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Renting in Mass · Posted: Mon Oct 17, 2011 3:17 pm GMT Post subject: My Offer

So I made an offer on a house. My initial offer was 35k under their asking price. It was a reasonable offer based on the comps and the condition of the house, which needed all new carpets and reeked of cigarette smoke. They countered with 5k under their original price. I countered up 5k from my original offer, said it was my final offer, and they rejected it.

Here's the story of the house. It's a divorce. They paid about 200k in the late nineties and pulled out an additional 200k in equity in recent years. So now they are underwater if they don't get their asking price. Irritating. It's ridiculous to have a 400k mortgage after 10+ years of living in a house you paid 200k for.

Here's a question for everybody. I noticed on the registry of deeds a document form the county sheriff's department. It's from late 2010. It lists the homeowner and the property, and then says "By virtue of the attached execution... I have this day... seized title and interest in such real estate." Then it lists an amount of about 3k. The creditor is a big bank. It's not the originator of their mortgage, but maybe it's the current owner of the mortgage?

Any thoughts on what this document means? Did they not pay their taxes? Their mortgage?

Is their a way to see if the property is currently in default?

I'm going to be really irritated if they are just sitting in the house (after pulling out 200k), not paying their mortgage, and waiting for the bank to kick them out in another year or two.

john p · Joined: 10 Mar 2006 Posts: 1820

I think the real estate agents should be disclosing everything. They are acting as "agents", so I'd hold them accountable for getting you the 411.

If you went at it alone, you should still be able to ask for the sellers to disclose all the details of the property.

I mean the party putting the house on the market should be authorized to sell it. You should be entitled to know who you're dealing with. It sucks if these potential squatters are just trying to milk the situation....

Renting in Mass · Posted: Mon Oct 17, 2011 6:39 pm GMT Post subject:

Despite the language in the sheriff's order, I think the sellers still own the house. I'm guessing that the language implies a lien on the property or something. I wish I was buddies with a real estate lawyer Wink

I'll try asking my agent.

I don't think the sellers or their agent are under any obligation to tell me whether or not they are currently paying their mortgage and taxes.

Renting in Mass · Posted: Mon Oct 17, 2011 6:58 pm GMT Post subject:

After looking more closely at the document, I think it refers to a parcel of land adjacent to their current lot. Maybe they owned part of the next lot, but then lost it to the county when they didn't pay the taxes.

balor123 · Joined: 08 Mar 2008 Posts: 1204

Could it be related to the divorce somehow?

Renting in Mass · Posted: Thu Oct 27, 2011 12:06 pm GMT Post subject:

I heard back from their realtor today. They are "getting closer" to accepting my offer. They want my best offer in writing. My best offer is going to be my original offer from the last round. Interest rates are up since I made the slightly higher counter.

At that price, it will be a short sale to the tune of 25k. I've been reading that banks are becoming more willing to complete short sales, but I don't know how true that is in Mass. I can't imagine they are liking the 500+ days it takes to complete a foreclosure in this state.

john p · Joined: 10 Mar 2006 Posts: 1820

Sounds like it might be related to the divorce situation like baylor suggested. (having the offer in writing sometimes suggest trust issues...).

I wonder if they get the sense that their situation improves with time? If mortgage rates go up, I wouldn't be shy to lower my price to reflect the premium in capital costs. They need to have an impression that you aren't their back up plan and if they blow it with their buyer their situation will be worse.

I'd date around too, keep looking. Sounds very frustrating; sorry you have to deal with it....

Renting in Mass · Posted: Fri Oct 28, 2011 5:26 pm GMT Post subject:

I haven't committed to anything until the bank accepts the offer. Basically I just pretend that the short offer doesn't exist, and maybe I'll be pleasantly surprised in six months when the bank get back to us.

Most likely I won't hear from the bank, the owners will default, and the bank will get around to foreclosing in a few years and sell it for a much steeper loss than they could sell it to me right now.