Foreclosure in 15068>Question Details

Gina Henkle, Home Buyer in 15065

I put an offer of 110k. on a house that was in foreclosure. I recently found out the bank accepted an offer of 90k. how can they accept a lower.?

Asked by Gina Henkle, 15065 Wed May 4, 2011

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I handle distressed properties and it is really important to get an offer that is as clean as possible, especially with a problematic property.

If your offer had no contingencies and was all cash, that is a head scratcher.

However, if you required financing, and the listing agent knew of problems that would have prevented financing, that could explain what happen.
1 vote Thank Flag Link Wed May 4, 2011
Good luck in your search. I hope you are working with a good buyer's agent. When looking at short sales and foreclosures you should be aware of such problems. Sometimes you can get a better deal when it is not a foreclosure.
Web Reference: http://www.gitabantwal.com
0 votes Thank Flag Link Wed May 11, 2011
Sometimes they also go strictly by first in, first reviewed. As others have said, the terms (all cash, no contingencies) may have been stronger. I have seen this happen before and there's no telling sometimes. Until it's closed, you may ask your agent to ask them to consider your home as a backup offer. In Cupertino, Calif. we have specific backup offer acceptance forms we use. Hope this helps.
0 votes Thank Flag Link Thu May 5, 2011
Hi Gina,

Seems you have your answers here....and they all make sense. I just wanted to wish you well in your home search. I find that sometimes it does take a while, but it will work out.

Karen
0 votes Thank Flag Link Thu May 5, 2011
Thank you all for answering my questions... I would like to say we did not have a contingent on the sale of the house and I had a pre approval of more money then I had actually offered. I had to go through Bank of America because this is what was mandatory in order to make an offer. I understand that if it was meant to be, it was meant to be. But it just doesn't seem fair. I went through their bank that they wanted. I had no contingent
, and I offered more money.

Again, thank you for replying to my post, I just think there is more to this then is meeting the eye.
0 votes Thank Flag Link Thu May 5, 2011
A Bank like any other owner can accept any price offer they want. Besides they have our tax payer money to ensure they remain solvent after making bad decisions.
0 votes Thank Flag Link Thu May 5, 2011
Banks are looking for the best terms on the purchase of their REO home inventory. Factors such as property condition can affect a buyer's loan approval, requested seller participation in buyer closing costs, time requested for a closing date, is it a cash or financed purchase, cost of any inspections/repairs requested and finally what will they net from the sale all contribute to their final decision. They will look at the highest and best offer available. They are already losing money on their asset, so it is a matter reducing that loss.

There is a great demand for REO properties and a buyer can find themselves in a multiple offer situation. It is always advisable to make the best terms you can to the bank and have a letter that you are "preapproved", not just "prequalified", by your lender included with your offer to help to get a successful acceptance of your offer. There may have been other factors that caused your offer to not be accepted, but maybe the listing agent can answer that for you.
0 votes Thank Flag Link Wed May 4, 2011
As others have answered, the bank is looking atmore than just the price being offered. I recently had a buyer lose a home in a similar situation. Her offer was 3.5% down with an FHA loan....and the property sold to a cash buyer. The property was distressed, a bank-owned property. Banks are looking to make sure a property sells in a timely manner to well-qualified buyers. The feedback I got from the listing agent on my deal was that the bank was worried about the property being eligible for an FHA loan.

Good luck in your house hunt!

Sarah Nathe
Sarah.Nathe@NEMoves.com
Selling on Cape Cod and Plymouth County
0 votes Thank Flag Link Wed May 4, 2011
Hi Gina,

I found that, like the Marie team stated, banks are taking the cleanest offers. I know the neighborhood your in and if you're not working with a buyers agent at this time I can help. It's helpful to know the in and out's of the process this way your next offer on the home of your choice may be an accepted offer.... and maybe even save a buck or two. Give me a call when your ready 724 689-0023
0 votes Thank Flag Link Wed May 4, 2011
Hi Gina - Like Brian said below, it's not always about the offer amount, it's about the terms. Banks want a clean offer with no contingencies. For example, if you know you are going to get the mortgage, don't put a mortgage contingency. Keep on looking, there must be another home out there for you!
The Marie Souza Team - Top Selling on Cape Cod
Phone: 508-790-2000
info@mariesouzateam.com
http://www.MarieSouzaTeam.com
0 votes Thank Flag Link Wed May 4, 2011
Gina;
It could be one of many reasons.
All you know for sure is that, for one reason or another, it was not meant to be.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Wed May 4, 2011
did your agent mentioned that your was a backup offer ?
0 votes Thank Flag Link Wed May 4, 2011
my agent didn't say anything other then another offer was accepted. I put the offer in way back in October and just found out the sale price.
0 votes Thank Flag Link Wed May 4, 2011
What is your agent advising....was your offer the best offer with the best terms....
0 votes Thank Flag Link Wed May 4, 2011
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