All Forum Posts by: Evan Myers

If I purchase a forclosure as my primary residence, what does the IRS consider the purchase price to be - in consideration of calculating capital gains - upon future sale; the below market value price I paid or the FMV at the time of purchase?

Michael,

Thank you!!! I'll talk to her.

The problem being, though is that my agent works I the same office as the listing agent who happens to be the owner/her boss. Should I just find another agent and go at it that way?

I'm torn as to whether its the bank holding this up or the listing agent/boss.

It's been in the market so long because there is a veritable glut of homes on the market here; in a city of 9,500 people there are currently 136 homes for sale all within a 7 mile radius. This coupled with low interst rates is the main reason I can see.

I should clarify that this is not an investment property per se; I like the house it's worth the appraisal at 74k. I would buy it at that and finance it; though its an REO so I'm willing to play the game. I feel it's easy to succumb to the notion from posts on here that after a certain amount of time the bank should dump the house. Doesn't seem to be the case here. I have the luxury of time and will work with what I can or back out for the time being. They won't sit on it forever.

In the very near future my financial picture will change for the better and my intent is to start investing in real estate; so I'll consider this a good set of training wheels.

About the timing of the loss; a non performing asset is a non performing asset for any length of time; this one compounded by taxes, insurance and up keep. Where do they draw the line between the loss they've already incurred and the continuation of the one on the books?

Good advice. I countered at $35,000.00 and we'll take it from there. Ultimately, though, what you're saying is that 720+ days on the market counts for nothing here?

I agree.

But, there's always a but...my comments here are in no way personal or directed at you. I appreciate the scope and intent of your post. This is just a "soap box" moment...here it goes:

Every time someone has told me or alluded to the fact that banks don't behave or process along logical lines, a little, sometimes not so little, mushroom cloud of disgust erupts over my head.

Congress, lunatics and wireless providers are not logical entities, nor have we ever been taught to expect or demand such from them. I get that. What I don't get is how institutions dealing with numbers - the seemingly most logical of all things - so often can and do get it wrong. I take offense and quite frankly wish that people, myself included, would start calling them on their ridiculousness instead of simply mollifying each other with the justification of their behavior as "banks being banks".

At the end of it all, I'll just keep plugging away. But, I feel better. ;)

I've had the same thoughts on and off fo awhile now. I grew up here and had moved away to Boston for the past 17 years. There, I dealt with realtors who were in it to get the job done; I've come to learn that such an agent is nonexistent here in the Upper Peninsula.

She's telling me its the bank. I'm at a loss as to how to make this happen. Any advice? Should I contact the bank to see if she even presented my offer?

It's been a year since they last cut the price; so...who knows?

I'm going to wait a bit and see what happens. Honestly, I think it fell off their radar screen so maybe now that I've brought it to their attention it will receive a bit of theirs in terms of a price drop.

My buyers agent used to work at the bank that owns it and is going to have a "name tags off" conversation with the person their who deals with their REO's.

Thanks, everyone, for the feedback.

My agent just called and the bank countered at $45k which is what they listed at.

I told the agent to counter at $31,500.00; her response was "I'll do it verbally but they won't go for it." Should I just wait it out?

Hard to pinpoint comps because everything similar in a 1 mile radius is an even split of REO and standard sale; closest REO would be $58k closest SS would be 69k; the lowest DOM for any of these properties is 180+ days.

Quote from contractor for immediate repairs is $4700.00. After that the roof, but not for at least two years.

I'm buying this place for myself to live in. It last sold in 06 for $78k and its assessed value is $74,700.00.

3 bed 2 bath 2 car detaced garage 1674sf

Listed as REO on 8/11/11 @ $64k

Reduced after 120 days @ $59k

Reduced after 365 days @ $45k

Comps in area selling between $42 - 88k

Offered $30k cash no contingencies 5k EMD 10 day close. It's now been on the market for over 2 years. There are a massive number of houses on the market here; coupled with low interest rates I think this is why it hasn't sold.

It's been 4 business days and still no response from bank.