Put a bid on a house...

[Twistedrx7]

So at the begining of december or so me and the girlfriend put a bid in on a house in patalaska. We put a cash bid in and somehow we got denied the next day. The House was still active and we were told they accepted another offer. The house was only on the market for 2 or 3 days before it sold.

 

Jump forward to now. I go to look up the house a couple times on the auditor site yet it wasnt updated. Today i look it up and see that it sold for not only lower than our cash offer but 9 grand lower than their asking price. Yet we bid 5k over the asking price. Not to mention the other party had a loan and was not offering cash.

 

How did this happen.

[Guest Hal]

They are scared of Bass?

[HotCarl]

They knew you were buying a house with your gf and decided to save you from the biggest mistake of your life?

 

just shootin in the dark here...

[LJ]

They could have known the buyer.

 

They had already signed back an offer.

 

Those are the 2 most likely reasons

[Mojoe]

Loan with a girlfriend is probably it. If you each make the $ to cover the house on your own, than maybe I'm wrong. Try could qualify you now and it works with the numbers. Your risk level is through the roof though. It's a Breyer investment for them to sell for less to someone who can cover it on their own or a married couple. Shitty deal, but you are subject to the statistics of others like you who have faulted on a loan.

[evan9381]

+1 on buying a house with your g/f being a shitttttty idea. when i bought my house my g/f thought she was going to get on the loan...haha. WRONG. i told her it was because her credit sucked and i wasnt going to take a higher rate to put her on it...

 

it was funny too because she had said something a while back to the effect of "if you refinance the house if my credit is good enough, you can put me on it". this was in front of a few people and i just looked at her like "uh...the loan is at 5%. i will probably never go low enough past that that a refi will be worth it to me, so, no"

 

my brother is looking for houses with his finace of 2 months now. i told him wait until hes married. buy it in your name, let her help pay the bills, so if the SHTF, its one less thing you have to worry about then going through splitting up everything with a house with your ex girlfriend.

[Twistedrx7]

Loan with a girlfriend is probably it. If you each make the $ to cover the house on your own, than maybe I'm wrong. Try could qualify you now and it works with the numbers. Your risk level is through the roof though. It's a Breyer investment for them to sell for less to someone who can cover it on their own or a married couple. Shitty deal, but you are subject to the statistics of others like you who have faulted on a loan.

 

I said our offer was cash. Not a loan. the other people had a loan.

 

it was a foreclosure that went to auction and bought by another bank for almost 1/3 of the price it was bought for originally.

 

The listing was still active and our Realtor said no bids had been put in yet.

[LJ]

I said our offer was cash. Not a loan. the other people had a loan.

 

it was a foreclosure that went to auction and bought by another bank for almost 1/3 of the price it was bought for originally.

 

The listing was still active and our Realtor said no bids had been put in yet.

 

Most likely they had already signed an offer back to the other buyer who had a certain amount of time to reply and they honored it per their rules.

[Twistedrx7]

Most likely they had already signed an offer back to the other buyer who had a certain amount of time to reply and they honored it per their rules.

 

fuck them take the other 14k and take our bid.

[mrs.cos]

Wait..

WHO denied you? The Bank or the People you were looking to buy from?

 

We put a cash bid in and somehow we got denied the next day.

[Twistedrx7]

Wait..

WHO denied you? The Bank or the People you were looking to buy from?

 

The bank who owns the house. they rejected the offer.

[mrs.cos]

The bank who owns the house. they rejected the offer.

 

So you had FULL cash in hand for the house? and they turned that down? Or were you pre-approved for that amount?

Im sorry, im not trying to be dense, just get the spectrum of what happened.

 

 

I dont FULLY agree about the girlfriend/Boyfriend thing, but i do think the house should be considered either YOURS or HERS.. not both. Hubby and I bought our house when we were dating but it was clear the house was HIS.. (until we got married)

[Nitrousbird]

fuck them take the other 14k and take our bid.

 

You can't do that when you have a legally binding contract.

 

This is why with a forclosed home, you need to have your bid in THE FIRST DAY they will take bids. Most of these banks will take bids for one day; they come back to all the bidders asking for a best and final, and pick the best one. If you don't get in on the first day of accepting bids, you are SOL.

[Mojoe]

I said our offer was cash. Not a loan. the other people had a loan.

 

it was a foreclosure that went to auction and bought by another bank for almost 1/3 of the price it was bought for originally.

 

The listing was still active and our Realtor said no bids had been put in yet.

 

It would appear my head was up my ass at the fine hour of the evening I replied.

[Twistedrx7]

You can't do that when you have a legally binding contract.

 

This is why with a forclosed home, you need to have your bid in THE FIRST DAY they will take bids. Most of these banks will take bids for one day; they come back to all the bidders asking for a best and final, and pick the best one. If you don't get in on the first day of accepting bids, you are SOL.

 

This was not a foreclosure sale. It was a sale by the bank. Not the bank that foreclosed on the people already.

