Did you get the counter offer stating to close in 21 days in writing? You do not have a contract until all parties have agreed & signed.
Your agent needs to call the listing broker, and remember everything needs to be in writing to be enforceable.

Fri May 9 2008, 14:44

I really hate to be the bearer of bad news, but unless you are willing to work on an intermediary status where as the broker acts as listing rep and assigns a buyers rep to you, then the communications will always be lackluster! I only apply this logic to foreclosures and short sales. This area of R.E. is a whole different ball game. You must realize that you are 1 of about 10-15 people that have the same sort of connection with the house. Unfortunately you are 1 out of 25 offers written on the house simply because it is a foreclosure. Why I know? My office handles a ton of REO properties here in Austin. The director of these properties acts as the listing agent. She then send a list of all properties to a small group of well connected individuals to generate interest. Out of this small group comes a stack of offers on the house, many of them well before the bank even has time to put a price on the home. This is before it is even entered into the MLS. Now think about it, if this home is already in the MLS, then the steps that I spoke of have already be put in motion and your offer is number 12! Now unless your offer has no loan contingency, you have just as good of a chance as offer number 25! Move on to another house is what I am trying to say. The amount of energy you are using trying to buy this house is better of re-focused on a new place! Good luck though!

Mon Apr 14 2008, 07:06

Pam, It doesn't make sense for you to sign an addendum to the contract when there is no contract!!! Was it something that your agent initiated? Putting a deadline on the offer is not going to help you either. Banks have no consideration for those.

Is this a short sale or has it already been foreclosed on?

The amount offered is not everything a seller (bank or individual) considers: Terms such as closing time, concessions that are being asked by the buyer. They all play a role in it. The fact that the other offer may be higher doesn't mean that it's the best, there might be something in your offer that is more attractive to them.

I suggest you continue looking for a home and if you find one you like better, you can withdraw this offer and you will get your earnest money back. On the next offer, make sure your agent only gives them a copy of the check.

Let us know how it turns out.

Naima

Sun Apr 13 2008, 21:52

When you signed the addendum, your agent should have also included a deadline to reply back...

Sun Apr 13 2008, 18:41

I have dealt with a similar situation with a buyer attempting to purchase a foreclosure. Some banks and listing agents have the communication and paperwork down to a science while others seem to drop the ball. It took five weeks to get the executed contract back from the seller (the bank). I would ask your agent to keep in touch with the listing agent. There are many situations where the file can be sitting on someones desk waiting to review. There is usually multiple people at the bank that have to approve the offer. If the listing agent has prior experience dealing with the bank they can shed some light on the expected turn around.

Have you signed something regarding the bank reviewing multiple offers? Typically they will provide a deadline for resubmitting the highest and best offer.

How long was the home listed before submitting your offer? Some banks choose not to review offers immediately within the first couple of weeks of listing. Specifically if the listing is far below market.

Sun Apr 13 2008, 18:29

Pam,

It sounds like there is a disconnect between you and your agent. I think you should communicate with your agent and tell them you have a few questions. REO's are definately different transactions, but it does sound as if there is a lack of communication.

Good luck Pam!

Sun Apr 13 2008, 17:45

I signed one addendum a week and half ago. It was the change from 30 to 21 days for closing. When my agent told me that the listing agent said there was an offer higher than mine, I decided not to offer more without an actual counter offer. I love the house, but I don't want to get so caught up that I offer more than it's worth.

Sun Apr 13 2008, 17:19

Excellent questions...and your circumstances are often the fun of dealing with REOs. You have to be patient and often play by their rules. They rarely formally reject your offer, they just don't respond. If they were actually negotiating with you regarding the terms and price then I would think they would be dealing with you if you got back to them in a timely manner. Did you sign any addendums? If you are ready to move on and don't have a signed contract yet, you can certainly withdraw the offer at any time and ask for the earnest money back. If they haven't signed the contract then they probably have not taken the check to the title company yet or cashed it. Your agent needs to find out where you stand and what the status of the offer is though. Everything else is speculation

Sun Apr 13 2008, 17:07

The listing is still in active status. Since the realtor told me that my check for earnest money would not go to the title company until my offer is accepted, the agent still has it. I'm simply wondering what is taking so long. I've never waited this long before on a property. I would think that if they have a higher offer, they would accept it and move on.

Sun Apr 13 2008, 16:47

I would leave your offer on the table, just in case. I'm surprised however that they took your Earnest Money already though. Ask your agent where your Earnest Money is. Normally your agent can hold onto the Earnest Money until you have a fully executed contract, then it should be turned in with the executed contract. See if you can sit as the first backup offer, but get your Earnest Money check back just in case you find another home you wish to purchase. Make sure your agent stays on top of it however, and knows what's going on with the property, as a lot of times homes fall through, and go back into Active in MLS and the buyers agent is unaware of such. So make sure he/she stays on top of it.

Sun Apr 13 2008, 16:31

The bank has not accepted my offer, so we have no contract. I believe they can continue to accept offers. My check for earnest money has not been cashed. I was told by my agent that it would not be put into escrow until my offer is accepted. Since I've never tried to buy a reo before, I'm not certain what to expect. I'm thinking I should have put an expiration clause in the offer.

From the time a reo goes on the market, how long is it before a bank typically accepts an offer?

Sun Apr 13 2008, 15:56

I believe there are more questions that need to be answered, off your situation. However I will answer based on my limited knowledge you have provided

a) Where is your real estate agent providing you advice on this matter, there are many tips and tricks on submitting bank foreclosures and securing the winning bid
b) Do you have an execution agreement it does not appear that you do, if you did then no other bids can be accepted via the bank unless they are back up
c) Where is your check for options and your earnest money? Is it in escrow with receipt from the title company?
AS REFERENCED there are many other questions that need to be answered I don't have the full story your agent should be providing you the advice. We specialize in bank foreclosures.

Sun Apr 13 2008, 15:35