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Bank’s Incompetency = Buyer’s Gain

It is no wonder why so many banks are failing these days.  They just do not seem to comprehend what is going on in the current real estate market. Here is a perfect example.

This property just came on the market for sale in the Moonridge area of Big Bear.

Listing price is $399,900, 3 bed, office, family room, & 2.5 baths.  It needs roughly $15,000 to $25,000 in finishing details to complete it.  The property is now bank owned.

Another Bank Screw Up

A little history on this property. I had it for sale from April to August of this year, listed initially at $525,000 but reduced to $475,000 about 30 days after hitting the market.  The property was a short sale as the owner owed $605,000 on the property.

We had a legitimate offer in mid July for $450,000, 20% down and a 30 day escrow.  The bank did not even counter this offer. Their main objection to the offer was that they had an appraisal from January of this year in the upper $600,000’s.

I emailed them recent comps to show they were way off base but it was wasted effort on my part.

Now, just a couple months later, and after having to take the property back at a $605,000 price, plus the cost of foreclosing on the previous owner, they put the property back on the market yesterday for $399,900.

I am not trying to sound like I have sour grapes because I missed out on the sale.  I just don’t understand how these banks make such financial decisions.  Can someone please explain what I am missing?

This is not an isolated incident.  I have seen it numerous times in the past year.

You hear all the news today about banks working with buyers & sellers but this is a perfect example of what is actually happening.  They just do not get it.  They are going to lose at least $50,000 from what they most likely would have received 3 months ago.

If you are looking to buy a home in Big Bear, this bank’s incompetence could be your gain.

****UPDATE*** The bank eventually sold this property on 12/26/2008 for $375,000.  Like I said, the buyer’s gain.

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