Maxine seems to think that the bank had two offers, one for a financed borrower at $310K, and the other for cash from an investor at $214K, and they took the $214K because it was cash.
My point is that they had ONLY the $310K offer, and whether it was financed or cash, they would have received that amount at close of escrow.
They did not have a $214K offer from an investor until the moment they auctioned it off.
Sounds like they were told to dump that property fast....
I did a refi on my house and the loan was sold to Countrywide. They were bought out by Bank of America. Now, I HATE bank of America and asked what was going on.
They told me they were just servicing my mortgage and I didn't have any right to change that, as it was out of my hands. But if I were to go into foreclosure, they would be the ones I would be dealing with.
Steve, what you are not looking at is the fact that loans are bundled up and sold to investors. They are not held by the bank unless the bank is paid to service them. Rarely these days is a bank holding your mortgage.
That means that investors (in the stock market) are being much more picky about what houses they will invest in and maybe have lowered those numbers considerably.
I don't know everything about the housing industry. But I know the banks are not going to hurt themselves over foreclosures. I have enough sense to know they have a motivation for what they do.
And frankly, you being in the real estate business, should know this more than most.
Maybe, just maybe, mortgages can not be sold to investors as often as they used to be. The question is, who owns the title to that house or the loan? They are the ones who call the shots and make the deals. Maybe they don't see the wisdom of buying as many mortgages as before?
I know this....my son tried to buy a foreclosure a couple years ago and every time he made an offer, it was turned down. He found out investors were sweeping up the "choice" homes and he ended up with a three bedroom/one bath house. He wanted a three bedroom/TWO bath.
Now as an agent you know one bathroom houses sell least of all. prime resale houses usually have three bedrooms and two or more bathrooms.
Investors were buying houses for far less than the asking price, just as they are now. He was told it may take months to try and buy a short sale and then they might dump him at the last minute, to an investor or take it to auction. He just kept trying, and finally got a house that could be called a starter home. It's not bad for a single guy and he is happy.
I'd tighten my belt if I were you, because the best financial advisors say it may take ten years for a housing recovery. You may want to get a second job. Those boom years in the real estate market won't be happening again for a long time.
Does your wife work? You said your kids are grown, so she need not be home with them....lucky for you. The people hit really hard are those with young children, day care bills, shoes every four months, prom dresses.....count your blessings!