Power Through Networking
An Interesting Foreclosure Story with a Happy Ending
This home was another fairly smooth transaction with a very sweet couple buying their first home. Although, there are a couple of interesting things about this transaction. This home was a foreclosure. The buyers competed for this home in a multiple offer situation and got it. During inspections, we did come to find out that the previous owner wasn’t the most skilled when it came to remodeling and such, so there were some funky things and surprises that the previous owner did to the home, which wasn’t exactly exciting news. But, the buyers decided overall for the neighborhood and price, they still wanted to move forward with the transaction.
One really awesome thing that happened is that one of the buyer’s lender conditions to close the loan was to put flooring in the family room, which the previous owner apparently took because that room was just concrete slab with no floor covering. Well, that part was not awesome, but the awesome part was that the bank who owned the home actually paid for the flooring, which was simply amazing!
Typically, with foreclosure homes, after going into contract, the bank who owns the home will NOT negotiate any more. They typically will NOT give any more credits or change price and such. But, in this rare case, they actually paid for the new flooring in the family room and the buyers actually got to pick the flooring which was laminate, and not just some cheap carpet. And, the bank also paid for baseboards in that room as well. So, that was a pleasant surprise and one less cost that the buyers have to pay for during their own remodeling.
One other kind of whacky thing that happened the day we had our inspections was that the previous owner actually showed up to the house! That was a first for me for sure. She thought I was the listing agent, which at the time, I was SO glad that I wasn’t. She was determined to find the listing agent because she was upset with her. It actually kind of scared my clients because they surely didn’t want some whack job to come randomly to their home once they moved in. She also tried to scare the buyers out of buying the home by saying all kinds of stuff about the home, including that their was some kind of lien on the fence because she never paid that bill. Although, with foreclosure homes, the new owner gets title free and clear and has no responsibility for past bills.
At first the buyers were concerned she would keep coming back and didn’t want to deal with her. Come to find out, she wanted to track down the listing agent. And, the craziest part of it all is that she wanted money from the listing agent. The short story is that before she was EVICTED, the listing agent gave her an incentive to move out and cooperate and offered her $1500 cash for key they call it, meaning that the bank was going to give her $1500 and she would give the bank the keys and move out. So, the owner at the time said ‘yes’, but then changed her mind back and forth for like a month and then in the end she would not move out. So, obviously, the cash for key option was not valid at that time.
As a result, the bank had to EVICT the previous owner so surely the cash for key option was not on the table, common sense, right? Well, apparently, even though the sheriff had to evict these people, they still wanted the $1500. Can you believe it? Is that crazy or what? They did NOT give up the keys, but actually stayed and had to be evicted, but then came back to collect the $1500. Amazing! People do not cease to amaze me. So, bottom line, that woman was trying to find the listing agent to get the money, but not interested in the home itself. Just to be safe, the agent took legal action to ensure the woman would not show up at the home again and also called her to warn her not to trespass on that property and let her know the consequences of trespassing. So, that was the end of that…although, the woman may be looking for the agent’s address. And, to top it off, I recently found out that the previous owner was a real estate agent! I did not confirm that information and not sure if she’s still a licensed agent, but the listing agent told me that she had her real estate license. I just could NOT believe it! I would think for sure that a real estate agent would know better…but then again…
The buyers are now in the process of remodeling the home to their liking and I can’t wait to see the final result! It will be exciting to see the finished home.
One really awesome thing that happened is that one of the buyer’s lender conditions to close the loan was to put flooring in the family room, which the previous owner apparently took because that room was just concrete slab with no floor covering. Well, that part was not awesome, but the awesome part was that the bank who owned the home actually paid for the flooring, which was simply amazing!
Typically, with foreclosure homes, after going into contract, the bank who owns the home will NOT negotiate any more. They typically will NOT give any more credits or change price and such. But, in this rare case, they actually paid for the new flooring in the family room and the buyers actually got to pick the flooring which was laminate, and not just some cheap carpet. And, the bank also paid for baseboards in that room as well. So, that was a pleasant surprise and one less cost that the buyers have to pay for during their own remodeling.
One other kind of whacky thing that happened the day we had our inspections was that the previous owner actually showed up to the house! That was a first for me for sure. She thought I was the listing agent, which at the time, I was SO glad that I wasn’t. She was determined to find the listing agent because she was upset with her. It actually kind of scared my clients because they surely didn’t want some whack job to come randomly to their home once they moved in. She also tried to scare the buyers out of buying the home by saying all kinds of stuff about the home, including that their was some kind of lien on the fence because she never paid that bill. Although, with foreclosure homes, the new owner gets title free and clear and has no responsibility for past bills.
At first the buyers were concerned she would keep coming back and didn’t want to deal with her. Come to find out, she wanted to track down the listing agent. And, the craziest part of it all is that she wanted money from the listing agent. The short story is that before she was EVICTED, the listing agent gave her an incentive to move out and cooperate and offered her $1500 cash for key they call it, meaning that the bank was going to give her $1500 and she would give the bank the keys and move out. So, the owner at the time said ‘yes’, but then changed her mind back and forth for like a month and then in the end she would not move out. So, obviously, the cash for key option was not valid at that time.
As a result, the bank had to EVICT the previous owner so surely the cash for key option was not on the table, common sense, right? Well, apparently, even though the sheriff had to evict these people, they still wanted the $1500. Can you believe it? Is that crazy or what? They did NOT give up the keys, but actually stayed and had to be evicted, but then came back to collect the $1500. Amazing! People do not cease to amaze me. So, bottom line, that woman was trying to find the listing agent to get the money, but not interested in the home itself. Just to be safe, the agent took legal action to ensure the woman would not show up at the home again and also called her to warn her not to trespass on that property and let her know the consequences of trespassing. So, that was the end of that…although, the woman may be looking for the agent’s address. And, to top it off, I recently found out that the previous owner was a real estate agent! I did not confirm that information and not sure if she’s still a licensed agent, but the listing agent told me that she had her real estate license. I just could NOT believe it! I would think for sure that a real estate agent would know better…but then again…
The buyers are now in the process of remodeling the home to their liking and I can’t wait to see the final result! It will be exciting to see the finished home.
Tags: a, buyer, buying, estate, first, foreclosure, home, homebuyer, real, time
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