Sunday, March 28, 2010

The rest of the story

The recent rains have ushered spring into my front yard with these wildflowers..

I promised an interesting update on a failed short sale that I detailed in my March 4 post, "One step forward, two steps back" . Here is my description from that earlier post;

Another short sale fell apart this week when the bank (Wachovia) returned a "must-have" net higher than their year-ago number. This particular property was first listed in the MLS as a short sale in January 2009 for $119,000. After no showings for two months the price was dropped to $99,000 and an offer of $99,000 was received and submitted to the bank. Two and a half months later the bank returned with a price of $124,000. That buyer went away and the MLS price was raised to the approved price, $124,000. Five months later a bank representative called the listing office to ask what needed to be done to move the property. The listing broker suggested a price drop to put it back in line with the comps. Price was dropped to $99,000 but it received no action and, with the bank rep's blessing, the price was dropped again to $89,000. A full asking price offer was received and submitted with expectations of fast approval. Response was faster this time with the geniuses at Wachovia responding four weeks later with a must-have net of $117,000 which would mean a selling price of over $130,000 to pay off the back taxes, condo assessments and closing costs.
And now for the rest of the story. The buyer, of course, walked away at the bank's "must-have" price. The unit went to foreclosure the following week and Wachovia sold the unit to an investor, having just one week earlier turned down $89,000 cash. To add irony to incompetence, the investor immediately sold the unit to the original buyer for the rejected $89,000, obviously at a profit. The buyer winds up with a good property at a good price, the investor makes a quick, easy profit and Wachovia throws an eight inch stack of new $20 bills out the window. That, ladies and gentlemen, is a glimpse into the madness that prevails in short sales these days.

"Welcome to my nightmare. I think you're going to like it. There'll be some more when you come down."
____Alice Cooper