Well I think sometimes bank bureaucracies are just stupid.
A friend of mine is a real estate agent. He has been trying to sell a bank foreclosure house for the past year. The bank will not sell it to a real estate agent so my friend can't buy it.
There is a PRE-APPROVED BUYER who wants to buy the house.
But the bank that owns the house ONLY wants to sell the house for CA$H. The buyer is pre-approved for a FHA loan up to $150,000. The bank agreed to sell me the house for $105,000 cash, I have an agreement (not a contract) from the buyer to buy the house for $130,000.
It is a possible risk that the buyer may back out. So this is not a 100% sure deal for me.
But what I don't understand, and I mean I simply can't wrap my mind around this at all, but if the buyer is willing to pay me $130,000 then why is the bank that owns the house unwilling to sell it to that same buyer for $130,000?
The bank that owns the house is NOT the bank that has pre-approved the buyer for the mortgage. So what I can't grasp is if I am going to walk away from closing with $130K in cash then would not the bank that owns this foreclosure also walk away with the same money and pick up $25,000 in added profit above their selling price of $105,000? Why is the FHA loan a deal killer for the bank that currently owns this foreclosure house?
Can anyone begin to explain this to me?
A friend of mine is a real estate agent. He has been trying to sell a bank foreclosure house for the past year. The bank will not sell it to a real estate agent so my friend can't buy it.
There is a PRE-APPROVED BUYER who wants to buy the house.
But the bank that owns the house ONLY wants to sell the house for CA$H. The buyer is pre-approved for a FHA loan up to $150,000. The bank agreed to sell me the house for $105,000 cash, I have an agreement (not a contract) from the buyer to buy the house for $130,000.
It is a possible risk that the buyer may back out. So this is not a 100% sure deal for me.
But what I don't understand, and I mean I simply can't wrap my mind around this at all, but if the buyer is willing to pay me $130,000 then why is the bank that owns the house unwilling to sell it to that same buyer for $130,000?
The bank that owns the house is NOT the bank that has pre-approved the buyer for the mortgage. So what I can't grasp is if I am going to walk away from closing with $130K in cash then would not the bank that owns this foreclosure also walk away with the same money and pick up $25,000 in added profit above their selling price of $105,000? Why is the FHA loan a deal killer for the bank that currently owns this foreclosure house?
Can anyone begin to explain this to me?