Foreclosure in Santa Clarita>Question Details

Luisa, Home Buyer in Santa Clarita, CA

Can the banks/lenders accept another offer after we signed an addendum?

Asked by Luisa, Santa Clarita, CA Sun Apr 6, 2008

We submitted an offer on a foreclosed home, our realtor received an e-mail from the listing agent that the bank had accepted our offer...we signed an addendum and returned it back to the listing agent only to have the listing agent respond with " they have received a few more offers". Can this mean they can accept someone else's offer or? Please advise???

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If your agent read all of the addendums and contract and is an exclusive buyers agent, he or she should have seen a part that says, " we shall continue to market the home and accept other offers".
A contract is not fully executed untill all parties have signed not only the contract but addendums and are in receipt of such.
Joseph Beauvais
0 votes Thank Flag Link Thu Oct 7, 2010
If you have a copy of the addendum, you may need to check it again. There is usually a section in there that tells you that listing agent/bank reserve the right to continue accepting offer even if you have already signed and sent it back. Your offer may be one of the 20 offers that they accepted - all 20 are considered accepted with counter offers sent to the buyers. The truth is not all 20 buyers will accept the counter, some may back out when they get the counter, some may stick to the deal. Whoever makes it to the negotiation process will get the property. Most of the REOs properties are priced really low to attract buyers and higher offers. If you put the highest bid, you get the property.
0 votes Thank Flag Link Mon Jun 2, 2008
REO properties are a total different spectrum! Anything, can happen during the first few days of you submitting an offer. The addendum the bank makes you sign, indicates that they can accept a better price offer. Remember, you are dealing with financial institutions looking for a profitable offer and they don't have emotions like you and I do. Don't tie yourself to just one property, you have to be ready to jump to the next one.

Unfortunately, this is reality in a REO driven market, remember don't put your hopes so high! You will find the right home if not this is the next one.

Good Luck!
0 votes Thank Flag Link Sat May 24, 2008
Your question has many answers, some banks will give you a verbal acceptance but I would not say that you got the home. Like any contract, until it's signed off by all parties or escrow is opened, they can entertain other offers. I don't understand why some agents will say you got it only to find out another offer was just send over 10 minutes later for a better price. The agent has a duty to his client to present all offers, so get it in writing!
Web Reference: http://www.MarcSchwartz.com
0 votes Thank Flag Link Fri May 23, 2008
REO agents do a good job of not presenting paperwork to the bank in a timely manner to bring in more offers. Did you receive your original contract back signed by the bank? If not, I assume there is no 'deal'. I have put in offers on a Tuesday with a 3 day deadline, and find out the offer wasn't presented to the bank until the following Monday, by which point they had several other competing offers. Banks and Real Estate DO NOT mix well.
0 votes Thank Flag Link Sat Apr 12, 2008
ugh, what a nightmare!

unfortunately, a lot of real estate is a big game... TOO MUCH DRAMA! Like your first boyfriend in high school or something :)

Yeah, I'd be careful about libel... people are REEEALLY lawsuit happy these days...

I get the impression that YOUR agent is a bit of a rookie?? He/she needs to know how to deal with this sort of thing, and to go attack the LA in the office if necessary!

Sigh. I wish you luck on this one... at least you aren't paying the agents yourself :)
0 votes Thank Flag Link Thu Apr 10, 2008
That’s the issue , our agent has been very diligent in trying to obtain a final answer from the listing agent. It's really odd and frustrating because our agent has tried to contact the listing agent via telephone!!!! And the listing agent always responds through very short 2-5 word e-mails…We have yet to get this listing agent on the phone!!!! She always comes back with "have your clients sign this addendum" we signed and sent it right back to her. Then she requests a cashiers check as part of the deposit , we obtain this cashiers check from our bank, our agent e-mails her a copy of our check and asks her to officially confirm that the bank has accepted our offer , listing agent responds with " HANG IN THERE WE HAVE OTHER OFFERS" Our agent can not get a direct answer from this horrible listing agent . I'm not quite sure, but when all this is said and done what ever the out come may be..can I post on this site who the agent is ? It is a Private realtors office.??? Can anyone say slander!!! ……...because my statement has the potential to reach a very wide audience. (Very frustrated.)
0 votes Thank Flag Link Thu Apr 10, 2008
EXACTLY, MAGGIE!!!

Maybe her agent is a bad, bad agent...
0 votes Thank Flag Link Thu Apr 10, 2008
If this is the case then YES, they have accepted your offer. Just to be truly sure, have your agent acknowledge acceptance and send back confirmation to the listing agent. Your buyer's agent should be giving you this information, where is he or she?
0 votes Thank Flag Link Thu Apr 10, 2008
Ok, we have received from the seller/REO , the addendum and our original offer/contract signed by the bank...does this mean they have officially accepted our offer?
0 votes Thank Flag Link Thu Apr 10, 2008
I have helped people buy several foreclosure homes in Santa Clarita this year....and the answer is yes, until you or your agent have received the bank addendum signed by the seller ("fully executed"), they can take other offers if they desire. That verbal acceptance (usually done informally by email) doesn't mean anything. I can tell you that it doesn't happen often like this, as it makes the listing agent look bad and ruthless to a certain extent and develops a bad reputation, but, the seller is under no requirement to sell to you until they have signed the bank addendum that they required you to sign first. You made an offer, and they essentially make a counter offer through their bank addendum, if they receive a better offer before you guys come to a fully signed agreement...then they can act on it.

