Registered: 1458232081 Posts: 1
Reply with quote #1
Hello All , Thank you in advance for responses.
OK so here is the deal. We live in Connecticut. We were purchasing a short sale property from a friend who was loosing there home. When we got the house under contract we had to have approval from the bank on the final sales price. We had originally had the house under contract at $120,000 (List Price 150,000). The offers were being handled and presented to the bank through a short sale negotiator. The bank then said we want $180,000.00 and that value was based on there recent appraisal that was done during the sellers original loan modification. (1 month prior) so then I presented a new sales contract and it was accepted from the seller at a price of $150,000.00 (Original List Price). I felt that the property was in very poor condition and I wasn't sure if the appraisal had taken into consideration that there was no septic system and no windows in the whole house that open or close. With that in mind was the reason for my reduced offer (below the 180,000 the bank was saying they wanted) . So after a few days of the bank (Rushmore Lending) reviewing the offer. We got a response with no counter offer and a note saying that the bank will not be excepting any more offers and were going to move to a Deed in Liu and foreclose on the property. I then countered again at the full asking price of the house that they originally wanted ($180,000) and would pay all closing cost and also had the commission on the realtors cut to 4%. They (the bank) again said they will not except any more offers and unless we wanted to pay the balance on the loan of $430,000 then we could have it. Where I am confused is why would they all the sudden take this stance on not selling the house (when they previously agreed to a short sale) . The Seller (homeowner) has not agreed to the deed in lue and wants to move forward with the short sale. Is there any legal recourse or other options to force the short sale again. Rushmore Mortgage Purchased this loan from Bank of America. I am totally lost on how to get this deal to come back together. Any incite would be helpful to why a bank would do this, Are they collecting insurance on the loan?? It was a FHA loan originally. If you google Rushmore Mortgage there is literally 1000s of complaints on this company doing similar things. Any help would be great. Thank You - Michael
Registered: 1388857195 Posts: 7
Reply with quote #2
I think it is about insurance. I think that they need to get the title the first time, and present it to the insurance company, and then they sell it themselves. I've been reading about this, and it's hard to find good information, because the borrower pays for the policy, but is not the beneficiary of the policy. And, it seems like there might be more than one policy. once they finally screw the insurance company out of whatever they can get, they sell what is left. But, probably if they clued you all in it would be some sort of fraud, right? And, then, you still have to bid on the house after it's been sold back to them.
I always check out Deeper Pockets (?) Bigger Pockets?...it's a website for investors who buy reo property. I try to figure out what makes them tick. Check out what happens in your state. Maybe you can get some perspective from their point of view.