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Wednesday, May 16, 2012

House #9 and "Flip Flopping" Banks!

This business is full of surprises...you might recall that my search for the next investment property had led me to get this house under contract. Well, after doing a thorough inspection and calculating the rehab costs I determined that the price I had the house under contract for was too high. So I decided to tell the bank that I needed to lower my offer price (by $10,000) instead of asking for repairs (which they wouldn't do anyway). 

I knew this basically meant that I would not get this house because they have had multiple offers on it and the house had been under contract with other buyers before.

Needless to say their reply was quick and swift...NO. The seller will not lower the price. We had multiple offers on this house and is sold AS IS, blah, blah, blah...

So I asked them to terminate the contract and return my $5,000 earnest money check. I did not hear a peep from them in 3 days (these people only work through email, argh!) and then they came back to me and said they would lower the price by $5k. My answer was no, it needed to be $10k lower. Another 3 days went by and all of a sudden I get an email saying Congratulations, the seller has agreed to your purchase price…what!!!

This took me by surprise because I was certain they would not accept my price. So, in what seems to be a classic case of "flip flopping" they agreed to my price and we are supposed to be closing within the next week.

So after several months of looking it seems I have finally found House #9. Something to be said about persistence...

I don't want to sound too victorious because dealing with these people has been an exercise in patience and we have been going back and forth on this house for a month now. So nothing is final until we are at the closing table. 

The house still has to come up with clear title and it must not burn down, get hit by lightning or crumble in an earthquake or get swooped up by a tornado between now and then. But barring any of those things we should close early next week and start rehabbing soon after that. 
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  1. That's what banks does worst.. Good for you on the other hand, nice virtue of persistence.

    1. Thanks. That is the thing when dealing with this banks it can go either way. It is easy to get discouraged after so much rejection but you really do not know when something is going to go your way...unless you keep trying...


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