Often times when the REO listing agent has received verbal acceptance from the seller, and it's just a matter of getting the bank addendums fully executed, that REO listing agent will pull it off the market so it's no longer showed, and marketed to the public and other agents. But the REO agent is under no obligation to do that, but it would be the right thing to do in my opinion, and is done - just depends on the agent.

Sometimes your agent representing you can assist by keeping a good line of communication open with the REO listing agent, creating a good rapport, and "try" to avoid a situation like this. Sometimes a well established rapport can mean you getting the house or not - sometimes it's meaningless.

Best of luck.
Web Reference: http://www.TheScvAgent.com
0 votes Thank Flag Link Sun Apr 6, 2008
Luisa, I am an exerienced reo listing agent and deal with this prob often. Basically, even though you signed the bank addendum and your agent sent it right in, the bank does have to sign it and fax it back in order for it to be a completed contract. usally when a bank tells me ok, we pick this offer, I do not accept any more offers on the banks behalf. sometimes as you have aparently experienced agents will keep taking offers.... and it stops the process until the bank can review what has come in. it does not mean that they won't still be taking your offer and if you and your agent are concerned and you can, I would up my offer price a bit,... just in case. If you notice on your addendum that the bank sent you it states clearly that the offer is only valid and accepted after they have signed it and returned it to the listing agent and then of course on to your agent and you.... sorry you are going through this.... I wish the best of luck!
Leanne Smith - agent
0 votes Thank Flag Link Sun Apr 6, 2008
Dear Luisa,

Usually if the listing agent says the bank has accepted your offer it should mean that you have acceptance. But we are now in really ODD times and what was once the norm is now a new ballgame. These days until you have a SIGNED acceptance from the lender/seller there exists a very narrow window of time during which the listing agent CAN in fact present other offers and the bank/seller looking out for their own interests has seized this window of opportunity. I truly understand and empathize with your justifiable frustration.

My advice is that you ask your BUYER'S agent if he/she had received signed acceptance from the lender if he/she had then there could be recourse for you. But if he/she had NOT received the fully accepted contract then I'm afraid in this wheeling dealing market, the bank was free to accept other offers.

On your next offer, please be sure to ask for the ACCEPTANCE clause to be initialled and conveyed back to you. Once that has happened every other offer would be considered a backup offer and your offer would be the one in first position. You would then have time to obtain financing, get the home inspected and make your final determination of whether or not you wanted to consumate the purchase. With a fully executed contract you then would have recourse.

All the very best to you.

I hope my explanation helped.

Sincerely,
Maggie in Long Beach, CA
0 votes Thank Flag Link Sun Apr 6, 2008
Thank you Maggie,

We submitted an offer on a foreclosed property at full asking price...
Our realtor received a verbal acceptance to our offer via E-mail from the ( foreclosed home) listing agent that the "bank has accepted our offer but to sign this addendum", we (buyers) signed the addendum and returned it the same day to the listing agent...now the listing agent is stating that they have received a few more offers!!! Does this mean the banks acceptance is no longer valid ? Does the banks/lenders verbal have less meaning due to it being only a verbal acceptance to us buyers? Can the bank possibly accept someone else's offer over ours even though the bank has given us a verbal acceptance? Hope this makes sense...
0 votes Thank Flag Link Sun Apr 6, 2008
Dear Luisa,

Just need some clarification in order to answer your question:

1) When your offer was "accepted" did you receive the SIGNED letter from the bank acknowledging that they had accepted your offer?

2) Why were you signing an addendum if the offer had been accepted? So again my question is did you have a signed ACCEPTED offer in the first place.

Until and unless there is ACCEPTANCE on a contract, the other party is free to entertain other offers.

Thanks,
Maggie
0 votes Thank Flag Link Sun Apr 6, 2008
We received and signed an addendum from an REO seller. We were told that even if the seller also signs and we get it back signed, that they can STILL market the home and accept a better offer. We were told that the agreement is not FULLY EXECUTED until CLOSING. Several differnent answers on this subject: is fully executed = signed by both parties or when everything is done including closing. Guess we will see!
Flag Thu Mar 5, 2015
We received and signed an addendum from an REO seller. We were told that even if the seller also signs and we get it back signed, that they can STILL market the home and accept a better offer. We were told that the agreement is not FULLY EXECUTED until CLOSING.
Flag Thu Mar 5, 2015
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