Wednesday, August 6, 2008

We can Out-Wait, but can we Out-Wit?

Some may remember the short sale we agonized over this spring. In the end we decided not to go up in price and meet the bank's price. Our waiting strategy may pay off yet. After many months of sitting at the bank's (first loan's) price, we are going to resubmit our offer (albeit adjusted for the increase in interest rates).

Last Sunday we did see an REO that is amazing, and in our price range (the one on Moonstone in EDH). But they want us to go through all kinds of prequal and legal hoops, and the bank who owns it is Option One (not excited about dealing with them again). Our realtor figures it will go for much more than asking, so we are not inclined to go through all the hassle in order to get outbid.

I am also kinda still kicking myself that we didn't go up a bit on the last REO we bid on. It was basically in move in condition with lots of gorgeous tile and granite work. Sigh.

12 comments:

Buying Time said...

Sac Bee Housing blog did a related piece on the same issue we faced this weekend....(REO requiring prequal etc.)

http://www.sacbee.com/static/weblogs/real_estate/archives/014376.html

Patient Renter said...

the one on Moonstone in EDH

I used to live on Moonstone in EDH. Be weary of settling issues with some of the homes on that street.

Buying Time said...

Geez PR, you sure get around =)

So what do you think of the REO on Moonstone....I am still lusting after it. We would be willing to go to about $420k on it, but I have a feeling it would be bid up to around 460k. You think its worth putting in a bid?

Jacob said...

I was at an open house a couple weeks ago for some reo in roseville and there was the broker there as well as the agent.

I was told that their broker would have to prequal me to purchase before I could place a bid (tho I could get financing from anyone).

The broker worked with indymac, this was after the fdic took over. Tho maybe he worked for the nation indymac or whatever it was that took over the failed one.

I told him I would be putting at least 50% down on whatever home I bought and had a FICO of 830 so wasn't concerned about "IF" he would qualify me. But I also told them I was just shopping and wouldn't be buying for at least a year.

Realtors seem to get irritated at that. They always ask me what my time frame is, 1 month, 2 months, or even 6 months. I tell them to replace month with year and they would have it.

So far I haven't seen that must have home for me. I know it will be tough to not put in an offer if I do find it.

Patient Renter said...

I think that house on Moonstone is great. Some of the homes on the high point of the street where the slopes are steeper had settling issues, but I'm sure it's not a problem with the home listed at the end of the street. The inspector would confirm.

So yea, I think I'd go for it, judging from what you've mentioned you're looking for before. Nice neighborhood, no HOA, nice house, three's a park down the street, and Ridgeview park up the hill is great. I think you're right about the potential for a bidding war though, but I don't know that it hurts to try (easy for me to say since I haven't been through the hassle of bidding yet).

Patient Renter said...

Man, I just re-read about all the hoops the bank wants you to jump for to qualify for that house.

I guess one way to think of it is that everyone else is probably just as dis-inclined to want to jump through all those hoops, which could be a good thing.

Buying Time said...

Thanks PR. I was kinda thinking we wait a week.....that way, if anyone was really anxious to jump on it (and thus inclined to start a bidding war) they would have done so.

There aren't many folks who know/or are interested in fixing up a home around here (most seem to like move-in condition).....so that seems to work to our advantage.

Husmanen said...

Moonstone was on our list too. We just love the neighborhood, street, entry way and the basic look and feel of openness, especially the front porch. Also, a big plus, it appears to be a light fixer.

But after further inspection it doesn't meet a few of our criteria. Not sure if I am getting too picky now but at the same time I do not feel too stressed about it.

A few things to consider with Moonstone:

(1) current backyard access is down a set of stairs. If I remember right you would prefer a one story.

(2) backyard is not very large and has a large oak tree on the far left - restricting some use.

(3) open lot behind it, since the home is relatively far back on the lot it is not too far from the rear lot line. If someone decides to build a home behind the house that is close to the rear lot line you will be very close.

Those were just some of my initial concerns, like I said at the beginning there are many positives with this home and we love the neighborhood.

The best of luck.

PeonInChief said...

Hmm. Oak trees are really nice--and very native. But you cannot irrigate around them at all. No lawn, no thirsty flowers, no vegies. Summer irrigation can kill them.

It's probably a Valley Oak, though, so you don't have to worry about Sudden Oak Death Syndrome.

Cmyst said...

ok, this runs counter to what our landlord told us to do, which was to water the oak in our backyard once a month for about an hour or two.
If this is true, it's no wonder the poor thing looks so bad.

PeonInChief said...

Cmyst--

It probably looked sickly, so your landlord took up watering it. It still looks sickly. Quit watering it and see if it improves. It may just be that it's a sick tree. Also it appears that we're going to have an early fall. My oak's leaves are already turning.

PeonInChief said...

Cmyst--

Other trees, however, do very well with a deep soaking once a month. He probably read that somewhere and then...