What happens to those on the edge of foreclosure?
If you are Jan Terry, owner of this house at 2872 Vista Acedera in La Costa Valley and Jenae’s co-conspirator, you pull out all the stops.
First it was to try their lease-option program, hoping to find a renter willing to cover her roughly $9,000/month obligation. But no takers.
Then she tried the typical short sale strategy, starting with a list price of $1,100,000, which was slightly under her purchase price of $1.25 million, which she financed 100% in April, 2007. She eventually lowered it down to $890,000, but then cancelled the listing.
Now she has reverted to the last resort. We think she must have sent in a short-sale offer to the bank to postpone the trustee sale, which was scheduled for July 17th.
In the meantime, she has rented the house to 14 surly individuals who come and go at all hours, night and day!
The HOA says they can’t do anything. Carlsbad P.D. says they might tow this car that they park around the corner, but that’s about all they can do.
The neighborhood has already suffered from this inflated sale, which contributed to others paying too much – now the impending foreclosure of a house that is surely in disrepair will help tank values further. Thanks Jenae!!!
These are the ‘hoods where we’ll start seeing "Neutron Houses." They’ll sit empty, no one will know who really owns them and on what terms. Squatter or renter or property manager? Who can tell?
For my money look at school enrollment. There’s noise from demographic shifts but unexpected enrollment drops are signs of trouble.
Wow! The barrios of the 21st century are born!
Hmmm. I guess I better move it then.
This is exactly why I say it’s best to own West of interstate 5. The beach will always have a demand more than inland.
Need advice bubblers: Just got 2 offers on my house after 100+ DOM. First offer guy is coming with over 50% down payment so pretty much sure thing assuming inspections turn out OK. 2nd offer is $20K more, plus buyer doesn’t have agent so I save on commissions there ($18K), but this buyer is only coming with around 10% down payment. Looking at roughly a $40-45K net difference if 2nd buyer can perform. What should I do???
A bird in the hand is worth 2 in the bush?
Split the baby and take back a fully disclosed note from the first buyer such that he puts down 30% and gives you 20% at a price $10k higher.
Rob Dawg? What the heck are you saying? He’s going to lose his offer when you start asking for weird deals and more money in this market.
Your posts always are so difficult to understand. I guess that makes you feel smart.
He’s got a higher offer. People with large down payments (like me) use that to squeeze price. it isn’t weird to reduce down payment requirements by carrying a second which reduces the buyers out of pocket and your upfront tax impacts. I’m assuming the split the difference I suggested is a reasonable counteroffer in light of a higher offer with less sure closing.
Everything is negotiable.
So 1st buyer is a possible done deal, 2nd buyer is a better offer on paper if he doesn’t bail. If you’re really that confident on #1’s motivation, I’d see if he’s willing to negotiate a little in light of the better offer. If he’s not willing to add $10K or $20K to win you over, the worst thing that can happen is you’re back to square one. The 1st buyer isn’t going to bail on negotiation unless he was on the fence to begin with. If he does meet you halfway, you can accept the 1st buyer if you choose. If he doesn’t, you can accept the 2nd offer and see if he really does follow through.
No gaurantees but that’s the way to go if you think you have at least 1 serious offer.
The bigger down payment only means that the financing is a done-deal, you need to size up the buyer too. There are big-money buyers who have egos to match, and want a great price, want everything fixed or more credits after the inspection, and more willing to walk if they don’t get their way.
Do you have an agent?
Have you or your agent give the 10% buyer the transfer disclosure statement and walk around the house to review any problems or possible repair issues that could come up in the inspection. Then make sure they are clear about it selling "as-is" or pre-determine how much credit you are willing to give for repairs. Confirm with their lender that they are pre-approved for 10% down financing, and take the higher deal – quick. Mr. Big-Money doesn’t like to wait, make the deal in the next 24 hours, or go back to the lower offer.
Thanks guys. First buyer doesn’t want to budge from his offer and gave me a 5pm deadline today to respond after submitting the offer in the morning. So that means I’m going with the 2nd offer since deadline is almost here. I guess it’s higher risk, higher reward (crossing my fingers). Hope I’m a renter in 30 days!!!
I honestly think you’re all crazy. The options were to take a sure thing or something that probably won’t happen (10% down, good luck with that) for an extra $20k to sell a house 100+ DOM in a cratering market. Not to mention the state of the financial institutions.
The 5pm offer deadline would have irked me a bit, but after this much time on the market I would assume you’ve come to terms with what you think is an acceptable offer.
Good luck on the sale Mojo, sincerely. I hope you beat the odds.
I’m with Genius, but good luck anyway! I hope it works out, Mojo. 🙂 I’m sure you’ll report back.
My parents have a home like this on their own street. It’s owned by an "investor" who has been forced to rent it to anybody who was willing. Now their once quiet street is filled with 10-15 junker cars on average every night. They can’t even find a space to park in front of their home some times. It’s sad but I’m sure this is happening in many once nice neighborhoods.
I’m with Genius, too. HOw does that saying go, “The first offer is often the best offer,”? ESPECIALLY in an iffy/declining market. I’d have taken the money and RAN!
And of course, Mojo, good luck. It sometimes works to take the higher one, but it IS riskier….
Genius I don’t think either choice is necessarily wrong because I honestly don’t think the 1st buyer is a sure thing. As Jim pointed out, there’s a good chance he’s going to make demands and cost more than just $40K, possibly walk anyways over some detail. I know, I’ve been that demand making A-hole myself. =)
suburbs are the new ghetto. Why fit one family in a 4 or 5 bedroom home, 3500+ square feet when you can fit two or three.
Go get ’em Jim! You’re right to highlight this sort of fraud. Clearly they were let into this deal while they were way underwater.
I’m surprised you haven’t mentioned the names of all the others involved in this scam – the realtors who didn’t sniff a dead fish, the bank that “qualified” them, and the rest of the chain of fools.
Finally – just yesterday – only two years after Jan Terry moved in – the banks had the locks changed! THANK GOD the neighborhood is free of her and her low life trash she brought with her!