June 13, 2010 | Friday night I made an offer on another house. I had become discouraged by the complete lack of progress on my previous offer, and decided I wouldn't just sit around helplessly twiddling my thumbs. I re-opened my search.
There are many properties on the market as short sales, but that would be like jumping from the frying pan into the fire. However, it was something I was willing to consider if different banks were involved. And I did find one that was at the right price in an even better location, but with all sorts of complications: two lenders (not just one) squabbling over how much each would receive, and one of them threatening to force the property into foreclosure if they didn't get what they wanted. And that was just the beginning. A really attractive property, but...
Then, on Thursday, another place came on the market with the same floor plan, a lower price, and without the complications of being a short sale. It had already gone through foreclosure and was in the hands of a builder who had bought up dozens of foreclosed properties to renovate and resell. Friday morning I did a walk-through, liked what I saw, and that evening my agent and I submitted an offer. Since the house had been on the market less than 24 hours, mine was the first offer.
Unlike a short sale, where the lender holds all the cards and can do pretty much whatever they want, this is an "REO" (real-estate owned) and most of the normal rules apply, including the requirement for the seller to accept or decline the offer within three days. So, by Tuesday at the latest, I should have a "yes," "no," or counter-offer on the deal.
Last updated on Jun 16, 2016