Bank Repo
Posted on March 7, 2007 - Filed Under Business |
The description for the four-plex said "Bank Repo".
These two little words always manage to cause a frenzy of activity. It’s ingrained into the heads of the general public that "Bank Repo" means good deal. Much like others, I had delusions a bank repo could be purchased for pennies on the dollars. I’d walk away with the steal of the century while members of the paparazzi burned out flashbulbs, taking photos of the next Donald Trump.
Let’s discuss some terminology. When I use the word "fourplex", it’s actually four units physically connected together. When I say "four unit", it’s four separate houses on one lot.
I saw the interior of both properties. The "four unit" property really appealed to me. But let’s talk about the fourplex.
After having seen the fourplex, I returned with the Real Estate Agent to his office. He and I agreed, before extending an offer, further research would have to be done. My warning lights were going off, seeing the plywood sign strapped to the side of the house. The realty company and their phone number were sprayed painted on.
Yes, the MLS description said "Bank Repo". Yet the "Repossessed" field on the MLS wasn’t checked. So maybe it was a private foreclosure? Then the box should have been checked. Why wasn’t it?
A few clicks later, the history revealed that the fourplex had been foreclosed on for $650,000 yet it was listed as $799,000. It’s common practice for the lending institution to sell it for the amount it was foreclosed on. If it’s sold above that amount, by law the difference must go to the owner. In this case, the company would have to return $149,000 to the owner.
The name of the realty company was Paradise Investments. Then we found the name of the mortgage company: Paradise Mortgage.
Something didn’t feel right.
Pass on the fourplex.
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