 

Events - model home is bought by investor - investor cant keep paying for house - house goes into foreclosure - House is bought at sheriff auction by a bank - Bank puts house up for sale.

[Twistedrx7]

So you had FULL cash in hand for the house? and they turned that down? Or were you pre-approved for that amount?

Im sorry, im not trying to be dense, just get the spectrum of what happened.

 

 

I dont FULLY agree about the girlfriend/Boyfriend thing, but i do think the house should be considered either YOURS or HERS.. not both. Hubby and I bought our house when we were dating but it was clear the house was HIS.. (until we got married)

 

 

Cash in full

[mrs.cos]

thats crazy.. I cant believe they would turn down a sure thing.

[excell]

It's more cost effective for the bank to:

 

1) Take a further loss on the house, because it's a tax write off. Losses are the in thing right now.

2) Cash paid now at the end of the year is cash on their books they have to pay taxes on. It's extremely common for a business to reduce their cash at the end of year.

 

These are exacerbated if the new buyers got their loan through the same bank. Not only do both of these apply, but they got rid of other cash for tax savings by making the loan and they'll make money on the interest for the loan.

 

In the end, it's much more cost effective for the bank to sell lower to a buyer with a loan especially at the end of the year unless they're dying to raise cash.

[HotCarl]

It's more cost effective for the bank to:

 

1) Take a further loss on the house, because it's a tax write off. Losses are the in thing right now.

2) Cash paid now at the end of the year is cash on their books they have to pay taxes on. It's extremely common for a business to reduce their cash at the end of year.

 

These are exacerbated if the new buyers got their loan through the same bank. Not only do both of these apply, but they got rid of other cash for tax savings by making the loan and they'll make money on the interest for the loan.

 

In the end, it's much more cost effective for the bank to sell lower to a buyer with a loan especially at the end of the year unless they're dying to raise cash.

 

THIS. If the new buyer is financing the house via the same bank the bank stands to benefit more than your cash offer. Just a thought though.

[LJ]

You guys are confused by something here. If I get a loan from Huntington and buy a house from 5/3, Huntington writes 5/3 a check for the full sale amount.

 

If I pay cash for a house from 5/3, I write 5/3 a check for the full amount.

 

On the seller's end there is no difference. It's the lien holder who takes the risk, not the seller so saying things like

 

2) Cash paid now at the end of the year is cash on their books they have to pay taxes on. It's extremely common for a business to reduce their cash at the end of year.

 

and

 

thats crazy.. I cant believe they would turn down a sure thing.

 

are 100% incorrect unless the buyer was looking to finance through the selling bank.

[Nitrousbird]

This was not a foreclosure sale. It was a sale by the bank. Not the bank that foreclosed on the people already.

 

Events - model home is bought by investor - investor cant keep paying for house - house goes into foreclosure - House is bought at sheriff auction by a bank - Bank puts house up for sale.

Many forclosed houses are not sold by the bank the loan foreclosed on. It's bank owned = forclosed home. Fill in "bank owned" for "foreclosed" on everything I said if that makes you more comfortable to read, but everything still applys the same way.

[LJ]

Many forclosed houses are not sold by the bank the loan foreclosed on. It's bank owned = forclosed home. Fill in "bank owned" for "foreclosed" on everything I said if that makes you more comfortable to read, but everything still applys the same way.

 

No it doesn't. A bank can sell a foreclosure however they want. They can do a bidding process or they can sell it like a regular listing. It sounds like this house was bought by a 2nd bank who put it up for sale like a regular listing after buying it through a a bidding process.

[excell]

You guys are confused by something here. If I get a loan from Huntington and buy a house from 5/3, Huntington writes 5/3 a check for the full sale amount.

 

If I pay cash for a house from 5/3, I write 5/3 a check for the full amount.

 

A loan has origination and processing time, I promise you the money won't exchange banks until after 1.1.10 for the reasons I mentioned.

[LJ]

A loan has origination and processing time, I promise you the money won't exchange banks until after 1.1.10 for the reasons I mentioned.

 

No shit, closing is an industry "standard" of 30 days. You bring the cash to closing though, that is what closing is. If you closing is 12/30, the check exchanges hands that day. If you went into contract today, it would close ~1/25

 

This happened months ago, money would have changed hands a while back. Your point is moot, and really only even applies to someone who financed through the selling bank.

[excell]

No shit, closing is an industry "standard" of 30 days. You bring the cash to closing though, that is what closing is. If you closing is 12/30, the check exchanges hands that day. If you went into contract today, it would close ~1/25

 

This happened months ago, money would have changed hands a while back. Your point is moot, and really only even applies to someone who financed through the selling bank.

 

You gotta think past closing and past the buyer-seller transaction. Just because the selling bank has a check in hand, doesn't mean they have transferred (cashed) the funds from the loaning bank. It can often be months before a bank finishes processing the transaction if it makes financial sense for them and it's perfectly legal for them to do so.