Foreclosure in Eagan>Question Details

Chris, Home Buyer in Eagan, MN

Good faith: any recourse for an issue with a listed price that is changed when moving towards closing?

Asked by Chris, Eagan, MN Thu Mar 13, 2008

I am a first time home buyer and have run into an issue with closing. The town home I am interested in buying was listed for $142K, which I made a bid on. The town house is in foreclosure and is being handled by a third party administrator, TPA, who contacted the listing agent and stated my bid was approved.

I had a verbal agreement with the TPA and they had sent documents to the listing agent stating the bid was approved. I received a call from my realtor that same afternoon stating the "investor", a smaller bank that owns the property, was not happy with the bid and turned down the offer and wants $148K as their asking price.

I am told the bank holds all of the cards here and I have little to no leverage but to meet their price. I have made a counter offer at this point, but am also under a deadline as I have received the bylaws and financials. Do I have any recourse at this point? This strikes me as unfair; any advise is apreciated.

Thank you,

ch

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Answers

5
Chris, are you represented by a Realtor? If so, your Realtor should be calling the Listing Agent and they in turn calling TPA daily on this. I've found that many instances, banks need constant pressure on these kinds of deals to get them to accept. I had a deal where the first price the bank said they'd accept was 170k and after a few weeks of pressure and calls they dropped thier acceptable price to 148k.

Be patient and hopefully it will come together.

Thanks, Todd Norsted
Web Reference: http://www.toddnorsted.com
0 votes Thank Flag Link Fri Mar 14, 2008
In addition to the good advice below, another option is to withdraw your offer and wait. The property may sell, or it may not. If it doesn't in, say, 30 days, make another offer. It can be at your initial bid price, or higher, or lower. Banks, just like individuals, have shifting priorities and sometimes reach different decisions after a property has been sitting on the market for awhile.

The bank may be holding most of the cards, but remember "The Golden Rule": He who has the gold, rules. You've got the gold; you've got the money to buy. You may be at a disadvantage, but you're by no means powerless.

Good luck.
0 votes Thank Flag Link Fri Mar 14, 2008
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Sorry Chris.

The bank is in the driver's seat. Verbial is not binding. It must be in writing and signed by all parties. The best you can do is counter an hope they accept. If they don't and the home is worth 148K and you like it go for it. 6% interest equates to $35.97 a month more in payment not earth shattring but unfair under the circumstances.
Web Reference: http://www.cathysloan.com
0 votes Thank Flag Link Thu Mar 13, 2008
Michael is right on the money here. Until an offer is fully executed by all parties, it is not binding... it stinks, but I've seen it happen before!
0 votes Thank Flag Link Thu Mar 13, 2008
Chris,
All real estate transactions must be in writing. Until you have a written contract you don't have a deal. You can say no to their counter offer or try to meet in the middle. There are a lot of town houses for sale, if you don't think it's not worth $148,000 or you think you're being treated unfairly keep looking. With foreclosures the banks do seem to make the rules as they go.
Michael Doyle Realtor
0 votes Thank Flag Link Thu Mar 13, 2008
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