I’ve noticed lots of “banks” don’t want to cut the price either. They’re sitting there with foreclosed property wanting what’s owed on it when it won’t appraise. I guess they’re waiting for the “ultimate” bail out that’s coming from islamabama.
Dear Mr Banker:
I would like to review with you the impact on prudential lending standards that might evolve from a mortgage market in which new loans are backed with private money rather than public money.
In addition, we will also discuss whether banks that claim to earn their money by putting their own capital at risk, understand the meaning of the following words:
"capital", "risk", and "own".
The last time this happened (S&L Crisis) the banks and the government got a lot of grief for letting go of homes at fire sale prices. Opponents claimed cronyism, depressing the market for existing homes, etc. So it's a damned-if-you-do damned-if-you-don't situation.
To your point I tried to buy a "short sale property" for what I though was a realistic price The bank asked more. because of some recent sales in the area I increased my price by 15% which I thought was exceptionally generous, but the bank said Just come up another $35,000. Since I had gone over what I though was prudent (though within a statistical value range) I told them no, you had your shot at my money. My offer DROPPED by 10% I got WHAT ARE YOU DOING??? from the seller's agent (who obviously took me for an easily taken rube) There was a no sale, and now both the county appraiser and zillow have the home valued at substantially LESS than my final offer. I'm glad I didn't buy, and they pulled it off the market, willing to continue to pay for the upkeep rather than sell for a realistic price. (btw I went on to buy another house in the same neighborhood which is now running slightly above what i paid.