I have checked with my realtor and a few more around my area and it turns out the listing agent was not very interested in selling the home. I called the listing agent again to confront him of his lies, he brought up numerous excuses saying that it was the lender's choice and that he had no control. He even told me it was sold when later I found out that there weren't even any offers. So basically, he didn't wanted to complete this transaction. I don't know why, but I surely will never reference nor recommend him to anyone I know. Although I was not able to purchase this home, in fact, never even see it, I have learned alot.
Again, thank you for your answers and I consider all of them to be the best answer.
A point of clarification for you. An REO (Real Estate Owned) property is just that - already taken in foreclosure and OWNED by the BANK. Offers on REO properties typically get approved quickly since the bank owns the property.
A Short Sale has to do with properties not yet taken by the bank and, still owned by the seller (subject the the existing mortgages). "Short Sale" means that the value of the property is less than the amount required to payoff the loan balances and the seller likely cannot make-up the difference at closing. Handling short sales is an "art unto itself" because the listing agent has to work with the seller and negotiate on their behalf with the lender(s). Short Sales take a long while to get approved.
In either case, you do NOT need proof of full asking price in cash to make an offer. As I said before, get yourself a Realtor who will work only for you on your behalf.
Good luck as you move forward,
1) Get your own Realtor that will represent YOU. The listing agent has a Fiduciary Responsibility to represent the seller - NOT you.
2) If you want this house (assuming it's not really sold) make sure you are 100% pre-approved by a "Direct Lender" such as one of the large national banks. You will also have to proove you have the funds required to close escrow - the down payment, and closing costs plus your pre-approval for the loan.
3) Have your Realtor write the offer you want to make. (S)He will submit it to the Listing Agent. The Listing Agent MUST submit it to the seller (unless the seller has given specific instructions not to submit additional offers - highly unlikely)
4) Have your agent check the MLS to see if the status has been changed from ACTIVE to either Backup or Pending. If the property is truly in contract the status must be changed or the Listing Agent and Broker face stiff penalties from their Association.
If you are not successful in this purchase, move on - there are plenty of properties available. You must be ready to make offers quickly on Bank Owned properties.
Hopefully, this is helpful...
Best of luck!
This is why I do not recommend a potential buyer calling the listing agent because many times the translation is lost.
You can view all the bank owned homes here http://www.socaloceanviews.com/professional1.shtml. I can easily help you if need be. Email me back the address and I'll get all the details for you.
Century 21 Beachside
You do not have to pay cash for a bank owned property. Many, if not most, are purchased with a loan. That part of your conversation with this agent is suspect. Again, I would ask an agent you feel comfortable with and trust, to call the agent and find out what the story is with the property in question.
Best of luck to you.
In order to see a bank owned property that is listed, you do not need to have this proof that you mentioned. I have shown many bank owned (REO/Real Estate Owned) properties. The bank owned properties are also often called Short Sales (because the bank comes up short on the repayment of the loan). Usually to place an offer on a bank owned property you will need to show: proof of funds for your down payment (not the entire asking amount), a copy of a check which would cover your down payment, usually 3 bank statements, proof on employment, and a pre-qualification letter from your lender. In order to buy a bank owned property you would not need to have the entire asking amount. I am wondering if the agent miscommunicated and was referring to a trustee sale, which would be held on the County steps and, in that case you would need a check with the entire amount of the sale.
Next, I can tell you about this particular property if you email me with the address. I can research it's status, and let you know what the deal is on that popular home.
Century 21 Realtors
And yes, the listing agent is representing the bank....not you...you need to get a buyer's agent who will represent you...so that your agent will make offers for you when you see those that interest you...and your agent will represent your best interests..not the banks. Even if a house is sold...and I assume she meant, an offer had been accepted...and it is probably still in escrow...she can leave the sign up to capture more buyers...it's an old ploy but a good one...that many realtors still do today....til the day the property is truly sold, whether bank owned or not...Get a buyer's agent to find this out for you...and if they are not taking back up offers, then move on to others that are available...good luck! Shy 310-429-4170 firstname.lastname@example.org