Big Bear Bank Error Saves You $37,500!
By Joe Pecoraro
Everyone has played Monopoly, right? Remember when you got a card stating the bank had made a mistake and you received money you otherwise wouldn't have? Well this bank owned property is like a Community Card in real life....
Previous Purchase Price= $639,000
Previous Purchase Date= 9-28-06
This property was foreclosed on after being on the market for six months.
The previous distressed owner did the right thing and tried to limit his losses by listing the home and asking his Lender for a "short-sale". Now, by definition a "short-sale" is a transaction that doesn't satisfy the previous loan on the property. So this seller tried to find someone to buy his property at market value and hopefully salvage some of his credit.
Usually the Lender agrees to sell the home for less than is owed and deals with the seller later. In this case, the seller got an offer from a qualified buyer and chose not to accept it. The Lender chose not to take the offer which was around $575,000. No other offers came in and the property is now in the Banks inventory and back on the market as an REO. Now, lets get back to the bank error in your favor...
Offer on property not taken by Lender $575,000
New listing price as REO $537,500
Amount of "Bank Error" in your favor $37,500
(or more depending on negotiations)
Isn't real life monopoly a lot more fun?
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