the biker who buys houses forum

[dougbenn]

I negotiated a short sale with Ocwen. Ocwen was owed 304K I had them agree to 200K. The BPO they had done showed the property to be worth $245. Listed the property for $229 for 3 months, no offers. Lowered the price in July to $219 and got an offer 3 days later. My discount payoff letter expired three days before the offer came in. I then asked for an extension of the original discounted payoff and they said yes. Closing was set for July 31st and I discovered a delinquent tax bill for $15K. Now I was not going to make anything on the deal but I would help the family out. Trying for that good Karma.

So on July 30th the banks take back the offer and ask for $260K plus a note signed for 50% of the deficient amount. I could not believe they would get so greedy at the end. I then informed them of the amount of the deal plus the deficient amount. I told I am not making any money on the deal. I faxed them the HUD-1 and the delinquent tax bill. They would not backoff and only wanted the new agreement.

Do we really wonder why banks are in such trouble? Ocwen was only looking at the amount that was owed to them $304. The BPO which they ordered showed the property not being worth. They wanted someone to pay over fair market value because they made a bad loan. You would think they would want this off their books. Three other houses on the block are for sale and have been for over a year.

Any words of advice here? I am going to try to convince them one more time.

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