Bank wants more than it's worth... Now what?

Question

So... I found the property, and it had another offer that had just come in on it. I thought I could win out, so I went through the hoops to get a personal loan so I'd have the POF (knowing I couldn't win without it) and by the time that went through, the other offer disappeared (I thought it was a brilliant stroke of luck!) and so I submitted the offer.

Now I know what happened to that other offer! It's a bank owned, and basically they want more than it's worth (seriously, I know the appraisal on it!) So yeah, screeching brakes. I can't pay what the bank wants (nor will I on principle) and now I don't really have enough to buy something else and have money to rehab it.

Also, if I just return the loan, I'm out $800 of the origination fee (I looked into ones that you could repay within 30 days with no fee but I couldn't get them or couldn't get enough).

I know I dug myself a hole and I'm hoping the universe gives me something soon, but in the meanwhile, do you have any idea what I could do or use this money to invest in? Should I just return it and consider that 800 my learning lesson or hold it incase something else comes up? I am going to wait at least another week or two and re-submit my offer to the bank and see if they will go lower once it sits a bit longer, but I'm feeling a bit panicked about the situation and would like some ideas if anyone has any!

Terry Miller · Answer

If nothing comes along in the next few days, you might have to eat the $800 that your lesson costs. I wouldn't be surprised if you get some consolation in about six months or so when the bank is still sitting on that property.

They are in the banking business, not the real estate business, and will suffer more from this than you will. They will lose thousands.

Melissa Kirchhoff · Answer

@Roy N. - Sorry, should've been more clear! I put an offer in, they countered still high and didn't budge after that. So it just sizzled out. It's newer on the market (which I think is the reason why they think they can get more for it) it's at a month as of today.

Roy N. · Answer

How long has the bank owned the property?   While the lender is going to try and recover what they are owed by the previous owner/borrower, it does not mean they won't sell for less.

Make your offer, at your price, and see what happens.