so much for that...

we were just dealt some seriously bad news.

the new bank that took over the mortgage on the house we're trying to buy has decided to be grade A douchebags, for reasons we don't understand. they've told us they will not give us a written approval so we can proceed with the inspections et al, and that they will not forgive the deficiency judgment. which basically means we're fucked.

the whole nature of a short sale is the bank agreeing to accept less than is currently owed on the house (forgiving the deficiency) to avoid taking a larger loss in foreclosure.

we offered $315k. we don't know how much is actually owed on the house. all we know is it was purchased in 1998 for $176k and somehow the current owners owe more than $315k. you'd think after ten years of payments it wouldn't be possible for them to owe twice what they originally borrowed, but they did have an audi and two jeeps parked out front last time we tried to look at the house. they obviously weren't smart with their money or equity.

that's neither here nor there... houses that go through the foreclosure process and end up sold at auction typically go for $80k less than they'd get in a normal or short sale situation. assuming $350k is owed on the house, they're going to screw us and end up losing $80k instead of $40k. this, ladies and gentlemen, is the industry that required an $800 BILLION bailout. do you see why? give the option of losing $40k or losing $80k, they're opting for the latter.

there are three possible explanations. 1.) the "loss mitigator" we were assigned is a complete asswipe. 2.) said loss mitigator is an idiot who doesn't know what he's doing. 3.) he doesn't have the authority to make that call.

we're really hoping it.s #3. that's the ONLY shot we have at still getting this house. if that's the case, we escalate the process over his head until we get someone who CAN override the decision. the pisser is, the original bank had already signed off on all of this. we don't know why the new bank didn't do the same.

our only other recourse is possibly trying to pay the difference, but we don't know how much the bank needs to forgive. if it's more than $20k, we're screwed. we just can't afford to go more than that and still make the mortgage payment each month.

things are looking bleak, we don't have any other backup houses out there we like. I'm about ready to just go sign a lease on one of the new luxury apartments in ballard and say fuck it... at least we'd have a nice place. and for $1000 less a month than we'd pay for a mortgage.