Foreclosure in Madison>Question Details

Alochner, Home Buyer in Madison, WI

Can a person make a secondary offer on a forclosure property that already has an accepted offer?

Asked by Alochner, Madison, WI Thu Nov 17, 2011

My husband and I wanted to make an offer on a forclosure property that already has an accepted offer with one contingency. We wanted to make a cash offer with no contingencies, but the realtor told me that the bank didn't accept secondary offers. Is this true?

Help the community by answering this question:

Answers

14
You have received a lot of advice to this question. Some good and some a little less. As a broker who has handled a lot of foreclosure listings as well as a buyer broker who specializes in finding good foreclosure buys, I will give you some fee advice. 1. Not all foreclosures are good buys. 2. Most of the good foreclosure sales are sold almost as soon as the property comes on the market. Prior to the listing going on MLS the listing broker has already been given a contract to manage the property for the selling bank. During this period the listing broker (property manager) supervises getting the property ready to show, works with the lenders agents who have to enter to appraise and value the home, etc. The point is that the future listing agent has access to the home and knows what kind of property it is for about 6 weeks or more before it is actually listed. If is going to be a good deal it will be gone within a few days at most.

I had a property recently where I represented the buyer. We had an appt to see the house 2 hours after it was listed, wrote an offer at the house. (we were one of 6 parties to write an offer that day) Ours was accepted. Your buyer broker needs to know how and what the banks are looking for and how to submit the offer and how to respond.

In direct answer about secondary offers. Everyone that I know off is flat rejected with written orders to the broker that we will keep the name and if it falls apart we will call you. Never seen that happen. The secret is to get an accepted offer. If you lose out on one have your broker find you another and work to be first in line.
0 votes Thank Flag Link Fri Nov 18, 2011
The answer to a question that is never asked is always no. So with that advice, I would suggest putting in an offer. The bank may not take it but the only way to find out is to put one in.

Hope that helps and good luck.
0 votes Thank Flag Link Fri Nov 18, 2011
Did this information come from the listing agent or another agent that showed you the property? Find out who the lender is.

Some banks require the offers to be uploaded electronically and do not provide a way to upload secondary offers. That being said, if you have interest you can still submit an offer to the listing agent, who can present it if and when the primary offer falls apart.

Buying foreclosures and short-sales usually is less straight-forward than a traditional purchase. Depending on your situation you may not want to put your life on hold to wait this out... I'd keep looking in the mean-time, but still write the back-up or secondary offer if this was a property that was desirable!

Hope this helps!

Shawn Kriewaldt
Broker Associate, Keller Williams
0 votes Thank Flag Link Thu Nov 17, 2011
Some lenders will accepted secondary offer. Who is the lender?
0 votes Thank Flag Link Thu Nov 17, 2011
I have been the listing broker on a lot of foreclosed properties. Every bank and lending institution I have represented has refused to accept 2ndary offers. They always tell me get the buyers name and number if the deal falls apart we will call them.
0 votes Thank Flag Link Thu Nov 17, 2011
Regardless of what the bank will or will not accept, it is the realtors responsibility - They are required to present all offers to thier client. Worst case the bank rejects your offer. ........ Generally the bank will want all offers in PDF format so submit your offer via email in a PDF file.

I would submit the offer.

Good Luck - The Birschbach Team ... Keller Williams
0 votes Thank Flag Link Thu Nov 17, 2011
As you have read, the bank will do what ever pleases them. PERIOD!
As others have advised, you can have the real estate professional representing you stay in close contact with the listing party in the event an opportunity presents itself in the near future.

Based on all the players involved in a foreclosure situation, especially if there is an investment company in the mix, stating yourself as a 'cash' buyer may not work to your advantage. This has no bearing on the situation you inquired about. Consult with your agent for more information in being more strategic in your home purchase offers.

I would not put your home search on hold waiting for a opportunity to present itself, I would advise continuing your home search. You may find the perfect home is yet to be discovered.
0 votes Thank Flag Link Thu Nov 17, 2011
Yes, you can make a secondary offer. The point your Realtor is making is what the seller will do with it. With foreclosed properties, the bank, like any seller, may or may not consider secondary offers. With foreclosed properties each bank handles sales of their foreclosed properties differently. In this case, the Realtor says bank will not consider secondary offers. If you like this property, I would definitely put in a secondary offer. Your Realtor is obligated to submit it. It won't hurt and, in the event the primary offer falls through, which happens often in this market, you want to be next in line. If the first offer falls through, by the time you find out about it, another offer could have primary position. If you do write an offer and your Realtor submits it, the listing agent must do what their client, the bank selling the property, instructs them to do with the offer. At least you've made the offer, which would be a strong one, and your Realtor must submit it if you instruct them to. If you have any questions, please feel free to contact me. I'm a native Madisonian and experienced with foreclosed sales. Alex Saloutos
0 votes Thank Flag Link Thu Nov 17, 2011
Hi Alochner,

Our State of WI Offer to Purchase allows for people to write secondary offers. On a foreclosure, it is a little trickier because not all banks will consider other offers unless the primary has fallen through first. Your agent should be able to talk to the bank's representative to find out if they will take secondary offers. Really, there is no down side from the perspective of the bank because it does not obligate them to any single offer - they are free to accept multiple secondary offers in addition to the primary - however, many large banks that operate on a national scale will have a one size fits all policy and that is that. If you are interested in buying a foreclosure, you might want to have a realtor as your agent who will keep you updated as soon as properties come on the market. Very often the best priced foreclosures end up with 4+ offers at a time so it pays to be prepared and your agent can help you with that. Feel free to contact me if you have any further questions about our market.

Thanks,

Jean
0 votes Thank Flag Link Thu Nov 17, 2011
The bank might not accept the secondary offer but you don't know until you try. Good luck.
0 votes Thank Flag Link Thu Nov 17, 2011
Hi Alochner,

Have your Realtor ask the Listing Agent if they will hold your offer as a Backup Offer. It will not be submitted to the bank unless the current accepted offer falls through for some reason. However, in today's market, it is not unusual for the 2nd or 3rd offer to be the offer that actually closes.

Good luck.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Thu Nov 17, 2011
Your offer could be use as a back up offer by the bank.So you can ask them to keep it as a back up offer.Good luck
0 votes Thank Flag Link Thu Nov 17, 2011
The Banks often want to concentrate on one Offer at a time; they expect the Listing Agent to filter through multiple offers.

You could be putting your life on hold waiting forever for a call-back. Especially on a Shortsale.
You might have your Agent talk to the Listing agent about a Back-Up Offer and see if he will call your Agent if the current deal falls thru.
People have a way of losing superfulous paperwork; know what I mean?

Good luck and may God bless
0 votes Thank Flag Link Thu Nov 17, 2011
Yes, it's called a backup offer. However, not all sellers accept backup offers, so have your agent check with the listing agent to see if the seller will accept backup offers. If your offer is accepted in backup position you will be next in line to purchase the home should the first offer fall through. I hope you find this helpful.
0 votes Thank Flag Link Thu Nov 17, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer