I'm checking out this home by me that I might be interested in. It's a foreclosure with one interesting notation on the listing "CASH ONLY"
Seems the previous six offers couldn't get a mortgage on the house.

The bank has been getting jerked around for over a year by people who want the house yet can't get a mortgage. So now don't bother them unless you have the money in hand. 11 room, 5br, 2.5 baths, brick, in a really nice and desirable neighborhood sitting right now at $109,900. Cash
So far the only down side with out seeing the inside is no central air.

Agent is getting a hold of the listing broker today so I can take a look at it.

When I tell people most of the RE in the county is over valued by at least 20% the evidence backing me up is piling up more and more. This is the fourth house in the last eight weeks that I have seen go for at least 30% off it's county value.

Quote:

The bank has been getting jerked around for over a year by people who want the house yet can't get a mortgage.

karma's a bitch, eh?

As an aside, I was talking with a title closer yesterday. I asked her how things were going (she works for a title company that doesn't do much business in the Hamptons - mostly regular folk) - she said the only people that were getting mortgages and closing were teachers and firemen.

Are you afraid to let the house sit a little longer and see if it will go down or do you want someplace to live? My Mom has an offer and acceptance in Eastern Florida for well below what the county has it as, too.

it probably has a zoning issue.

if so, you'll have the same problem trying to sell it one day.

there were cases where builders would buy 1 lot. Then build 2, 3 or 4 houses on that lot without ever properly sub-dividing the lot. So under the law/by the bank, the homes on the non-divided lot are listed as condo's.

I would check into whether it's zoned properly. Basically, there's likely a problem with how the home has been recorded by the county in some way that causes an issue with borrowing money to buy it and you would have the same problem one day trying to sell it.

Cj is correct in suggesting that you dig very deeply.

May well be some other problem that is not readily apparent.

I checked on a empty lot the other day in a bubble area near karl. These have sold in the past for as much as 550k each. The current asking price was 59K. Yes I said 59K. I asked the agent if local banks were providing financing on these and she said NO and said you "might" be able to get a bank you work with to provide funds if you put 50% down. Yes I said 50%. Understand this is an undeveloped lot not a home which require more, but it says allot when no local bank will loan any amount at any selling price.

We live in a duplex. The other half has been empty and for sale since 9/1/10 when the owner lost his job and moved to California. It's gone down from an original listing price of $230K to $185K. Saw someone looking at it two weeks ago who was very, very interested in buying, but it's still active. It doesn't have central air, needs replacement windows, and doesn't have much of a yard for kids to play in (playground is about 1/2 block away) but otherwise it's gorgeous and well maintained. Slate roof, brick exterior, front and back porches, one car garage, two fireplaces, refinished wood floors throughout, new kitchen and appliances, 1600 square feet, great neighborhood, good schools, etc., and in 5 months not one serious offer. I am so glad I'm not trying to seel a house now.

Why only teachers and firemen???

*not serious*

For all the continued emotional abuse we get from local governments about how we'll have to lay off all the teachers, police, and firemen (woe! woe! the kids will be ignorant if they manage to live through that fire and mugging!) it seems that the banks aren't worried about it.

Starving, some cities and states have programs that give grants to teachers, police officers, and firefighters to help them buy their houses, at least the first one. That may be one reason; don't know for sure, though.

Mari your right. I have seen some HUD foreclosures where they state Teachers, Police, Paramedics and Firefighters get preference over all others.

The house is in an older established neighborhood so there is no zoning issues.
I'm looking at the home tomorrow afternoon and my agent already told me they would take less than the asking price. She got the impression the bank wants this house off their books as soon as possible.

Als, they get those HUD in certain neighborhoods for 50% of if they agree to live there for x amount of years (I think 5). Just another public employee perk.

What happens if they move in 3?

I still don't get why teachers, paramedics, police, etc. get preferential treatment.

As stated by others, be very careful. Mortgages are often turned down based on property issues as opposed to borrower issues...

Don't worry, If I like it I'm have this place professionally inspected top to bottom. Doesn't pass due to any major issues they get to keep it on their books.

it may not be an inspection item.

it very well is probably something wrong with how it was recorded or in the paperwork trail somewhere.

There is a paperwork/legal reason that no one will give a mortgage on it. I would stay away.

If you really consider paying for it in cash, I would 100% pay a real estate lawyer to dig into it first for you to make sure there are no major issues that will affect re-sale.

Starvingsrtist,

I don't get why teachers, cops, and firemen get such generous pensions.

In all seriousness these houses are not in great neighborhoods and the idea was having cops live there would make it safer, and then, I believe, they decided to start extending the benefit to other "public employees".

Ditto already have my RE/Tax Lawyer lined up to go over everything foreclosure or not. I have good working relationship with him and he already lives in the same township. I've been in business since 1989 and believe me a $200 an hour lawyer is well worth the cost.

"There is a paperwork/legal reason that no one will give a mortgage on it. I would stay away"

Ask the title officer for a copy of the deeds of trust in the chain of title. Then you can see what "type" (watch out for hard money) of lenders have made loans on the property in the past.

Be sure to let us know the results of your digging.

Sounds like the condo towers financed by Corus that were blacklisted by other banks for financing. No one could get a loan in the towers and they failed.

As others said, could be some kind of zoning or cloud of title issue. Don't be afraid to walk at the slightest sign of trouble.

Mari your right. I have seen some HUD foreclosures where they state Teachers, Police, Paramedics and Firefighters get preference over all others.

That must be part of the "Fair Housing Act", right?

Co-worker (computer programmer) in NYC just bought a coop in the Financial District. 900 square feet, 33rd floor for $600,000. The seller accepted that offer. I don't know if he got a loan yet though.

My broker just called and told me to forget about the house. She pinned him down before we wasted our time looking at it. Seems the past owners did a nice sabotage on the home when they left. The first five never got to the point of an inspection because of credit problems. The last one found out during the inspection of the nightmare waiting for anyone who buys the house. Thus the banks reasoning for the cash only. The houses electrical wiring was cut in several places. So who ever buys it is looking at a total rewire of the house. The furnace and water heater were damaged to point they will need to be replaced. There was lots of little stuff also but she didn't elaborate. The worst one was up in a crawl space where a hole saw was used to cut holes in the roof. The missing piece was then lightly glued back in. Can you say a complete new roof? BTW this house has a slate roof. He also added they had an offer at the asking price yesterday on the house, and the bank was probably going to take it.

While I was out this morning I went over to look at another REO home about two blocks away for $93K. From the pictures on the website it looks like a fairly nice house worth about $130K or slightly more that needed a little work. There was an addition on the back that wasn't finished on the inside but figured no problem at 93K. Drove by, stopped and my jaw dropped open. Looking down the left side of the house I saw a 5 to 6 foot wide hole punched through first floor of the addition.

Good grief.

I've been looking at REO's and short sales here too. Most are just disgustingly gross, but some are gutted.

Make an offer assuming a gut rehab. I did that with a few houses in Chicago and it worked out great.

Interesting...I'm on the prowl for a new place too and have put in 3 offers in the last 2 months with no satisfaction so far. The fiance and I were going over MLS results here in Northern VA a few days ago and noticed two houses that were for sale "cash only". We were stumped...

When it says Cash Only the property is usually in such bad shape no bank will finance it.