Foreclosure in 07042>Question Details

Alex Rohrs, Home Buyer in 10011

Is a backup offer on a foreclosed (bank owned) property worthwhile?

Asked by Alex Rohrs, 10011 Wed May 27, 2009

My wife and I found a house that we are very interested in. The property is bank owned and had been on the market for 60 days without receiving any offers. When we decided to make an offer we were informed that an offer had been place a couple of days prior and was in attorney review. We decided to place a backup offer anyway.

We really like this house and are holding out hope.

Is it reasonable to hold out hope that a deal on foreclosed property will fall through and our offer will be considered or should we move on?

Thanks!

Help the community by answering this question:

Answers

11
Alex,

YES!!!!!!!!!!!!!!!! I've been a REO agent for years and I always recommend buyers put in a back up offer. So many of these deals fall through, its not uncommon for my to have 2-4 accepted offers before a deal goes to closing. Between buyers remorse, financing issues, inspection issues, lost jobs, etc.... nothing is set in stone until it closes. If you don't put in your back up offer and a deal falls, how will the listing agent know to contact you or your agent. GOOD move putting in your back up offer. Best of luck!
Web Reference: http://www.CurtDarragh.com
3 votes Thank Flag Link Wed May 27, 2009
Hi Curtis,
I was just reading your response to the post above. Put in a back up offer...I can't figure out how to just get my offer in...I have access to over 52 bank owned properties on Long Island. I have all the info with regards to the properties...not only will the bank not speak to you, they hang up on you. The lawyers do the same. I work with realtors and every single one of them cannot get the bank to work with them and submit offers. Can you tell me how this scenerio went...who you speak to...etc....
I greatly appreciate your time in advance.
Sincerely,
Karen
Flag Sun Apr 19, 2015
Hi Alex, I recommend you do both - put in the back-up offer and move on. The process with short sales or bank-owned properties can be a long one and sometimes buyers lose their patience and move on - and this opens the door for back-ups or new buyers. I am working on a deal right now where this is the case. But what I do not recommend is that you put all of your hopes into this one - the probability is low and as you wait and hope, you may very well lose out on other opportunities.

A buyer I recently worked with was faced with much the same scenario - we decided to put in a back-up and as soon as we did, I said, now forget about it and let's keep looking! We did just that, and they found a beautiful home at a great price. If we had waited, we would have missed the home they bought, and would still be waiting -- and waiting -- for what?

So, back-up offer is in, "now forget about it" and move on -- if it is meant to be, it will come around.

Good luck to you!
Jeannie Feenick
Search and connect at http://www.feenick.com
Web Reference: http://www.feenick.com
2 votes Thank Flag Link Wed May 27, 2009
What happens in NJ if you do put in a back up offer, and then find another house. Spring is coming. The realtor is making it sound like you have to take the house. You can't buy 2 houses...reply rickjanartist@comcast.net
Flag Sat Mar 7, 2015
Hi Alex, yes in most cases lately, a back up offer is a great idea. I think more deals than not are falling thru due to mortgage criteria changes half way thur a transaction and changes in the buyers financial situation i.e. job loss , drop in pay...etc...
Hold out once you have the offer in but continue to get information on the current contract as to how it's going, any changes, how long until mortgage approval on the current buyer and other time lines being met. I would also keep my options open on the other end in case you see something that makes more sense to you in the meantime...just in case.

Good luck
Geri Solomon
homesbygeri.com
Web Reference: http://homesbygeri.com
1 vote Thank Flag Link Sun May 31, 2009
Most definitely make a back up offer. In the Greater LA area, buyers are offering more than the asking price to make sure they win the bidding process. When they are in escrow, frequently, the appraisal is lower than their offer. They try to negotiate the price down with the bank, but the bank has the option of negotiating, telling the buyer to make up the difference in cash or going to the next buyer. Many times the original buyer was trying to get a screaming deal and just walks away leaving the door wide open to you, if you are patient. Good luck.
1 vote Thank Flag Link Sat May 30, 2009
Yes! Don't put all your hopes in it. Place your back-up offer in and keep looking. You'll have a possibility when the offers in front of yours move out of the way. Move on. Who knows; you may, even, find a better deal.

Wishing you the best,
1 vote Thank Flag Link Fri May 29, 2009
Yes, make an offer! I had several short sales and none of them was closed by first buyer. We closed them with back-up offers. Probability that it happens with a house you like is very high. Good luck!

Natalia Doudko

Search Short Sales and REO in Palm Coast FL at http://www.homebytheocean.com
1 vote Thank Flag Link Fri May 29, 2009
Alex, You should hang in there. I just had a short sale closing and it went to the second offer in line. The majority of buyers do not wait for bank approval, so you do have a shot at it. Does the bank know about your offer? Have your attorney contact the other attorney to see if their is a chance for you.
1 vote Thank Flag Link Thu May 28, 2009
Some people will say it's a waste of time to place a backup offer on a home that is under contract and in escrow. That depends. If you have a solid down payment of at least twenty percent, are not buying on contingency, have good credit scores, want to wait for just this one home, it's OK to think about placing that backup offer.

However, if you are so qualified to buy, it's better strategy to move forward and consider that homes that are actually for sale and available. Another home will get your attention and be a better opportunity.

Harrison K. Long, Coldwell Banker Previews, Irvine, CA.
0 votes Thank Flag Link Fri Aug 21, 2009
I'm reading your question and you clearly state that the property is foreclosed and bank owned. Short sale verbage has nothing to do with your offer.
By all means put in an offer especially since the first offer had not been accepted yet. Insist that the listing broker/agent present the offer to the bank immediately. When an offer has been made to a bank they usually act fairly quickly-that's my experience in South Florida. Some banks just put the property back on the market if the offer they were considering falls through, other go to their "back-up" file.Keep on the listing agent/broker to make sure he/she knows you are actively wanting this property.
0 votes Thank Flag Link Thu Aug 20, 2009
Alex ... When we work with buyers here in Orange County, California, they sometimes like the short listings. These are not truly short sales, because about 80 percent go away by foreclosure or loan modification. So we do not encourage our buyer clients to spend time or use energy on short listings.

You asked: Is it reasonable to hold out hope that a deal on foreclosed property will fall through and our offer will be considered or should we move on?

I recommend that you do not spend time or energy on this short project. If you already like the home, put in a backup offer. But do not hold out hope or use energy waiting. It is not a good opportunity.

If you are a real homebuyer, you will enthusiastically look at regular or equity listings, and those will be true opportunities for you and your family.

Harrison K. Long, Coldwell Banker Previews, Irvine, CA.

http://www.ExploreOCHomes.com
0 votes Thank Flag Link Tue Jun 2, 2009
9 out of 10 I think you would be waisting your time. If you REALLY want THIS house, then it couldnt hurt.
0 votes Thank Flag Link Tue Jun 2, 2009
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer