sold recently for $30k less than we paid for our current home, that’s about $70k less than their asking price back in October, doesn’t make sense to me. Here’s the URL from Zillow http://www.zillow.com/homedetails/2548-Washington-St-Lemon-Grove-CA-91945/17017349_zpid/ Kinda makes me wonder if agents/brokers are funneling houses to friends/relatives.

[moneymaker]

I’ll agree with what’s going on, I’ve seen it myself. We wanted to purchase a house. We were told they had already accepted an offer, this was back in October I believe. Well I just looked it up recently and it sold recently for $30k less than we paid for our current home, that’s about $70k less than their asking price back in October, doesn’t make sense to me. Here’s the URL from Zillow http://www.zillow.com/homedetails/2548-Washington-St-Lemon-Grove-CA-91945/17017349_zpid/ Kinda makes me wonder if agents/brokers are funneling houses to friends/relatives.

[moneymaker]

I’ll agree with what’s going on, I’ve seen it myself. We wanted to purchase a house. We were told they had already accepted an offer, this was back in October I believe. Well I just looked it up recently and it sold recently for $30k less than we paid for our current home, that’s about $70k less than their asking price back in October, doesn’t make sense to me. Here’s the URL from Zillow http://www.zillow.com/homedetails/2548-Washington-St-Lemon-Grove-CA-91945/17017349_zpid/ Kinda makes me wonder if agents/brokers are funneling houses to friends/relatives.

[SD Realtor]

AK if you put out the addresses we can check to see if they were all cash or not.

Threadkiller, when you put an offer on the home on Washington it was a short sale. The home was listed for 300k with Realty Headquarters. The home was being processed but it ended up going to foreclosure on 12/18/08. Now I do not see the home ever being relisted on the MLS. Yes it was purchased for 210k.

So yes this indeed could have been a situation where the home was funneled to someone from an unscrupulous agent who got the listing from an asset manager. There is no mortgage recorded on it so it was an all cash deal.

[SD Realtor]

AK if you put out the addresses we can check to see if they were all cash or not.

Threadkiller, when you put an offer on the home on Washington it was a short sale. The home was listed for 300k with Realty Headquarters. The home was being processed but it ended up going to foreclosure on 12/18/08. Now I do not see the home ever being relisted on the MLS. Yes it was purchased for 210k.

So yes this indeed could have been a situation where the home was funneled to someone from an unscrupulous agent who got the listing from an asset manager. There is no mortgage recorded on it so it was an all cash deal.

[SD Realtor]

AK if you put out the addresses we can check to see if they were all cash or not.

Threadkiller, when you put an offer on the home on Washington it was a short sale. The home was listed for 300k with Realty Headquarters. The home was being processed but it ended up going to foreclosure on 12/18/08. Now I do not see the home ever being relisted on the MLS. Yes it was purchased for 210k.

So yes this indeed could have been a situation where the home was funneled to someone from an unscrupulous agent who got the listing from an asset manager. There is no mortgage recorded on it so it was an all cash deal.

[SD Realtor]

AK if you put out the addresses we can check to see if they were all cash or not.

Threadkiller, when you put an offer on the home on Washington it was a short sale. The home was listed for 300k with Realty Headquarters. The home was being processed but it ended up going to foreclosure on 12/18/08. Now I do not see the home ever being relisted on the MLS. Yes it was purchased for 210k.

So yes this indeed could have been a situation where the home was funneled to someone from an unscrupulous agent who got the listing from an asset manager. There is no mortgage recorded on it so it was an all cash deal.

[Author]

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